Financial Management Index for Rural Development Programmes |ForumIAS

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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.