Utilisation of Public Funds
Proper rational and corruption free use of public funds is important from the point of view of better public service delivery, public funds are created mainly from the contribution made by the taxpayers.
Public funds are the last and only source of funds for welfare and other government schemes. In such a situation, the betterment of the general public and efficient use of public funds is an essential requirement for the progress of the nation In the context of the use of public funds, there is an observation of the Indian Prime Minister, according to which out of one rupee spent on welfare schemes, only 10 paise reaches the real beneficiary.Thus, only 10 per cent of the money reaches the actual beneficiary and it cannot be said to be an efficient use of public money with certainty. 90 per cent of the allocated money goes to institutional spending and corruption. Such examples illustrate the need for efficient and proper use of public funds.
Efficient use of public funds is concerned with mobilizing the sources of funds, prioritizing various programmes, budget in process, efficient management of resources and keeping control of all these. There has been an awakening among the public due to the increase in the level of education and people want to know where the money paid by them in the form of tax is being spent.The budget is the most important tool for the management of public money.
Money is drawn from the Consolidated Fund of India only through budgetary provisions and proposals which includes the Appropriation Bill . At present, the budget is being seen as an instrument of economic development and traditionally efficient use of public money is associated with the proper implementation of the budget. The most important tool to use is but not the only tool.
Principles of use of public funds.
It is for social justice or socio-economic interest and development.It should be done with the goal in mind.
The use of public funds should be in line with the ideals offiscal or fiscal decentralization.
Efficient and proper use of public funds with the utmost importance of accountability and transparency.
To make the use of public funds more rational and efficient through methods like social auditing.
