Sources said that the Finance Secretary has warned the officials in this regard by writing a letter. This letter is important in the sense that the allocation of funds under various schemes and borrowings of the state governments is done only on the basis of information received from the officers of the All India Services deputed in the states.
Citing examples of difficulties faced by a state in raising borrowings due to misinformation, the letter said that public servants are responsible for giving proper advice and providing accurate information.
According to this letter sent by the Finance Secretary last month, strict action will be taken against the officers under the service rules if false information is found. However, there will be no penalty for genuine or minor mistakes.
The amount to be borrowed is approved by the Government of India to the states. Apart from this, the allocation for centrally-sponsored schemes is also done by the central government. This entire exercise is done on the basis of the information given by the IAS and IPS officers posted in the states.
According to the source, the Finance Secretary has said that the names of the officers who committed the mistakes will be sent to the Department of Personnel and Training so that steps can be taken against them. Officers can also be prevented from being sent on deputation abroad and at the Centre.
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