The just-in-time release of funds implemented by the government through the Treasury Single Account System (TSA) for autonomous bodies and the Single Nodal Agencies (SNAs) model for states have saved the Centre nearly Rs 26,000 crore in interest costs since FY18 as borrowings were linked to the actual requirements, finance minister Nirmala Sitharaman said at an event on Saturday.

Speaking at the same event, 16th Finance Commission chairman Arvind Panagariya said that, based on the past performance of the economy in US dollar terms, India will be able to become a developed nation by 2047.
With the implementation of the Central Nodal Agency (CNA) for central sector schemes, SNA for centrally-sponsored schemes and TSA for autonomous bodies, the Centre is now able to track funds flow till the end-user.

With all these payment systems linked to the overarching Public Financial Management System (PFMS), the Centre analyses the real-time funds available in schemes and next installment can’t be booked until the previous releases have been used.
Lower floating of funds helps the Centre calibrate borrowings and save on interest costs.

“The TSA, a system in autonomous bodies, has alone saved more than Rs 15,000 crore in interest costs since 2017-18. This has been done without any additional burden on the taxpayers. SNA has saved more than Rs 11,000 crore since 2021-22,” Sitharaman said, appreciating the efforts of officers on the 49th Civil Accounts Day celebrations here.

Unspent balance parked in more than 1.5 million bank accounts of implementing agencies across India was consolidated into 4,500 bank accounts of SNAs, bringing greater transparency.

“’Just-in-Time’ fund releases have helped us to ensure that we don’t borrow more than what we need. It has also given us an advantage in making sure to lessen the burden on future generations,” she said.

Addressing the civil accounts officers, Panagariya said India’s high economic growth trajectory since 2003-04 saw the country growing on an average 7.8% till 2023-24 at constant dollar terms and 10.1% at current dollar terms.

At this pace, he said India is well poised to become a developed nation by 2047-48 with its per capita income by meeting the World Bank’s criteria. A high-income economy is defined by the World Bank as a country with a gross national income per capita of $14,005 or more in 2023.