The new SNA SPARSH model is introduced to facilitate effective cash management in Centrally Sponsored Schemes (CSS) with the aim of achieving the goal of “Just–in–time” fund flow from both the Centre and State levels. This is achieved by integrating the State Financial Management System, e-Kuber of RBI and PFMS. The core idea of the model is to release funds only when an actual expenditure is incurred and audited.

SNA SPARSH is an upgraded version of the existing Single Nodal Agency (SNA) model, where the scheme funds used to lie unspent in SNA accounts for months in the light of the heightened fiscal discipline imposed on states. Now the states have clear visibility of where funds are going and when they are utilised.

This scheme brings efficiency by not allowing funds to lie idle in treasury. State governments will access funds precisely when bills for incurred expenditure are audited and approved by the Finance departments, enhancing overall cash management.

The SPARSH platform streamlines fund flow by consolidating multiple subsidiary accounts under the SNA into a single scheme account at the RBI in the SNA SPARSH model. This significant reduction in the proliferation of accounts enhances the clarity and oversight of fund flows. The departments have benefited a lot by the introduction of SNA SPARSH because they get assured and timely release for the work already done. It also helps the departments to plan for implementation of schemes in that f inancial year. The reduced delay in payments and facilitation of better monitoring of expenditure improve accountability in implementing agencies, leading to effective implementation of the schemes to achieve their desired outcomes.

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The system is relatively new and requires further reduction of manual intervention for smooth functioning. Ultimately SNA SPARSH model marks a paradigm shift in CSS management by bringing efficiency and transparency in fund flows, eliminating redundancy and enabling state governments to access the quantifiable impact of the schemes.

Views expressed by: Shri D. Ronald Rose, IAS, Secretary, Department of Finance, Government of Andhra Pradesh

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