GS4 · UPSC Mains
Sowmiya is a senior public servant renowned for her integrity and transparency. Currently serving as the Head of the Budget Division in the Finance Ministry, she is responsible for managing budgetary allocations critical to the government's developmental initiatives. Her department is currently organizing financial support to the states, three of which are due to go to the polls within the financial year. In this year's annual budget, the government allocated ₹9,300 crores to the National Electricity Mission (NEM), a centrally sponsored scheme aimed at providing electricity to every remaining household in the country. As of June, ₹1,775 crores had already been disbursed for this initiative. The NEM is pivotal for improving living standards and aligns with the government's broader goal of universal access to electricity. The Ministry of Commerce has been advocating for the establishment of a semiconductor fabrication unit in a southern state. This project is essential for enhancing domestic manufacturing capabilities and reducing dependency on imported semiconductors. After extensive discussions spanning nearly three years among relevant stakeholders, the Union Cabinet approved the establishment of the unit, and the process for acquiring the necessary land has commenced. In alignment with the government's policy toward a green transition, a leading Central Public Sector Enterprise (CPSE) is actively working on establishing a green hydrogen plant in a northeastern state. This initiative is crucial for promoting sustainable energy solutions and achieving the 'panchamrit' targets. The CPSE has already acquired the necessary land for the project. Following three rounds of global bidding, the project was awarded to an MNC, M/s XYZ Hydrocarbons, with the first tranche of payment scheduled for December. The Finance Ministry was asked for an additional allocation of ₹7,000 crores to support the semiconductor fabrication unit and the green hydrogen plant. It was decided to recommend re-appropriating this entire amount from the NEM allocation. The file was forwarded to the Budget Department for their comments and further processing. Upon reviewing the case file, Sowmiya recognized the potential consequences of such a reallocation. Diverting funds from the NEM could significantly delay its implementation, undermining a project that holds political significance and is frequently highlighted in political rallies. Additionally, failing to secure timely funding for the semiconductor unit and the green hydrogen plant could jeopardize these projects and lead to cost overruns. Delayed payment in an international project could send the wrong signals to MNCs about India's commitment to honoring international contracts. Such delays could harm the government's reputation and weaken investor confidence in India's growing green energy sector. Sowmiya discussed the situation with her seniors and received orders to process this politically sensitive issue expeditiously. She realized that diverting funds from the NEM could raise difficult questions for the government in Parliament. On the other hand, these projects are proposed in states where elections are to be held shortly, adding to the urgency of the matter. a. What are the ethical issues involved in re-appropriation of funds from a welfare project to the developmental projects? b. Given the need for proper utilization of public funds, discuss the options available to Sowmiya. Which option should she choose?
GS4 · Aptitude & foundational values for civil service — integrity, impartiality, non-partisanship, objectivity, dedication, empathy, tolerance & compassion GS4 · Case studies on the above issues
| Topper | Rank | Source | Copy |
|---|---|---|---|
| Garima Singh | AIR 92 · 2025 | Forumias | p.6 |
| Sattwik Satyakam Devta | AIR 100 · 2025 | Forumias | p.6 |
| Tushar Chauhan | AIR 216 · 2025 | Forumias | p.33 |