Fund Release Procedure for CSS 2022
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AnupamFund Release Procedure for CSS 2022
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Powered by AIThe Ministry introduced the check because considerable delays were observed in transferring the central share from State Treasuries to the Single Nodal Agency's (SNA) accounts. These delays hinder effective fund utilization and monitoring, prompting the ministry to enforce the check to ensure compliance and timely fund transfers .
The Finance Secretary approved the implementation of the new procedures that involve the operationalization of checks in the PFMS. This approval signifies an endorsement at the highest level of the Ministry’s administration, ensuring that the procedures align with overarching financial policies and strategy .
The procedure changes were communicated to all Secretaries to the Government of India, all Financial Advisors, all Principal CCAs/CCAs of all Ministries/Departments, Chief Secretaries, and Principal Secretaries Finance of all States/Union Territories. Additionally, information was directed to various officials within the Office of the Controller General of Accounts .
Starting 1st April 2022, a procedural change was instituted whereby if a previous instalment of central share released by the Government of India had not reached from the State Treasury to the Single Nodal Agency's (SNA) account, subsequent sanction orders for the next instalment would not be generated. This check is operationalized in the Public Financial Management System (PFMS) to ensure timely fund transfers .
The directive addresses delays by instituting a system that halts further financial sanctions until funds from prior allocations have been transferred to the designated SNA accounts. This preventive measure ensures state compliance with established timelines and mitigates risks of fund misappropriation or mismanagement, leveraging the PFMS to monitor and enforce financial discipline effectively .
If a state fails to transfer the central share funds to the SNA's account within the required 21-day period, it will face delays in receiving subsequent funding as the PFMS will block the generation of sanction orders for future instalments. This can lead to interruptions in fund flow and affect project execution and funding schedules .
The PFMS check will enhance efficiency by preventing further fund releases until previous funds have been successfully transferred to the corresponding SNAs. This ensures state compliance with prescribed fund transfer timelines, encouraging more disciplined financial management. It also improves transparency and accountability, facilitating better monitoring and utilization of funds across centralized schemes .
The new PFMS check impacts the process by linking the generation of sanction orders for subsequent instalments to the successful transfer of previous instalments to the SNA's account. If the previous funds have not reached the SNA as required, subsequent sanction orders will not be generated. This change ensures accountability and adherence to timelines in fund transfers, thereby improving fund management and utilization .
The implementation of the new fund release procedure involved notifying all secretaries to the Government of India, all Financial Advisors to the Government of India, and all Principal Chief Controller of Accounts/Chief Controller of Accounts of all Ministries/Departments. The Additional Controller General of Accounts was requested to operationalize the necessary check in the PFMS. Moreover, Chief Secretaries and Principal Secretaries Finance of all States and Union Territories were informed .
States are required to transfer the central share funds received in their Reserve Bank of India (RBI) account to the Single Nodal Agency's (SNA) account within 21 days of receipt as per the new guidelines .