Financial Management Index for Rural Development Programmes

News: The Union Minister of Rural Development has released the “Financial Management Index for Rural Development Programmes”.

Facts:

• Aim: To rank states on efficient management of financial resources allocated for implementing rural development programmes.
• Parameters: The index will rank the States on the basis of following parameters:
  • Preparation of annual plan and projecting the requirement of funds for the financial year;
  • Expeditious release of State’s share;
  • Timely utilization of the funds and submission of the Utilization Certificates;
  • Optimum implementation of Public Financial Management System (PFMS) & Direct Benefit Transfer(DBT);
  • Internal Audit and
  • Social Audit.
• Significance: The performance of the States in the Index would promote the spirit of competitive, cooperative federalism amongst States.