STATES TO BE RANKED ON FINANCIAL MANAGEMENT INDEX (FM') FOR RURAL DEVELOPMENT

STATES TO BE RANKED ON FINANCIAL MANAGEMENT INDEX (FM') FOR RURAL DEVELOPMENT 

• FMI (by Ministry of Rural Development) ranks the performance of the States based on certain parameters: 
• Preparation of annual plan, the expeditious release of State's share, timely utilization of the funds and submission of the Utilization Certificates, etc. 
• Optimum implementation of Public Financial Management System (PFMS) & Direct Benefit Transfer. 
• PFMS is a web-based platform that helps in tracking and monitoring of flow of funds to the implementing agencies. 
• Internal Audit and Social Audit. 
• The benefit of the index 
• Bring in transparency and promote the spirit of competitive, cooperative federalism. 
• Optimum utilization of the funds to ensure efficient implementation of the programs by State Governments. 
• Effective use of funds for the development works at the village level. 
• Check any irregularities through the audit process. 
• On similar lines, recently Ministry of Panchayati Raj has also decided to conduct an online audit of 20% of the estimated 2.5 lakh gram panchayats across the country. 
• It is to be conducted through AuditOnline, an open-source application under the e-panchayat Mission Mode Project by the Ministry of Panchayati Raj. 
• It will ease access to records, can be monitored at the district, state, and Centre level.