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CAG Report Reveals Misuse of NSAP Pension Funds

Article Title:

National Social Assistance Programme (NSAP): Irregularities and Welfare Implications

The National Social Assistance Programme (NSAP), a flagship welfare scheme of the Indian government, has been under scrutiny following the release of a performance audit report by the Comptroller and Auditor General of India (CAG). The audit, which covered the period 2017-18 to 2020-21, uncovered several irregularities and lapses in the planning, financial management, implementation, and monitoring of NSAP.

Key Highlights from CAG Report

One startling revelation from the CAG report was the diversion of pension funds meant for NSAP towards publicity campaigns for other Ministry of Rural Development (MoRD) schemes. The report revealed instances of such fund diversion at both the ministry and state/Union Territory (UT) levels.

Furthermore, the CAG observed discrepancies in the advertising work orders. The advertisements omitted mention of NSAP schemes while highlighting others like Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY).

Six states – Rajasthan, Chhattisgarh, Jammu & Kashmir, Odisha, Goa, and Bihar – were identified as diverting funds meant for pension schemes.

Impact of Fund Diversion on NSAP Beneficiaries

The irregularities adversely impacted planned Information, Education, and Communication (IEC) activities under NSAP. Funds originally allocated for NSAP IEC were diverted towards promoting other ministry schemes. This fund diversion and misappropriation have severe implications for the program’s beneficiaries.

About the National Social Assistance Programme (NSAP)

Launched on 15th August 1995, NSAP is a Centrally Sponsored Scheme designed to support underprivileged individuals such as aged persons, widows, disabled persons, and bereaved families of primary income producers from below-poverty-line households. NSAP comprises five sub-schemes including the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), and more, each specifically catering to a segment of society.

NSAP’s Implementation and Impact

NSAP is administered by the Ministry of Rural Development in concert with state/UT governments. The funds are transferred directly to beneficiaries’ bank or postal accounts using Direct Benefit Transfer (DBT). The NSAP web portal offers a host of information on guidelines, reports, circulars, grievance redressal, etc. The scheme has proven instrumental in reducing poverty and improving the standard of living among vulnerable sections of society. Annual statistics suggest approximately 4.65 crore beneficiaries rely on NSAP benefits annually.

The Role of the Comptroller and Auditor General of India (CAG)

The CAG, an independent constitutional authority, is the Indian audit & account department’s head and the chief guardian of the public purse. The institution holds the government and other public authorities accountable for public fund expenditure. Following his tenure, the Comptroller and Auditor General is not eligible for office under either the Government of India or any State Government. Specific articles of the Indian constitution provide for an independent office of the CAG, highlighting its crucial role in maintaining accountability and ensuring transparency in the government’s functioning.

Understanding the Importance of CAG through UPSC Civil Services Examination Questions

Previous Union Public Service Commission (UPSC) Civil Services Examination questions have sought to gauge comprehensive knowledge of the CAG’s powers, appointment methods, and role in policy implementation. The questions underscore the auditor’s integral role in securing responsible and transparent usage of public funds. The role of the CAG in auditing the National Social Assistance Programme is a testament to its function as an oversight body ensuring efficiency, accountability, and integrity in public expenditure.

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