(a) It is said that for an ethical work culture, there must be code of ethics in place in every organisation. To ensure value-based and compliance-based work culture, what suitable measures would you adopt in your work place? (b) India is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF projection. However, it has been observed that in some sectors, allocated funds remain either under-utilised or misutilised. What specific measures would you recommend for ensuring accountability in this regard to stop leakages and gaining the status of third largest economy of the world in near future?
Approach · directive: “what measures / recommend”
What it asks · (a) Propose measures that build both a values-based and a rules-based ethical culture at work; (b) recommend accountability measures that stop under-use and misuse of allocated public funds.
The question has 2 parts — answer each
- (a) Suggest suitable measures to build a work culture that is both value-based and compliance-based, anchored in a code of ethics
- (b) Recommend specific accountability measures to stop under-utilisation and misuse of allocated funds, so that public money drives growth towards the third-largest-economy goal
Open with · A code of ethics states values and a code of conduct enforces rules; the 2nd ARC wanted defined Public Service Values with any transgression treated as misconduct.
Cover
- (a) Values-based: leadership by example, a short code of ethics drafted with staff, case-based ethics training, recognition of integrity.
- (a) Compliance-based: clear code of conduct, conflict-of-interest declarations, rotation in sensitive posts, internal audit, whistle-blower protection, time-bound disciplinary action.
- (a) Climate: fair appraisal, open grievance channels, respect and inclusion (POSH compliance), periodic integrity audits.
- (b) Under-utilisation: realistic budgeting, just-in-time release of funds, release linked to physical progress, capacity building of implementing agencies.
- (b) Misuse: end-to-end digital tracking through PFMS, direct benefit transfer, GeM procurement, geo-tagging of assets, third-party and social audits.
- (b) Accountability: outcome budgets with published indicators, follow-up of CAG and committee findings, fixed responsibility and penalties for diversion, proactive RTI disclosure.
- (b) Incentives: reward efficient spenders, public dashboards and citizen report cards — money follows performance.
Close with · Values make compliance willing and systems make values credible; tracking every rupee from release to result turns public money into outcomes on the road to the third-largest economy.
Add value (verified)
- A PIB-released assessment (April 2025) estimates that direct benefit transfer has produced cumulative savings of ₹3.48 lakh crore by plugging leakages — the scale of misuse that end-to-end tracking can stop. India's DBT: Boosting Welfare Efficiency — PIB, 21 April 2025 ↗“India’s Direct Benefit Transfer (DBT) system has helped the country achieve cumulative savings of ₹3.48 lakh crore by plugging leakages in welfare delivery”
- 2nd ARC (Ethics in Governance, rec. 2.7.12): 'Public Service Values' should be defined for all tiers of government, and any transgression treated as misconduct. 2nd Administrative Reforms Commission, 4th Report: Ethics in Governance (2007), Summary of Recommendations — DARPG (archived) ↗“‘Public Service Values’ towards which all public servants should aspire, should be defined and made applicable to all tiers of Government and parastatal organizations. Any transgression of these values should be treated as misconduct, inviting punishment.”
- Aristotle: practical wisdom is acquired through proper upbringing and habits, not by learning general rules alone. Aristotle's Ethics — Stanford Encyclopedia of Philosophy ↗“In order to apply that general understanding to particular cases, we must acquire, through proper upbringing and habits, the ability to see, on each occasion, which course of action is best supported by reasons. Therefore practical wisdom, as he conceives it, cannot be acquired solely by learning general rules.”
- GFR 2017 (PFMS rule): all implementing agencies are registered on PFMS to track fund flow and unspent balances, and payments released 'just-in-time'. General Financial Rules 2017 (updated), Rule 86 — Directorate General of Military Aviation copy (dgma.gov.in) ↗“(2) All the ministries sanctioning grant-in-aid shall register all implementing agencies till last level of implementation on PFMS to track fund flow and unspent balances. (3) All the payment, to the extent possible, shall be released ‘just- in-time’ by the Ministries through PFMS.”
- GFR 2017, Rule 62(3): a rush of expenditure in the closing months of the financial year is a breach of financial propriety. General Financial Rules 2017 (updated), Rule 62 — dgma.gov.in ↗“Rule 62 (3) Rush of expenditure, particularly in the closing months of the Financial Year, shall be regarded as a breach of financial propriety and shall be avoided.”
- Kautilya (Arthashastra): as fish moving under water cannot be seen drinking, so government servants cannot be caught taking money — hence systems of checks. Kautilya's Arthashastra, tr. R. Shamasastry, Book II Ch. IX — archive.org ↗“Just as fish moving under water cannot possibly be found out either as drinking or not drinking water, so government servants employed in the government work cannot be found out (while) taking money (for themselves).”
Question: UPSC's CS (Main) 2025, GS Paper IV — paper ↗. Approach: Minimalist IAS, checked 1 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer · 371 words (UPSC limit 150) · Minimalist IAS
A code of ethics states values; a code of conduct enforces rules. The 2nd ARC's Ethics in Governance wanted both: defined 'Public Service Values' for all tiers of government, with any transgression treated as misconduct.
(a) Measures for a value-based and compliance-based work culture
- Values by habit: Aristotle held that practical wisdom comes through proper upbringing and habits, not from general rules alone; so ethics must be practised daily through case discussions and mentoring, not framed on walls.
- Own the code: a short code of ethics drafted with staff, built on integrity, impartiality, accountability and service.
- Tone from the top: leaders disclose interests, keep time and explain decisions; no double standards.
- Recognise integrity: reward it in appraisals and awards, not targets alone.
- Compliance: a clear code of conduct with red lines; annual asset and conflict-of-interest declarations; rotation in sensitive posts; segregation of duties; internal audit.
- Speak-up culture: protected whistle-blower channels, POSH compliance and open grievance redress.
- Swift, fair discipline: proportionate penalties, with outcomes made known so that rules visibly bind everyone.
(b) Accountability measures to stop under-use and leakage of funds
- Why systems: Kautilya warned that officials taking money are as hard to detect as fish drinking under water; trust needs verification.
- Against under-utilisation: realistic, bottom-up budgets; the GFR require every agency implementing a grant-in-aid to be registered on PFMS to track fund flow and unspent balances, with payments released just-in-time where possible.
- End the March rush: GFR Rule 62(3) treats a rush of spending in the closing months as a breach of financial propriety; quarterly expenditure plans should replace it.
- Against misuse: direct benefit transfer has saved ₹3.48 lakh crore by plugging leakages (PIB, April 2025); GeM procurement, geo-tagged assets and third-party and social audits extend the same logic.
- Answerability: outcome budgets with published indicators; time-bound action on CAG and committee findings; fixed responsibility, recovery and penalties for diversion; proactive RTI disclosure.
- Incentives: performance-linked grants and public dashboards, so that money follows results.
Values make compliance willing, and systems make values credible. When every rupee is tracked from release to result, public money becomes outcomes, and the climb from fourth- to third-largest economy rests on firm ground.
Written by Minimalist IAS from facts checked at source (how we verify) — a little fuller than exam length, so every part of the question is covered; in the hall, keep the structure and trim the detail. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.