India is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF projection. However, it has been observed that in some sectors, allocated funds remain either under-utilised or misutilised. What specific measures would you recommend for ensuring accountability in this regard to stop leakages and gaining the status of third largest economy of the world in near future?

6(b) India is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF projection. However, it has been observed that in some sectors, allocated funds remain either under-utilised or misutilised. What specific measures would you recommend for ensuring accountability in this regard to stop leakages and gaining the status of third largest economy of the world in near future?

India’s rise to the fourth-largest economy signals great potential, but growth without ethical financial governance risks being unsustainable. Strengthening accountability in fund utilisation is the bridge between economic numbers and real progress toward becoming the third-largest economy with legitimacy and fairness.

Sectors Where Allocated Funds Remain Either Under-Utilised Or Misutilised 

1. Urban Development – PMAY (U): ₹30,170.61 crore was allocated, only ₹13,670 crore was actually spent. (Under-utilisation of funds)
2. Labour Welfare Fund – Delhi: In Delhi,  ₹5,200 crore remained idle in the Labour Welfare Fund.
3. Ghost Toilets Scam (Gujarat): Misutilisation of 2 crore rupees.

Specific Measures For Ensuring Accountability in Usage Of Funds

• Technological Tools: Use of PFMS, Direct Benefit Transfer, blockchain and AI to track funds in real time and prevent leakages.
• Outcome-based Budgeting: Funds linked to results (schools built, jobs created) rather than just amounts spent.
• Social Audits & Citizen Oversight: Community monitoring of schemes like MGNREGA to prevent ghost beneficiaries.
• CAG & Vigilance Mechanisms: Regular audits and fixing accountability for misuse.
• Capacity Building: Train local bodies and officials to plan, utilise and report fund use ethically.
• Whistle-blower Protection: Encourage reporting of corruption without fear of retaliation.
• Role Models in Governance: Promote ethical leaders like E. Sreedharan for inspiration.
• Empathy & Moral Courage: Strengthen resistance to corruption pressures.
• Virtue Ethics: Cultivate prudence, frugality, and compassion in fund use.
• Utilitarianism: Allocate resources to maximize collective welfare, avoid wasteful populism.
• Deontological Duty: Adhere to financial rules, prevent discretionary misuse.

Measures For Gaining The Status Of Third Largest Economy

• Proper use of labour welfare funds uplifts informal workers with better housing, healthcare, and skills
• Transparency (PFMS, blockchain, social audits) ensures reduced corruption → boosts investor confidence (both domestic and foreign).
• Utilisation of funds in education, skill training, and social sector builds capable human resources.
• Embedding integrity, accountability, and justice ensures that every rupee is used for public good
• Ethical Governance reduces fiscal waste, strengthens social trust, and builds stable institutions, which are vital for sustained double-digit growth

By plugging leakages and ensuring ethical, transparent, and efficient fund utilisation, India will:

• Unlock stalled development in housing, infrastructure, labour welfare, and mining communities,
• Strengthen its domestic demand base,
• Attract greater global investment, and
• Ensure inclusive, sustainable, and ethical growth.

These measures will not just make India the third-largest economy numerically, but also an economy of trust and accountability, setting a model for other developing nations.

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