The Centre is planning to use cash management tools to monitor fund flows to states and encourage ‘just in time’ releases. Finance secretary TV Somanathan says this will help manage the deficit better in a difficult year.
In the last financial year, the Centre has been able to save around Rs 10,000 crore in terms of interest through cash management tools.
CNBC-TV18 also learns that, out of the Rs 4.46 lakh crore allocated in Budget for centrally sponsored schemes, Rs 1.26 lakh crore is lying unutilised in the system.
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