Central Plan Scheme Monitoring System: Difference between revisions

Revision as of 20:06, 15 October 2015

Revision as of 20:33, 15 October 2015

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==Why CPSMS==

There are over 1045 plans being implemented in the priority social sector, aimed at millions of beneficiaries across India, through the different ministries of the central government of India. Moreover, the Central Government also releases funds under Additional Central Assistance program to states to use within their region. Approximately {{INRConvert|3|lc}} are released under these channels each year. Given the diversity in and number of channels through which the money is spent, the Central Government finds it necessary to ensure that the money is spent according to its intended purpose, and provide an accounting of same.{{cn|date=October 2015}}

CPSMS' purpose is to provide greater transparency and accountability to social sector monitoring that has not existed until now. Financial utilization can be put in the public ___domain, and fund transfers to grassroots entities and utilization by them can be accessed by interested individuals and organizations. Only about 20% of these funds are routed to states through the Treasury route and 80% of funds are sent through Special Purpose Vehicles, which have weaker intrinsic internal control mechanisms available in the Treasury mechanism.{{cn|date=October 2015}}

The current program-specific MISs operate with time lags and do not give a clear picture of funds remaining unutilized in each fiscal year. While funds released by the central government are immediately booked as expenditure in the Central Government accounts, utilization in the field takes time and while commercial banks enjoy the float, the Central Government must borrow to meet its fiscal deficit. This is attributable to the absence of a system that could quickly provide consolidated or granular information on utilization, advances, fund transfers or bank balances across schemes, districts, blocks or institutions. By the time utilization reports reach the State and Central level, the data is already historical, significantly limiting its utility. CPSMS will aid in better fiscal deficit management, and to ultimately move to a system of flow of authorization as against the actual flow of funds, whereby banks will first meet the expenses of the implementing agencies and then seek reimbursement from the Central Government.{{cn|date=October 2015}}

MISs based on post facto data feeding suffer from drawbacks of inefficiencies, inconsistencies, gaps and perennial reconciliations, as they are not integrated with the process flow. CPSMS attempts to address this, and the associated issues of transparency and accountability related to the SPV mode of implementation, keeping all the advantages of the mode intact.{{cn|date=October 2015}}

==Modus Operandi==