Hyderabad: The Centre can directly monitor implementation of Centrally-sponsored schemes (CSS) independent of the progress reports submitted by state governments.
From this month, details of all CSS will be available on the Public Financial Management System (PFMS), an online portal developed by the Centre and linked to the treasuries of all states, districts and departments. The Centre has reduced the number of CSS from 66 to 28.
The system will allow the Prime Minister’s Office and other Central government officials to monitor the implementation of schemes. This move is meant to increase transparency, improve data credibility and enable better decision making.
States have been directed to ensure that funds under all schemes and programmes are released on time. The Centre will have access to information regarding fund utilisation by implementing agencies. This will lead to better monitoring, review and decision making. It will also enhance accountability in the implementation of schemes.
So far, the general practice has been for the Centre to release a single instalment of funds to state governments for the implementation of CSS. States are expected to submit fund utilisation certificates and progress reports, after which they become eligible to receive additional funds.
The Centre has to wait for the submission of reports to track the progress of work on the schemes and utilisation of funds. In some instances, states do not utilise the funds for the stipulated purpose. Instead, they divert the funds to other projects and produce fake utilisation certificates to enable them to receive more funds.
With the introduction of the PFMS, the Centre will be able to verify the position of funds and track their release by states to the districts, and their utilisation by district administrations. Implementing agencies will have to upload details of the progress of works to the PFMS portal.
An official said that if the Centre has any doubt regarding the legitimacy of fund utilisation and the progress of works, it can deploy its own agencies to verify details at the ground-level. If states do not put money to appropriate use, the Centre can stop the further release of funds.
