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ITS 2025: Mentorship cum Integrated Test Series (Prelims and Mains). Get Details

Public Administration Optional (Financial Management ( Paper 2)) by Abhishiekh Saxena

Instruction:

  • There will be 2 questions carrying the First Question is-10 marks Write your answers in 150 words and the Second Question is-15 marks Write your answers in 250 words.
  • Any page left blank in the answer-book must be crossed out clearly.
  • Evaluated Copy will be re-uploaded on the same thread after 2 days of uploading the copy.
  • Discussion of the question and one to one answer improvement session of evaluated copies will be conducted through Google Meet with concerned faculty. You will be informed via mail or SMS for the discussion.

Question #1. Performance Audit can only be performed if the project had been budgeted based on performance. Comment. 10 marks (150 words)

Question #2. What is a participatory budget? How it enriches democratic decentralization? 15 marks (250 words)

 

(Examiner will pay special attention to the candidate's grasp of his/her material, its relevance to the subject chosen, and to his/ her ability to think constructively and to present his/her ideas concisely, logically and effectively).

Model Answer

Question #1. Performance Audit can only be performed if the project had been budgeted based on performance. Comment.  10 marks (150 words)

Approach:
•    Briefly about performance budgeting and auditing.
•    Link the two, use examples.
•    Conclude.

The efficiency and effectiveness of resource utilisation by the government is ensured by the tools of auditing and budgeting. Budgeting is the process of estimating the revenue and expenditure of the government.


Performance audit reviews management of an organization or program and whether it is achieving its objectives effectively, economically and efficiently. Sometimes called “Value for money” audits, they advise whether the value is received for the money being spent. The evolution of the utilisation of resources against the goal achieved.
Performance budgeting refers to the budgeting mechanism where financial resources are allocated by linking them to outputs. Strategies to achieve the desired outcomes and the unit cost of activities is also defined elaborately. It presents a comprehensive picture of what has been the result of the funds allocated.


Performance auditing can only take place when we know the inputs expected outputs, strategies used and unit cost of each activity. Which was laid down through the performance budget. In case of absence of such targets (or parameters) the evaluation of the policy or programmes is elusive. The Performance auditing is evolution of outcome which is only possible if the target is pre-defined through the performance budget.

 

Question #2. What is a participatory budget? How it enriches democratic decentralization? 15 marks (250 words)

    Approach:
    •    Describe PB.
    •    Highlight its importance viz-a-viz democratic decntralisation.

    •    “Participatory Budgeting” is a concept that was pioneered in the Brazilian city of Porto Alegre in the mid-1980s. It is now practised in one form or other in thousands of cities around the world.
    •    Participatory budgeting (PB) is a process of democratic deliberation and decision-making, in which ordinary people decide how to allocate part of a municipal or public budget.
    •    More recently the MyCityMyBudget campaign, first launched in 2015, is gathering traction in Bengaluru, Mangaluru and Visakhapatnam, as a collaborative effort between respective city corporations and neighbourhood communities. 
    •    In these cities, over 85,000 budget inputs have been crowdsourced from over 80,000 citizens in over 350 wards on a wide range of civic issues. These inputs will be reviewed and incorporated into the city budget. 
    Merits of Participative Budgeting
    •    First Step towards responsive governance: This is significant because in the government system, allocating budgets is the first step towards getting any piece of work done. 
    •    Local Solutions:  It facilitates a targeted, hyperlocal focus on budgeting and problem-solving.
    •    Enhances Political & Public Trust:  It makes citizens feel like they have a voice in civic governance and thereby builds trust
    •    Improves Efficiency: It addresses inefficiencies arising from misplaced prioritisation of civic works relative to citizen needs. 
    •    Increased Accountability: Finally, it improves accountability for civic works at the last mile (as citizens would monitor budget execution).
    •    Inclusive Governance: Children, women, senior citizens, the differently-abled and several interest groups would be able to make a case for their causes and aspirations in Municipal Budget through direct representations and have them fulfilled
    •    Helps in better maintenance of assets: This would foster far greater ownership in communities for civic assets and amenities, thereby resulting in better maintenance and upkeep. At the local level, it is a win-win for communities, elected councillors and the city administration.
    •    Strengthens Grassroots Democracy: Unlike the Union budget, the municipal budget is not just a financial or legal document. It can be an enabler of grass roots democracy in cities and tangible change for communities particularly children, women and the urban poor. 

    We need greater degrees of citizen engagement and media engagement on Municipal budgets for them to become instruments of real change at a street, neighbourhood and ward level.

    Procedure of Answer Writing:

    To participate in the answer writing program, Register yourself for the test. Copies will be evaluated only for the registered students. Registration will be closed after the scheduled date.

    Answer Writing, Copy Evaluation, and Marks Improvement Cycle:

    Step 1 (Theme, Details & Its Topics):

    1. Every round of Answer writing initiative will be around a theme related to the Subject/Topic.
    2. Please read the theme and its description, and try to cover the topics given within the theme before writing the answer along with the sources.

    Step 2 (Answer Writing):

    1. Questions will be uploaded on the portal on the scheduled date at 7:00 AM.
    2. You have to write your answers on an A4 size sheet leaving margins on both sides based on the UPSC pattern.
    3. Mention your name, email id, location, and phone number on the 1st page in the top right corner and the page number on each page.
    4. After writing the answers, Click pictures of each page of your answer sheet, merge them all in a single PDF and upload them in the upload section of the same question.
    5. Kindly submit your written answers before 7:00 PM. Only the first 100 copies will be considered for evaluation. No request for late submission or evaluation will be entertained once the 100 mark is reached.

    Note: Answer sheets without the proper guidelines given above will not be accepted for evaluation.

    Step 3 (Copy Evaluation): Copies will be evaluated in the next 72 hours of the test date. After evaluation, copies will be uploaded into your account. During the copy evaluation period, doubt clearing and discussion about the theme or topic of the test with respective mentors of the test will be done in the telegram group

    Step 4 (Mentorship): Evaluated copies will be sent to you via mail and also uploaded into your account on the website. After that a mentorship session for the marks improvement with respective faculty will be conducted on the Google Meet, so that students can get a wider perspective of the topics. Here you can discuss your evaluated copies also with the faculty. Top 5 copies of every test will be shared in the telegram group for reference.

    Note: Aspirants who have not written the test can also participate in the mentorship session.

    For Updates and Mentorship of the session, you will be notified through SMS or Telegram Group.

    For Notification And Update About the Program Join Telegram Group at: https://t.me/gsscoreopendailyanswerwriting

    Note: You have to write your answers on an A4 size sheet leaving margins on both sides based on UPSC pattern. Mention Your Name on 1st page and Page Number on each page. After writing the answer, Click pictures of each page of your answer sheet, merge them all in a single PDF and upload in the Your Answer Copy section of the same question.

    Copy submission is closed now for this test.

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