Economics Current

Financial Management Index of rural development

The Rural Development Ministry announced in July its plan to roll out a ranking based on efficient management of financial resources allocated for implementing half a dozen rural development schemes. The department has developed a financial management index that will map the performance of states and rank them on the basis of 5 parameters. 
These include:
·Preparation of annual plan
·Expeditious release of due state share
·Timely utilisation of the funds 
·Submission of the utilisation certificates
·Optimum implementation of DBT module for the rural employment guarantee scheme, internal audit and the social audit.
In the wake of ever increasing time bound targets and consequential higher allocation of funds under rural development (RD) programmes and to help them achieve the desired objectives, the Ministry is of the view that it is imperative to lay down minimum essential norms of financial management and accountability for ensuring optimal utilisation of funds by the state implementing agencies. 
The performance of the States on the parameters of the Index would also promote the spirit of competitive, cooperative federalism amongst States.
On similar lines, the Ministry of Panchayati Raj has also decided to conduct an online audit of 20% of 2.5 lakh gram panchayats. 


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