Financial Management Index for Rural Development Programmes

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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.