BENGALURU: In a game-changing and controversial decision, the Karnataka government has issued a new directive that will send shockwaves through state-run boards and corporations: All expenditure, no matter how small, will now require prior approval from the Finance department. This unprecedented move, which includes even routine expenses like power bills and rental payments, will redefine how public funds are handled in the state.
The announcement comes on the heels of the Valmiki Corporation scam, which revealed a web of corruption where large sums of taxpayer money were diverted by corrupt officials for personal gain. The scandal also exposed serious flaws in the system that allowed widespread financial irregularities. Faced with public outrage, the government finally decided to check corruption to restore the people’s trust.
By demanding that even the smallest of payments be scrutinized and cleared by the Finance department, the government is sending a message that no one is above accountability, and every rupee spent by state boards and corporations will have to be accounted for.
The announcement is aimed at quelling public dissatisfaction and restoring faith in the financial management system. “This is necessary to ensure such financial misdemeanours are not repeated,” a senior official involved in the decision-making process said.
The decision is expected to overhaul the way state-run organizations manage funds, with checks and balances being added to every financial transaction. The increased transparency and scrutiny is likely to shake up long-standing practices within the institutions, and could lead to a complete rethinking of how budgets are managed and funds are disbursed.
However, there are many critics questioning the practicality of the move, and argue that while the intent is noble, implementation could be cumbersome.
An expert who has decades of experience in public finance, expressed concern over the potential for bureaucratic paralysis. “This is a knee-jerk, reactionary measure that could burden the finance department. Imagine the sheer number of boards and corporations submitting the smallest payment requests for approval, it is going to be a logistical nightmare. Dozens of daily transactions will need to go through a central office. It could slow down essential services and cripple efficiency,” the expert warned, on condition of anonymity.
Critics argue that the measure will involve unnecessary red tape. “Boards and corporations already have their own bank accounts, and for larger organizations, complying with this new rule could be a logistical and financial disaster,” he added.