{"id":93362,"date":"2026-03-18T10:12:26","date_gmt":"2026-03-18T04:42:26","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=93362"},"modified":"2026-03-18T12:44:20","modified_gmt":"2026-03-18T07:14:20","slug":"financial-planning-niti-aayog","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/financial-planning-niti-aayog\/","title":{"rendered":"Parliamentary Panel Flags Poor Financial Planning by NITI Aayog"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Financial Planning Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A Parliamentary Standing Committee has criticised financial planning by NITI Aayog and the Ministry of Planning for persistent underutilisation of budgetary allocations.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Role of NITI Aayog in India\u2019s Governance<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/niti-aayog\/\" target=\"_blank\">NITI Aayog<\/a><\/strong> (National Institution for Transforming India) serves as the government\u2019s premier policy think tank.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Established in 2015, it replaced the Planning Commission with the objective of promoting cooperative federalism and evidence-based policymaking.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its key functions include:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Designing long-term policy frameworks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Monitoring and evaluating government schemes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Providing strategic and technical advice to the Centre and States<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Facilitating innovation and development initiatives<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Although NITI Aayog does not directly allocate funds like the erstwhile Planning Commission, it plays a crucial role in shaping development priorities and ensuring efficient utilisation of public resources.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Parliamentary Committee\u2019s Observations<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Parliamentary Standing Committee on Finance has raised serious concerns regarding financial management by the Ministry of Planning and NITI Aayog.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Committee found that the Ministry consistently spent significantly less than the budget allocated to it. Key findings include:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">In <\/span><b>2023-24<\/b><span style=\"font-weight: 400;\">, actual expenditure was about <\/span><b>Rs. 290.81 crore<\/b><span style=\"font-weight: 400;\"> against a Budget Estimate (BE) of Rs. 824.39 crore (around 35%).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">In <\/span><b>2024-25<\/b><span style=\"font-weight: 400;\">, expenditure stood at <\/span><b>Rs. 282.61 crore<\/b><span style=\"font-weight: 400;\"> against a BE of Rs. 837.26 crore (around 34%).\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This pattern indicates a structural issue in planning and execution, where funds remain idle instead of being effectively utilised.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rising Budget Allocations Despite Low Spending<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Despite the low utilisation rates, the Ministry continued to seek higher allocations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The Ministry requested <\/span><b>Rs. 1,203.38 crore for 2026-27<\/b><span style=\"font-weight: 400;\">, which is about <\/span><b>22% higher<\/b><span style=\"font-weight: 400;\"> than the previous year\u2019s allocation.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Committee questioned this trend, noting that increasing allocations without proper utilisation reflects poor fiscal discipline.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Weak Implementation and Planning Gaps<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Committee highlighted that the problem is not merely financial but also administrative.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">There is dismal implementation of planned activities on the ground.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The Quarterly Expenditure Plan (QEP) shows persistent gaps between planned and actual spending.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This indicates that schemes and initiatives are either delayed or inadequately executed.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Issues in Expenditure Management<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One major concern raised by the Committee is the tendency to spend large amounts in the final quarter of the financial year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In <\/span><b>2025-26<\/b><span style=\"font-weight: 400;\">, a significant portion of spending was projected in the fourth quarter.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This creates a \u201crush to exhaust funds,\u201d which can compromise the quality of expenditure.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Such practices may also violate government norms that aim to distribute spending evenly throughout the year.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Violation of Fiscal Discipline Norms<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Central government has guidelines to ensure balanced expenditure patterns, including limits on monthly spending.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Committee warned that excessive spending in the last quarter may breach these norms, leading to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Inefficient allocation of resources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Reduced accountability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Poor outcomes from public expenditure<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Recommendations by the Committee<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-weight: 400;\">The Parliamentary panel has made several recommendations to improve financial management.<\/span><\/li>\n<li aria-level=\"1\"><b>Realistic Budgeting<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Accurate estimation of expenditure<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Avoiding inflated budget demands<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Aligning allocations with actual requirements<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Strengthening Monitoring Mechanisms<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Conduct regular internal reviews<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Ensure timely administrative approvals<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Synchronise planning with expenditure targets<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Better Utilisation of Funds<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Avoid idle funds and resource blocking<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Ensure the timely implementation of schemes<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Improve coordination between planning and execution<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Broader Implications for Governance<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The issue of underutilisation of funds reflects deeper challenges in public financial management in India.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Impact on Development Outcomes &#8211; <\/b><span style=\"font-weight: 400;\">Inefficient use of funds can delay development projects and reduce the effectiveness of government programmes. This ultimately affects service delivery and economic growth.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Fiscal Responsibility and Accountability &#8211; <\/b><span style=\"font-weight: 400;\">Proper financial planning is essential for maintaining fiscal discipline. Persistent underutilisation, coupled with rising allocations, undermines accountability in public spending.<\/span><\/li>\n<\/ul>\n<p><b>Source :<\/b> <a href=\"https:\/\/www.thehindu.com\/business\/Economy\/parliamentary-panel-rebukes-ministry-of-planning-niti-aayog-for-poor-financial-management\/article70753788.ece\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">TH<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The issue of financial planning by NITI Aayog has come under scrutiny as a Parliamentary panel highlights underutilisation of funds.<\/p>\n","protected":false},"author":21,"featured_media":93371,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[6161,60,22,59],"class_list":{"0":"post-93362","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-financial-planning","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/93362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=93362"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/93362\/revisions"}],"predecessor-version":[{"id":93420,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/93362\/revisions\/93420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/93371"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=93362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=93362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=93362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}