Answer Writing

English Hindi

Question: Effective utilization of public funds is crucial to meet development goals. Critically examine the reasons for under-utilization and mis-utilization of public funds and their implications.


Answer: The main problem currently faced by public is under-utilization of funds. In this era of lack of funds, proper and appropriate usage of money becomes utmost important.


Reasons for under-utilization and mis-utilizations of funds

  • Corruption
    The large sum of money earmarked fro public activities are taken away by officials as well as politicians in form of bribes. This results in funds not able to contribute towards development.
    Ex: Money allocated for construction of houses for poor is consumed by corrupt officials.
  • Political rivalry
    Sometimes political class indulges in act of vendetta where they do not cooperate in allocation or release of funds to their opposition. They hope to reap the anger against their opponents for their political gains.
    Ex: Government in power not allocating developmental funds to opposition MLAs.
  • Diversion
    The funds allocated to one activity is diverted to another in order to meet strict control over finanaces.
    Ex: Funds allocated to road repair is diverted to giving freebies.
  • Red Tapism
    Colonial bureaucratic attitude sometimes acts as hinderance in carryiong out developmental activities. They complicates the process due to which funds are not properly utilized.


  • Public apathy
    The public is made to suffer due to under/mis-utilization of funds. The rightful funds do not result in any welfare for society.
  • Rise to extremism
    The problems of Naxalism, Maoism are a product of such apathy shown by the authorities. The funds even though allocated by government, do not reach people.
  • Instability
    This cycle of vendetta politics result in stalling of political progress in the society. The political blame game results in only instable conditions but does not prove fruitful for the society.

Thus, it is necessary to ensure that the allocated funds reach the public appropriately so that hard-earned tax payers money is put towards a better cause.

Updated on 10 Oct 2019 |   Added on .08 Oct 2019  |  by admin