Chapter 7 · Topic 7.3 · Prelims + Mains3 of 3
Public Service: Utilisation of public funds
Key points
- Under-use: money is given but not spent. Misuse: money is spent, but on the wrong thing or stolen.
- Causes of under-use: late release, weak planning, staff shortages, complex procurement, fear of audit.
- Causes of misuse: leakages, inflated estimates, ghost beneficiaries, political pressure.
- Fixes: DBT, real-time tracking, outcome budgets, social audit, geo-tagging, e-procurement, timely audit, personal responsibility.
4 PYQs 2011–2025
Utilisation of public funds
Like pocket money: unused, nothing gets bought; if someone takes a cut, you get less.
Mains 2019 asked for reasons and implications. Reasons for under-use: late release of funds, weak planning, staff shortages, complex procurement (the buying process), fear of audit. Reasons for misuse: leakages, inflated estimates, ghost beneficiaries (fake names on a list), political pressure. Implications: lost development, cost overruns and loss of public trust.
Effective utilization of public funds is crucial to meet development goals. Critically examine the reasons for under-utilization and mis-utilization of public funds and their implications.
Mains 2025 asked for measures for ensuring accountability. Measures: direct benefit transfer to cut middlemen, real-time tracking of funds, outcome budgets with targets, social audit by beneficiaries (people check the work themselves), geo-tagging of assets, e-procurement, timely audit with action-taken reports, and fixing personal responsibility for wilful loss.
India is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF projection. However, it has been observed that in some sectors, allocated funds remain either under-utilised or misutilised. What specific measures would you recommend for ensuring accountability in this regard to stop leakages and gaining the status of third largest economy of the world in near future?
| Problem | Fix |
|---|---|
| late release | fund flow linked to progress |
| leakage | direct benefit transfer |
| ghost beneficiaries | biometric and Aadhaar-based verification |
| no outcomes | outcome budget, third-party evaluation |
| no accountability | social audit, personal responsibility |
The 2nd ARC’s draft values list includes Ensuring economy and avoidance of wastage in expenditure. So careful spending is a public service value, not just an accounting rule (2nd ARC, Fourth Report).
What UPSC asks: the difference between under-use and misuse; fixes like DBT and social audit. Next likely angle: economy as a value.
Mains box: analysis and answer points
- Mains 2019: reasons for under-use, reasons for misuse, then implications (lost development, cost overruns, loss of trust).
- Mains 2025: give measures from the table and end with the 2nd ARC value "economy and avoidance of wastage".
- Next likely angle: economy (careful spending) as a public service value.
Practice
Prelims PYQs on this topic (3)
Consider the following pairs :
| Provision in the Constitution of India | Stated under
| I. Separation of Judiciary from the Executive in the public services of the State | The Directive Principles of State Policy
| II. Valuing and preserving of the rich heritage of our composite culture | The Fundamental Duties
| III. Prohibition of employment of children below the age of 14 years in factories | The Fundamental Rights
How many of the above pairs are correctly matched?
Answer (c) & explanation
All three pairs are correctly matched (c). Pair I is right: separation of the judiciary from the executive is Article 50, a Directive Principle. Pair II is right: valuing and preserving our composite culture is Article 51A(f), a Fundamental Duty. Pair III is right: no child below 14 may work in factories, mines or hazardous work under Article 24, a Fundamental Right. So options (a), (b) and (d) fail.
Notice related provisions: Article 21A gives free education for ages 6–14 (86th Amendment, 2002), and Article 51A(k) asks parents to educate their children. The Child Labour Amendment Act, 2016 banned all child labour below 14. Article 39(e) and (f) protect children too.
Article 45 (early childhood care, a DPSP) and Article 24 (a Fundamental Right) both talk about children. Keep them apart.
Answer as per the official UPSC answer key.
Consider the following statements :
- 1. 'Right to the City' is an agreed human right and the UN-Habitat monitors the commitments made by each country in this regard.
- 2. 'Right to the City' gives every occupant of the city the right to reclaim public spaces and public participation in the city.
- 3. 'Right to the City' means that the State cannot deny any public service or facility to the unauthorized colonies in the city.
Which of the statements given above is/are correct?
Answer (d) & explanation
Statements 2 and 3 are correct (d). The "Right to the City" is an idea from the French thinker Henri Lefebvre (1968). Statement 1 is wrong: it was taken up in the UN's New Urban Agenda (Habitat III, Quito, 2016), but it is not a binding, agreed human right that UN-Habitat monitors country by country. Statement 2 is right: it covers every resident's claim to reclaim public spaces and take part in city decisions. Statement 3 is right: it means the State cannot deny basic services to people in unauthorised colonies.
Notice India's urban schemes: PMAY-Urban, AMRUT and the Smart Cities Mission. The 74th Amendment (1992) gave constitutional status to urban local bodies.
"agreed human right" and "monitors" turn a policy idea into a treaty. Words like these usually signal a wrong statement.
Answer as per the official UPSC answer key.
Consider the following :
- 1. Right to education.
- 2. Right to equal access to public service.
- 3. Right to food.
Which of the above is/are Human Right/Human Rights under “Universal Declaration of Human Rights” ?
Answer (d) & explanation
All three are human rights under the UDHR (d). The Universal Declaration of Human Rights, adopted by the UN General Assembly on 10 December 1948, lists the right of equal access to public service (Article 21), the right to a standard of living adequate for health and well-being, including food (Article 25), and the right to education (Article 26). So options (a), (b) and (c) leave out real rights.
Notice the wider frame: 10 December is Human Rights Day. The UDHR is not a treaty, but its rights were made binding through the two 1966 Covenants (ICCPR and ICESCR). India's own Right to Education (Article 21A, 2002) and the National Food Security Act, 2013 echo these rights.
Answer as per the official UPSC answer key.
Mains PYQs on this topic (1)
Write an answer
In 150 words, explain the significance of Public Service with one recent example.
Flashcards (3)
One cause of under-use of funds?
Late release.
One fix for leakage?
Direct benefit transfer.
2nd ARC value on spending?
Economy and avoidance of wastage in expenditure.
Next chapter · 8. Probity in Governance →Probity in Governance: Probity and conflict of interestSyllabus: GS-IV · Public/Civil service values and Ethics in Public administration: Status and prob…