Mint Explainer | How demand-based fund release is improving the Centre's fiscal discipline
Mint·2h ago·Positivity
What Happened
India's Centre implemented SNA-Sparsh in 2021-22, a demand-driven fund release system replacing upfront transfers under centrally sponsored schemes. Integrated with state financial systems and RBI's e-Kuber platform, funds are released only when needed. In FY26, ₹1.14 trillion was released through SNA-Sparsh versus ₹13,851 crore in FY25. The shift reduces advance borrowing, lowers interest costs, improves expenditure quality, and enhances fiscal transparency and efficiency.
Key Entities
SNA-SparshCentrecentrally sponsored schemesRBI e-Kuber platformPFMSFY26FY25statesAbhash Kumar