Ethics, Integrity, and Aptitude 22 — Key Vocabulary

Vocabulary flashcards covering key terms related to public funds, governance, transparency, accountability, and ethical practice discussed in the lecture.

Public funds

Government money allocated for public use, sourced from taxes, public debt, dividends from PSUs, and loans, to be spent transparently and accountably.

Contingency Fund of India

A fund created by Parliament to meet unforeseen or urgent expenditures, available for use under ministerial guidance and controlled by the Department of Expenditure.

Direct taxes

Taxes levied directly on individuals or organizations (e.g., income tax, wealth tax); typically progressive, with higher incomes paying more.

Indirect taxes

Taxes paid indirectly by consumers through goods/services (e.g., GST, customs); they do not directly affect a person’s income.

Dividends from public sector enterprises

Profits earned by government-owned enterprises that are distributed to the government as dividends.

Public debt

Loans borrowed by the government from domestic and international sources to finance expenditures and development.

Direct Benefit Transfer (DBT)

Delivery of subsidies/benefits directly to beneficiaries’ bank accounts to reduce leakage and corruption.

Aadhaar-enabled payments

Subsidies/payments linked to the Aadhaar identity to ensure transfers reach the rightful recipients.

PFMS (Public Financial Management System)

Online platform to track fund flow and expenditure across schemes, including wage payments under programs like MNREGA.

Open Finance Platform (South Korea)

A real-time government spending platform that enhances transparency by tracking funds from initiation to completion.

e-Tender

Electronic procurement process to promote transparency and reduce leakage in government spending.

Government e Marketplace (GEM)

Online platform for government procurement to streamline purchases and improve accountability.

Public Accounts of India (PAI)

Accounts recording receipts and expenditures that do not form part of the Consolidated Fund, ensuring accountability for public money.

Consolidated Fund of India (CFI)

The main fund into which government revenues are deposited for servicing the government’s normal functions.

Transparency

Openness and visibility of government transactions and decisions, enabling public scrutiny.

Accountability

Holding public officials responsible for outcomes and the use of public resources.

Social audit

Community-driven evaluation of public spending to ensure expenditures align with on-ground needs and outcomes.

Outcome budgeting

Budgeting that focuses on outputs and outcomes rather than mere inputs or expenditures.

Gram Sabha

Village assembly that promotes participatory budgeting and local accountability at the grassroots level.

Public procurement

Acquiring goods and services by the government, often enhanced by digital tools to promote fairness and efficiency.

Finance Commission (constitutional body)

A commission that recommends the distribution of financial resources between the center and states.

Whistleblower

A person who reports corruption or malfeasance within an organization or government body.

Whistleblower protection law

Legislation or policy measures designed to shield informants from retaliation, with confidential reporting channels.

CVC (Central Vigilance Commission)

Independent body to deter corruption; reports to Parliament and intervenes when misconduct is detected.

RTI Act

Right to Information Act; empowers citizens to request information from public authorities to promote transparency.

CAG (Controller and Auditor General)

Officer responsible for auditing government finances; one of the four pillars of authority discussed in the notes.

Pillars of the Indian Constitution (as cited in lecture)

Supreme Court, Election Commission of India, UPSC, and CAG, viewed as essential supporting institutions.

Article 39

Constitutional principle directing resources to be used for the welfare of the people and reduction of social inequalities.

Equity and fairness in fund distribution

Ensuring that public funds reach all segments of society, especially the vulnerable, to promote inclusive development.

Sustainability

Development that balances economic, social, and environmental factors to avoid long-term debt and ecological harm.

Norway Government Pension Fund Global

A sovereign wealth fund investing revenue from the government to benefit future generations.

Red tape

Excessive bureaucratic procedures and delays hindering timely project initiation and execution.

Digitalization in governance

Using digital tools to simplify processes, reduce paperwork, and speed up public service delivery.

Public debt servicing (interest and principal)

Regular payments to repay domestic or international loans to maintain creditworthiness.

Corruption and embezzlement (misutilization)

Diversion of funds for personal use or illicit purposes, leading to ineffective or incomplete projects.

Public welfare and accountability mechanisms

Structures like audits, social audits, transparency portals, and citizen charters that improve governance.