Just-in-Time Funding Curbs Rs 1 Lakh Crore 'Parking' in State Treasuries: Expenditure Secretary

• Vumlunmang Vualnam, Expenditure Secretary, states 'just-in-time' funding reduces interest burden and optimizes borrowing.
• The SNA SPARSH portal, operational since late 2024, has onboarded 50 central schemes, ensuring funds reach beneficiaries directly.
• Previously, Rs 1 lakh crore annually was 'parked' in state treasuries, leading to the Centre bearing borrowing costs; this has now been significantly reduced.
• The government is reviewing Centrally Sponsored Schemes, with some expected to merge or close in the next financial year based on impact assessment.
• The VB: G RAM G Act is clarified as 'demand-driven,' similar to MGNREGA, providing guaranteed employment for 125 days per household.

Why It Matters: Just-in-time funding and the SNA SPARSH portal have significantly reduced the Centre's interest burden.