India is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF projection. However, it has been observed that in some sectors, allocated funds remain either under-utilised or misutilised. What specific measures would you recommend for ensuring accountability in this regard to stop leakages and gaining the status of third largest economy of the world in near future ? (Answer in 150 words)

- India is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF projection. However, it has been observed that in some sectors, allocated funds remain either under-utilised or misutilised. What specific measures would you recommend for ensuring accountability in this regard to stop leakages and gaining the status of third largest economy of the world in near future ? (Answer in 150 words)
Introduction
India’s rapid economic growth and its emergence as the fourth largest global economy require effective public financial management. However, under-utilisation and misutilisation of funds hinder developmental outcomes and fiscal efficiency.
Body
1. Strengthening Accountability Mechanisms:
- Outcome-Based Budgeting: Link expenditure to measurable outputs and outcomes rather than allocations.
- Strict Monitoring: Use real-time dashboards and digital platforms like PFMS (Public Financial Management System) for tracking fund flow and utilization.
- Audit and Evaluation: Enhance the role of CAG and internal audits to detect inefficiencies and ensure corrective action.
- Empowered Local Institutions: Decentralize fund management with capacity building and transparency tools at the grassroots.
2. Reducing Leakages:
- Promote Direct Benefit Transfers (DBT) to remove intermediaries.
- Enforce zero-tolerance policy on corruption and misuse through e-governance and accountability laws.
Conclusion
Ensuring transparent, efficient, and outcome-driven fund utilization will strengthen fiscal discipline, reduce leakages, and help India achieve its aspiration of becoming the third-largest global economy.