India : Note on Public Financial Management and Accountability in Centrally Sponsored Schemes

World Bank

India : Note on Public Financial Management and Accountability in Centrally Sponsored Schemes

2006

World Bank

The budget outlay for Centrally Sponsored Schemes (CSS) for India in 2005-06 is significantly higher as compared to the previous year's level of Rs.395,000 million. This includes increased allocations for rural roads, rural employment, and education and nutritional support for pre-school children. At present there are over 200 such schemes in operation, of which a dozen accounts for more than two-thirds of the outlay. Given the states limited scope to significantly raise internal resources within the existing fiscal framework, coupled with a high wage bill that crowds out development expenditure, the CSS are likely to remain an important source for development funds for the states. The objective of CSS is to address issues of national priority with focus on human development, poverty alleviation and rural backwardness. The findings and the suggestions to improve financial accountability systems in CSS needs to be viewed in the light of varying quality of governance across the states and the fiscal stress faced by certain states.

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access to information accountability accounting allocation annual reports auditing capacity building communication technology decentralization development projects devolution economics employment equipment expenditure extension financial institutions gps housing incorporation information technology institution laws legislation management information systems material poverty alleviation private sector project management public expenditure public sector resource allocation results rural development savings society stakeholders union uses

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Program managers; Targets; Government accounting; Persons; State government; Tax exemptions; Societies; Commodity; Policy formulation; Financial statements; Css; State treasury; Cash basis; Financial accountability systems; Accountability arrangements; Day- to- day management; New technologies; Institutional frameworks; Institutional framework; Financial accountability; State budget; Budgetary discipline; Web; Audit committees; Expenditures; Finance staff; Financial years; Financial transfers; Limited; Program implementation; Enabling environment; Public financial management; Performance review; Performance reports; External audit; State governments; Appropriations; Public expenditure tracking; Audits; Support staff; Beneficiaries; Health sector; Procurement process; Accounting standards; Accountability framework; Program design; Program management; Deposits; Total expenditure; Management reviews; Internal audit; Procurement; Expenditure levels; Annual budget process; Financing arrangements; Physical progress; Domain; Annual report; Transparency; Fiscal framework; Programs; Performance reporting; Legal entity; Internal audit function; Sensitivity analysis; Public funds; Disclosure requirements; Financial managements; Administrative orders; Management responsibilities; Result; Community access; Management control; Bank accounts; Public account; Time frame; Fiduciary risk; Financial reports; Supreme audit institutions; Implementing agencies; Tight fiscal position; Management accounting; Internal controls; Auditor general; Cash balances; Accounting records; Management services; National priority; Merger; Outcome indicators; Program strategy; Funds flow; Accounting policies; Performance audit; Accounting manuals; Internal control; Data entry; Financial management arrangements; Accounting framework; Certificates; Budgeting process; Budget allocation; Financial status; Expenditure control; Annual budget; Inspections; Legal entities; Certificate; Partnership; Annual financial statements; Public expenditure review; Budget estimates; Verification; Auditors; Implementation period; Program objectives; Rural banks; Budget transfers

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India : Note on Public Financial Management and Accountability in Centrally Sponsored Schemes

2006

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