Unspent Central funds to states to be settled in real time from Apr 1

Settlement of the unspent amount from the funds that the Centre sends to states through the single nodal agency (SNA) will happen within a day from April 1, eliminating the need to park it outside the government account for more than 24 hours...

The SNA account is used for transferring funds to states for centrally sponsored programmes and there are timelines for the expenditure..

The Department of Expenditure and the Reserve Bank of India are working together to upgrade the SNA system to settle the unused amount by the states in real time, which will also eliminate disputes over the payment of interest earned on such unspent funds lying in state SNAs, officials in the know said...

With most of the states not complying with the communication sent to them on sharing of the interest, the Centre has said unless the states pay the interest by March 31, it would not release the 50-year interest free loans offered to them..

Last year, finance secretary TV Somanathan said how data analytics helped the Centre detect that some states were parking money from SNA accounts to some other bank accounts, which was prohibited..

You might be interested in