Q. 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?
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.