Consider the following statement regarding Financial Management Index:1. It is published by Ministry of Panchayati Raj 2. Social Audit is one of the key parameter to judge the efficiency of state performance .Which of the above statements is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 and 2

Answer: B

Notes:

Statement 1 is incorrect- It is released by Ministry of Rural Development

About Financial management Index:

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.

Source: Article

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