GS4 PYQ (Mains Answer Writing): Ethics Case Study - 11 | UPSC Mains Answer Writing: Practice PDF Download

Rajesh Kumar is a senior public servant, with a reputation of honesty and forthrightness, currently posted in the Finance Ministry as Head of the Budget Division. His department is presently busy in organising the budgetary support to the states, four of which are due to go to the polls within the financial year. This year’s annual budget had allotted ?8300 crores for the National Housing Scheme (NHS), a centrally sponsored social housing scheme for the weaker sections of society. ?775 crores have been drawn for NHS till June. The Ministry of Commerce had long been pursuing a case for setting up a Special Economic Zone (SEZ) in a southern state to boost exports. After two years of detailed discussions between the centre and state, the Union Cabinet approved the project in August.
Process was initiated to acquire the necessary land. Eighteen months ago a leading Public Sector Unit (PSU) had projected the need for setting up a large natural gas processing plant in a northern state for the regional gas grid. The required land is already in possession of the PSU. The gas grid is an essential component of the national energy security strategy. After three rounds of global bidding the project was allotted to an MNC, M/s XYZ Hydrocarbons. The first tranche of payment to the MNC is scheduled to be made in December Finance Ministry was asked for a timely allocation of an additional ?6000 crores for these two developmental projects. It was decided to recommend re-appropriation of this entire amount from the NHS allocation.
The file was forwarded to Budget Department for their comments and further processing. On studying the case file, Rajesh Kumar realized that this re-appropriation may cause inordinate delay in the execution of NHS, a project much publicized in the rallies of senior politicians. Correspondingly, non-availability of finances would cause financial loss in the SEZ and national embarrassment due to delayed payment in an international project. Rajesh Kumar discussed the matter with his seniors. He was con politically sensitive situation needs to be processed immediately. Rajesh Kumar realized that diversion of funds from NHS could raisé difficult questions for the government in the Parliament.
Discuss the following with reference to this case:
1. Ethical issues involved in re-appropriation of funds from a welfare project to the developmental projects. (UPSC MAINS GS4)

The quality of being fair and impartial, following the principles of justice, focusing attention on the common good, and responsible decision-making are some key issues about moral principles in this situation. They don’t have anything to deal with the polls and the rallies of senior politicians as the concern are apolitical. Here the ethical issues bog down to – priority between housing to the poor and economic development of the nation; socialism versus capitalism. 

• As setting up a Special Economic Zone and natural gas processing plant, economic development would help in the region’s economic growth and eventually lead to the overall development of society & people. Social justice, as re-appropriation may cause inordinate delay in the execution of the National Housing Scheme and may hamper the welfare of vulnerable sections of the society. 
• As a senior public servant, Rajesh Kumar’s responsibility is to exhibit empathy and compassion for society’s downtrodden section’s upliftment and welfare. Housing is a basic need. When it concerns the welfare of weaker sections it calls for utmost public accountability to realize the net benefits to society and to be morally good 2.Given the need for proper utilization of public funds, discuss the options available to Rajesh Kumar. Is resigning a worthy option? ANSWER: This is a case where Rajesh has to decide the ethicality of diversion of the funds allocated for building houses for weaker sections of society to the setting up of SEZ and a natural gas processing plant. The construction of houses for the poor can provide immediate benefit to the poor, while the setting up of SEZ or the plant would provide benefit in terms of employment and revenue. 

In this case, the options available to Rajesh are as follows: 

• Initially bifurcating the fund flow so that no project will see the halt and arranging the funds from less important activities to avoid any financial loss and national embarrassment. 
• The ministry of commerce while discharging its functional duties at the best level could raise the funds from other vast resources since the SEZ and an international project offer the net benefit to the economy and it won’t be too difficult. 
• Lastly, the consideration of resigning as an option is not at all a good idea. Resigning may reflect the escapist mindset and may set a bad example for other fellow civil servants. Also, being a public servant, it is natural to have such issues. 
• It is also both the duty and moral responsibility to act in public service, following objective standards and without being influenced by vindictive politics. As Hillary Clinton said “If you believe you can make a difference, not just in politics, in public services, in advocacy around all these important issues, then you have to be prepared to accept that you are not going to get 100 percent approval.