PSIR DeepAnalysis

UPSC Ethics daily answer writing Practice July 30th

UPSC Ethics daily answer writing Practice July 30th

Question: The performance of any project or programme should be assessed on the basis of value for money based on criteria of economy, efficiency and effectiveness. Comment.

Model answer


  • Briefly write about significance of proper utilisation of public funds.
  • Performance assessment should be based on value for money.
  • Principles to be observed to achieve value for money.
  • Conclude accordingly.


It is the fiduciary responsibility of state functionaries to manage and utilise public funds properly.

Misutilisation of funds through corruption and malpractices can create a governance gap in development process. Therefore public funds should be utilised to create greater social dividends.

The public money invested in any project must deliver its value which can be explored through various principles.

The principles of economy, efficiency and effectiveness should be basis for assessment of value for money of any public project.

 Economy: The public money should be invested as such to get maximum social dividends with limited resources. Optimum utilisation of existing resources should be done.

Efficiency: public money must promote overall social welfare, it shouldn’t promote any specific interest. For example when a public resource has been utilise for building school, which will develop Human Resource rather can allocating it to any private entity,for serving private interest,

Effectiveness: The results of public funds utilisation should be long lasting and sustainable. Those shouldn’t be used for short sighted projects.

You can add your examples and other arguments.

Conclude accordingly.