Para 3.8.24 — MSO

Relationship of financial and physical performance 3.8.24 A relationship between physical and financial performance should be established and commented upon for the State as a whole as well as for the sample districts. The unit cost of implementing the scheme should be arrived at and analysed in absolute terms. For instance, if the unit rate of expenditure per beneficiary is fixed at around Rs 10,000, a budget provision of Rs 20 crores in one year or a five-year period can be expected to cover 20,000 beneficiaries. If, in this example, the actual expenditure is only Rs 15 crores and 25,000 beneficiaries are stated to have been covered, one of the following three conclusions is possible:

(i) the estimation was incorrect;

(ii) the benefit flowing was insufficient and less than what was intended; or

(iii) the reporting of the input or output itself was erroneous.

On the other hand, if in the same example, only 5,000 of the target population are stated to have benefited from the scheme, it could be concluded that the lower achievement is suggestive of leakage, mismanagement, etc. In the macro analysis and correlation of financial and physical performance, only the financial input actually utilised for the scheme should be used. Misuse of Funds