Government Report Exposes Fund Mismanagement and Proposes Bold Reforms
The 161st Report by the Department of Administrative Reforms and Public Grievances (DARPG) has highlighted major inefficiencies in government fund usage. It also proposed sweeping changes to pension systems, grievance handling, and digital governance. Several key recommendations aim to streamline processes and improve transparency across ministries and states. The report flagged persistent under-utilisation of funds across 28 budget heads within the DARPG. To address this, it suggested shifting from broad financial estimates to detailed, phased implementation plans. An award system was also proposed to recognise ministries that keep spending close to their budget forecasts.
A major focus was on improving pension and retirement processes. The Committee recommended a Welfare Inspector System, modelled on the Railways' approach, to assist retiring employees. It also pushed for a centralised digital clearance system, allowing retirees to obtain all No Objection Certificates (NOCs) electronically. Awareness drives were proposed to help retired artisans and rural elderly use face authentication for Digital Life Certificates (DLCs). For grievance redressal, the report stressed the need for deeper analysis rather than treating complaints as mere statistics. It called for root cause investigations to tackle recurring issues. Additionally, an AI-powered Multimodal Multilingual Assistant was suggested to upgrade the NextGen CPGRAMS platform. The Committee further recommended expanding the District Good Governance Index (DGGI) to all states, with special attention to Aspirational Districts. A study was also advised to explore why migration from the National Pension System (NPS) to the Unified Pension System (UPS) has been slow.
The report's findings point to systemic gaps in fund management, pension services, and digital governance. If implemented, the proposed reforms—such as digital NOCs, AI-assisted grievance systems, and phased budgeting—could improve efficiency and accountability. However, no state has yet fully adopted the District Good Governance Index, indicating a potential hurdle in nationwide rollout.
