Effective utilization of public funds is crucial to meet development goals. Critically e examine the reasons for under-utilization and mis-utilization of public funds and their implications. (150 words).

Ethics
Ethics: Theory
2019
10 Marks

Effective public fund utilization is crucial for achieving socio-economic development, ensuring resources reach intended beneficiaries and maximizing public welfare, aligning with Gandhi's trusteeship principle. However, under-utilization and mis-utilization pose significant ethical challenges.

Reasons for Mis/Under-Utilization

This theme explores factors hindering optimal fund use, violating Kant's categorical imperative of duty towards efficient resource allocation.

  • Bureaucratic Hurdles: Complex procedures and red tape delay project implementation.

    • Example: Environmental clearances for infrastructure projects often face prolonged delays, as seen in the Ken-Betwa river linking project.
  • Lack of Planning: Absence of comprehensive needs assessments and feasibility studies leads to ineffective fund allocation.

    • Example: The midday meal scheme in certain areas faced criticism for inadequate nutritional planning, leading to suboptimal outcomes.
  • Corruption: Misappropriation and embezzlement divert funds from intended purposes, violating Rawls's theory of justice.

    • Example: The 2G spectrum allocation scam exemplifies how corruption can lead to massive losses of public funds.

Implications of Mis/Under-Utilization

This theme examines the negative consequences of inefficient fund management, contradicting the utilitarian principle of maximizing overall well-being.

  • Hampered Development: Under-utilization slows down progress towards developmental goals enshrined in the Indian Constitution's Directive Principles of State Policy.

    • Example: Delays in disbursing funds for rural electrification hinder efforts to achieve universal energy access.
  • Erosion of Public Trust: Mis-utilization breeds cynicism and distrust in government institutions, impacting democratic values.

    • Example: The Commonwealth Games scam eroded public faith in the government's ability to manage large-scale projects.
  • Increased Inequality: Inefficient fund allocation exacerbates existing disparities, violating the principle of distributive justice.

    • Example: Lack of access to quality healthcare due to underfunding in public health systems disproportionately affects marginalized communities.

Effective utilization requires strengthening accountability mechanisms, promoting transparency, and streamlining bureaucratic processes. Citizen participation and social audits can foster responsible governance, ensuring public funds serve their intended purpose and contribute to national development.

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