Launching the Single Nodal Agency (SNA) dashboard, a system which tracks switch of funds to states for centrally sponsored schemes and utilisation of funds by central businesses, Finance Minister Nirmala Sitharaman on Tuesday mentioned it’ll make governance extra clear and realise higher worth for each rupee despatched by the Centre by ‘just-in-time’ cash launch.
The SNA dashboard of the Public Financial Management System (PFMS), launched by Sitharaman as a part of the Azadi Ka Amrit Mahotsav Iconic Week Celebrations, was put in place in July 2021 and all states received on board by March this 12 months. The SNA offers details about what the state has spent, and Centre releases the cash solely when it sees it getting utilised. Finance Ministry officers additionally spoke about one other system for money administration, the Treasury Single Account (TSA) system, for autonomous our bodies similar to Indian Council of Agricultural Research (ICAR).
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Sitharaman mentioned about Rs 4.46 lakh crore will get transferred to states by means of Centrally Sponsored Schemes (CSSs) and the SNA would result in larger transparency within the spending of the quantity. “About Rs 4.46 lakh crore goes through the Centrally Sponsored Schemes and this is not a small amount. Today, you are in a position to track that money in a year to states … it is a huge success in making governance transparent. That quantum of money is also equally sent just in time … what better value realisation for every rupee sent,” she mentioned.
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As of date, there was Rs 1.2 lakh crore mendacity with the states within the SNA system. “That’s the unspent balance. So we need not give more money right now … the government has been able to save about Rs 10,000 crore in interest cost in the last fiscal due to the introduction of TSA,” an official mentioned.
Finance Secretary T V Somanathan mentioned this method would assist lower down on the curiosity expenditure as cash could be launched on the stage the place it’s wanted. “If the money is stuck somewhere, we would like to minimise what is stuck and hold it where it is more efficiently held. GoI would like to pay as little as possible of public money as interest. So the SNA and TSA help us to minimise the interest costs borne by the GoI and that is not a trivial cost. That actually helps us a lot, particularly in a difficult year like the current financial year. These are extremely helpful in containing fiscal deficit within what is possible,” Somanathan mentioned.
‘Regulators should be well advanced on digitisation’
At a separate occasion, Sitharaman mentioned regulators and different entities ought to be nicely superior and forward of the curve in understanding digitisation to make sure that there isn’t a misuse of applied sciences, including that there’s must have firewall mechanisms within the context of digitisation.
According to her, the Competition Commission of India (CCI) and National Financial Reporting Authority (NFRA) ought to be forward of the curve within the context of digitisation to make sure honest and accountable practices in addition to no misuse of applied sciences.
