2026 · Q24
Which one of the following systems has been adopted by the Government of India to improve cash management, reduce idle balance, enhance transparency and strengthen expenditure efficiency as a major public financial management system reform?
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- APaper-Based Clearing System
- BDecentralized Account Management System
- CJust-in-Time Fund Release System
- DAsset Management and Tracking System
Explanation
The Government of India adopted the Just-in-Time fund release system — implemented through the Single Nodal Agency (SNA) and Treasury Single Account models on PFMS — under which funds flow to schemes only when actually needed. This eliminates large idle balances parked with implementing agencies, enhances transparency and strengthens expenditure efficiency. It is the flagship public financial management reform for cash management, unlike the paper-based or decentralised options listed.