Govt doesn’t blindly release more funds; we follow a transparent process: FM Sitharaman

Finance Minister Nirmala Sitharaman

• Funds released only when ground-level work demands, not to book expenditure
• SNA SPARSH portal ensures transparency and tracks fund flow to beneficiaries
• No funds slashed for FY27 schemes; every rupee is accounted for, says FM

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We don’t blindly release more funds, we only do it when the ground level work demands more money, Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Thursday.

"We don’t blindly release more (funds), just because we need to book expenditure. We release only when ground level work demands it," Sitharaman said today.

She was responding to oppositions' allegations on Centre slashing funds for centrally sponsored schemes.

"Centre’s funds are not free pool of cash. We refuse to spend it, just because we have to meet a deadline. There’s transparent process, and we have to follow," said the FM.

She noted that due to the SNA SPARSH portal, the government has "absolute visibility where the money goes, where it is spent...just in time, we can release the money to the states – which needs it."

In an exclusive interview to Moneycontrol, earlier this month, Expenditure Secretary V Vualnam said that the SNA SPARSH portal – operational from late 2024 – has onboarded 50 central schemes, which is helping the government track the money, and release it only at the time when it reaches the beneficiary.

"Earlier, money from the Consolidated Fund of India used to go the states' treasury. It used to get parked there, and never got to the intended beneficiary," Vualnam had said, adding that almost Rs 1 lakh crore used to parked with states every year, and the Centre has to bear the burden, which now reduce to almost nil.

Sitharaman said that we have not slashed funds for any schemes for FY27. "Earlier, success was measured by how much money was pushed out of the treasury, regardless of whether it was being spent or not. Thousands of crores used to lay idle in state treasuries," said the FM.

"There is no denial or stoppage of funds to any states or any schemes. It’s an assurance to the taxpayer that every rupee is accounted for," she added.

The FM also said that the government can’t borrow excessively. "We will give money, but we need outcome too."