14 Aug 2023 Misuse of Funds in National Social Assistance Programme (NSAP)
This article covers “Daily Current Affairs” and the topic details “Misuse of Funds in National Social Assistance Programme (NSAP)”. The topic “Misuse of Funds in National Social Assistance Programme (NSAP)” has relevance in the Social Justice/Governance section of the UPSC CSE exam.
For Prelims:
About Misuse of Pension Funds?
For Mains:
GS 2: Social Justice/Governance
About the National Social Assistance Programme (NSAP)?
About Comptroller and Auditor General (CAG)?
Why in the news:
The Comptroller and Auditor General of India (CAG) has revealed that the Ministry of Rural Development (MoRD) redirected funds meant for the National Social Assistance Programme (NSAP), encompassing old age pension schemes, towards promoting various other schemes.
About Misuse of Pension Funds
The National Social Assistance Programme (NSAP), launched in 1995, aims to provide support to vulnerable individuals in below-poverty-line households. However, recent findings by the Comptroller and Auditor General (CAG) highlight instances of fund diversion and discrepancies in the implementation of NSAP.
Misuse of Pension Funds for Publicity:
- The Ministry of Rural Development (MoRD) diverted funds allocated for NSAP towards publicity campaigns for other ministry schemes.
- Funds intended for pension disbursal and administrative expenses were diverted for non-designated purposes. The diversion of funds was identified both at the ministry level and within state/UT governments.
- In 2017, the MoRD initiated a publicity campaign through hoardings to promote various programs. Approximately Rs 39.15 lakh was approved for hoardings, while around Rs 2.44 crore was approved for campaigns across multiple states.
- The funds designated for the campaign were originally intended to be obtained from the National Rural Employment Guarantee Scheme; however, they were eventually sourced from NSAP schemes.
Advertisement Discrepancies:
- The CAG report highlighted discrepancies in advertisement work orders related to NSAP schemes. Despite being funded from NSAP resources, the advertisements emphasized schemes like Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), not related to NSAP.
States Implicated in Fund Diversion:
- The funds initially meant to be acquired from the National Rural Employment Guarantee Scheme for the campaign were eventually derived from NSAP schemes.
- These diversions raised concerns about the proper utilization of resources for their intended beneficiaries.
Implications and Beneficiary Impact:
- The diversion of funds led to adverse implications for the planned Information, Education, and Communication (IEC) activities under NSAP. An amount of Rs 2.83 crore, originally earmarked for NSAP Information, Education, and Communication (IEC) activities, was utilized for the promotion of other ministry schemes.
- This diversion compromised the intended outreach and support for the beneficiaries of NSAP.
About National Social Assistance Programme (NSAP):
Initiated on the 15th of August, 1995, as a scheme with central sponsorship. Aims to provide social assistance to individuals and families in below-poverty-line households.
Components of National Social Assistance Programme (NSAP):
- Indira Gandhi National Old Age Pension Scheme (IGNOAPS): Provides a monthly pension of Rs. 200/- to BPL individuals aged 60 or above, which increases to Rs. 500/- for those aged 80 and above.
- Indira Gandhi National Widow Pension Scheme (IGNWPS): Offers a monthly pension of Rs. 200/- to BPL widows aged 40-59.
- Indira Gandhi National Disability Pension Scheme (IGNDPS): Grants a monthly pension of Rs. 200/- to BPL individuals aged 18-59 with severe and multiple disabilities.
- National Family Benefit Scheme (NFBS): Provides a lump sum amount of Rs. 10,000/- to BPL families on the death of a primary breadwinner aged 18-64.
Implementation:
- Executed by the Ministry of Rural Development in collaboration with state/UT governments.
- Utilizes the Direct Benefit Transfer (DBT) mode for fund disbursement to beneficiaries’ bank accounts or postal accounts.
- Features a web portal offering information on guidelines, circulars, grievance redressal, etc.
Impact:
- Contributed to poverty reduction, improved living standards, and empowerment of beneficiaries.
- Aligned with Sustainable Development Goals (SDGs) related to poverty eradication, social protection, and inclusion.
- Between 2017 and 2021, approximately 4.65 crore beneficiaries relied on old age, widow, disability pensions, and family benefits.
Comptroller and Auditor General (CAG): Role and Authority
CAG is an independent constitutional authority established to ensure transparency and accountability in public finances.
Responsibilities:
- Ensures accountability of government and public authorities to Parliament and State Legislatures.
- Assures proper utilization of public funds and resources.
- CAG conducts audit of expenditure on behalf of the
- Parliament.
- He acts as a guide to the Public Accounts Committee.
- He submits audit reports to the president.
CAG’s Independence:
- Article 148 of the Constitution establishes an independent office for the CAG.
- After the tenure, the CAG is not eligible for any further government office.
Relevance in Constitution:
- Articles 149-151 outline the Duties & Powers, Form of Accounts, and Audit Reports.
- Article 279 details calculations of net proceeds.
- The Third Schedule and Sixth Schedule pertain to the Oath or Affirmation and the Administration of Tribal Areas in certain States, respectively.
SOURCE:https://indianexpress.com/article/india/cag-govt-diverted-funds-of-pension-schemes-for-publicity-of-other-schemes-8885049/
Q.1 Which of the following are the components of the National Social Assistance Programme?
- Indira Gandhi National Old Age Pension Scheme
- National Family Benefit Scheme
- Indira Gandhi National Widow Pension Scheme (IGNWPS)
Choose the correct answer from below:
(a) 1, 2 and 3
(b) 2 Only
(c) 1 and 3 Only
(d) 3 Only
Answer: A
Q.2 Consider the following statements regarding Comptroller and Auditor General (CAG):
- No funds can be accessed from the public exchequer without the authorization of the Comptroller and Auditor General (CAG).
- He serves at the pleasure of the President.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: D
Q.3 Discuss the role and significance of the Comptroller and Auditor General (CAG) in ensuring financial accountability and transparency in government expenditure.
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