Untied Performance Based Fiscal Transfer

Component 1: Untied performance based fiscal transfer

Untied performance based fiscal transfer supports an annual, performance based block grant GPs for creation of sustainable public goods and citizen centric services. GPs have to qualify in four Minimum Mandatory Conditions (MMCs) and attain a minimum qualifying score in the Annual Performance Assessment (APA) conducted by an independent agency to receive this grant. The score-based assessment system has ensured incremental improvement in all institutional parameters as indicated by the increase in proportion of GPs qualifying in each MMC;

  1. Timely preparation and approval of Integrated Plan & budget – from 72.5% in 2010-11 to 100% in 2015-16,
  2. Timely and quick utilisation of untied grants – from 48.3% in 2010-11 to 89% in 2015-16,
  3. Clean external (CAG) audit report – from 99.5% in 2010-11 to 99.7% in 2015-16 but with 400% increase in discretionary funds during this period and,
  4. Timely digitisation and upload for public view of financial transactions (through GPMS (departmental MIS) by GP – from 52.5% in 2010-11 to 100% in 2015-16.

The utilisation of ISGP block grant has been on the increase in each of the project years with the current utilisation by the GPs at 96%. The major reason for this is the predictability and timeliness of the grant allocation. The quantum of funds allocated to qualifying GPs is communicated through system generated SMS and a Govt. order is issued communicating the quantity of grant allocation to qualifying GPs during October each year which enables them to prepare a realistic Integrated action plan and it is synchronized with the planning cycle. Another reason for increased utilization is the reduction in lead time in fund flow from state to GP and which has come down from 25 days in 2011 to 3 days in 2015. The GPs receive the entire amount in one single tranche at the beginning of each financial year.

The average investment per activity from all untied grants excluding block grant has increased from Rs.0.14 lakhs in 2011-12 to Rs. 1.9 lakhs in 2015-16 while the average expenditure per activity from ISGPP block grant has increased from Rs.0.44 lakhs in 2011-12 to Rs.3.75 lakhs in 2015-16, showing an increase of 400% and 850% respectively during last three years.

Subhrapratim De is a Data Entry Operator (DEO/VLE) under MGNREGA Scheme. He is working at the ground level (Gram Panchayat) since 2008 in West Bengal. He has strong background knowledge of computer system, network and operating system. He has knowledge of programming and databases too. Lastly he is a part time blogger.

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DEO West Bengal