The Government of India has improved public financial management by using technology to make fund usage more transparent, accountable, and efficient. One key initiative is the SNA SPARSH system, which changes how funds for Centrally Sponsored Schemes (CSS) are managed and tracked.
SNA SPARSH stands for Single Nodal Agency – Smart Payment and Accounting of Resources for State Hierarchy. It’s not just about moving money but a complete system to release funds on time, track them in real-time, and ensure better financial management for CSS.
Background and Need for SNA SPARSH
Before SNA SPARSH, the fund flow for CSS had issues like:- Funds passing through many levels (Centre → State Treasury → Directorate → District → Implementing Agency)
- Delays in transferring funds and multiple bank accounts
- Funds sitting unused at different levels
- Lack of clarity on how funds were used
To fix these problems, the Ministry of Finance introduced the SNA model in July 2021 for all CSS. The SPARSH platform was created to digitally track and manage funds across states.
What is SNA SPARSH?
SNA SPARSH is a tech-based system that sends funds directly from the Central Government to a Single Nodal Agency (SNA) in each State or Union Territory for each CSS. From there, funds go to Implementing Agencies (IAs) using the Public Financial Management System (PFMS).Key Goals:
- Release funds when needed
- Track fund usage in real-time
- Avoid unused funds and reduce losses
- Increase transparency and accountability
- Make CSS implementation faster and better
How SNA SPARSH Works
- Single Nodal Agency (SNA): Each State picks one agency to manage funds for each CSS.
- SNA Bank Account: The SNA opens a special bank account linked to PFMS, ideally with zero balance or funds added only when needed.
- Fund Release by Centre: The Central Government sends funds to the SNA account after checking Utilization Certificates (UCs) and spending data on PFMS.
- Funds to Implementing Agencies: The SNA sends funds to district agencies, NGOs, or field units based on approved plans, using PFMS for tracking.
- Tracking and Reporting: All spending is recorded in PFMS for real-time monitoring. Reports are available for audits and reviews.
Technology Support – PFMS
The Public Financial Management System (PFMS) powers SNA SPARSH by:- Tracking funds from the Centre to the final beneficiary
- Matching bank data in real-time
- Using geo-tagging, Aadhaar, and e-signatures for accountability
- Providing dashboards for Ministries, States, and agencies
Benefits of SNA SPARSH
- Transparency: See fund usage at every level in real-time
- Efficiency: No delays or unused funds
- Accountability: Clear records for audits and better financial control
- Equity: Funds reach where they’re needed based on actual use
- Better Decisions: Centralized dashboards help with planning
Challenges and Delays
Even though SNA SPARSH aims for efficiency, some issues can slow down fund movement:- Administrative Delays: Slow approvals at State or SNA level
- Technical Issues: Problems with PFMS-bank integration
- Incomplete Documents: Delayed submission of UCs or fund requests
- Lack of Training: Staff at district or SNA level may need more skills
Typical Delays:
- Centre to SNA: 1–3 days (can take up to 7 days)
- SNA to IA: 1–2 days (can take up to 5 days)
- IA to Vendor/Beneficiary: Instant (can take 2–3 days if issues arise)
Recent Updates
- Mobile apps for field-level data entry and monitoring
- Real-time alerts for fund release updates
- Auto-reconciliation to reduce manual work
- Geo-tagging of assets created under CSS
0 Comments