2020 · GS Paper 4 · Q7 · 20 marks
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. The annual budget for the current year allocated ₹ 8300 crores to the National Housing Scheme (NHS). This is a centrally sponsored social housing scheme for the weaker sections of society. Upto June, ₹ 775 crores have been drawn for NHS. To boost exports, the Commerce Ministry has been lobbying to setup a Special Economic Zone (SEZ) in a southern State. After detailed discussions between the Centre and the State lasting two years, the Union Cabinet approved the scheme in August. The process to acquire the requisite land has been initiated. Not very far away in a northern State, a major Public Sector Unit (PSU) had proposed to establish a large gas processing plant for a regional gas grid. The PSU already has the requisite land. This gas grid is an essential component of the national energy security strategy. After three stages of global bidding, the project has been awarded to an MNC, M/s XYZ Hydrocarbon. The PSU is scheduled to make the first installment of payment to this MNC in December. The Finance Ministry was asked to allocate an additional amount of ₹ 6000 crores in time for these two development projects. It was decided that reallocation of the entire amount from the NHS allocation may be recommended. The file was sent to the Budget Division for review and further necessary action. On studying the file, Rajesh Kumar gets an impression that the reallocation might cause inordinate delays in implementation of the NHS scheme, which has been featured prominently in public rallies by senior politicians. On the other hand, financial constraints would lead to cost overruns for the SEZ and delayed payment to the international partner would cause national embarrassment. Rajesh Kumar discussed the matter with his senior officers. He was told that political expediency demanded immediate action in this politically sensitive matter. Rajesh Kumar felt that raiding NHS scheme for funding would invite difficult questions in Parliament. Discuss the following in the context of the above case: (a) The ethical issues involved in reallocation of funds from a welfare scheme to a development project. (b) Discuss the options available to Rajesh Kumar keeping in mind the requirement of proper utilization of public funds. Is resignation a worthy option?
In short
Reallocating NHS funds raises issues of justice to the poor, Parliament's power of the purse and broken promises; Rajesh should record frank advice and propose lawful funding, not resign. Only ₹775 crore of ₹8,300 crore was drawn by June, so savings plus a Contingency Fund advance can bridge the gap.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 292 words
Introduction
The dilemma is between Distributive Justice for the NHS beneficiaries and the Development Imperative of the SEZ and the gas grid.
(a) Ethical Issues in Reallocating Welfare Funds
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Justice to the poor
Diverting housing funds fails Rawls's Difference Principle.
•
Power of the purse
Moving voted grants to another ministry needs a supplementary demand under Article 115, not a quiet transfer.
•
Broken promise
The NHS was showcased in rallies, so diversion erodes trust, while election haste breeds cost overruns.
(b) Options Available to Rajesh Kumar
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(i) CAPITULATE [Procedural-Evasive]
Approving everything is Moral Myopia that bypasses Parliament.
•
(ii) CONFRONT [Strict-Legal]
Insisting on a fresh vote for every rupee delays the December payment.
•
(iii) EVADE [Empathetic-Humanitarian]
Shielding the NHS alone ignores cost overruns.
•
(iv) COMPROMISE [Compromised-Hybrid]
A quiet half cut is Dual-Standard Practice.
•
(v) RECONCILE ✓ [Balanced]
Record advice, fund lawfully, protect the NHS (recommended).
Distributive Justice vs Development Imperative. Venn diagram: Distributive Justice, Development Imperative; overlap: Lawful, phased funding
Only ₹775 crore of ₹8,300 crore was drawn by June, so genuine savings can be used, with a Contingency Fund advance under Article 267 (corpus ₹30,000 crore since 2021) [current event] regularised by a supplementary demand, and dissent recorded as T.S.R. Subramanian (2013) [case] encouraged.
Justification:
Rawls's Difference Principle: development may proceed only if the worst-off lose nothing promised.
(b) Is Resignation a Worthy Option?
•
Not yet
Resignation is Premature Martyrdom; Rajesh still has voice through the file, unlike Kannan Gopinathan [officer], who resigned in 2019 saying he could not voice his views. It is legitimate only if he is ordered to act illegally.
Conclusion
Fearless advice on record and lawful funding let both the poor and the nation's energy security win.
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Integrity Under Pressure7 questions
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2020
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2026
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- 2025Subash is Secretary, PWD in the State Government. He is a senior officer, known for his competence, integrity and dedication to work. He enjoys the trust and confidence of Minister Incharge of PWD and Programme Implementation. As a part of his job profile, he is responsible for policy formulation, execution of projects relating to infrastructure initiatives in the State. Besides, he oversees the technical and administrative aspects relating to planning, designing and construction etc. Subash's Minister is an important Minister in the state and significant growth in urban infrastructure development and road network has been registered during his tenure. He is very keen for launching of ambitious road construction project in the near future. Subash is in regular touch with the Minister and is working various modalities of road construction project. Regular meetings, interactions and presentations are made by him to the Minister before a formal public announcement of the project is made by the Minister. Subash's only son Vikas is in real estate business. His son from his own sources is aware that a mega road project is on the anvil and announcement in this regard is expected anytime. He is very keen to know from his father the exact location of the upcoming project. He knows that there would be quantum jump in the prices of land in the vicinity. Buying land at this stage at cheaper prices would pay him rich dividends. He is pleading with him (his father) day in and day out to share him location of the proposed project. He assured him that he would handle the matter discretely as it would not attract any adverse notice as he in the normal course, keeps on buying land as a part of his business. He feels pressurised because of constant pleadings by his son. Another significant aspect of the matter pertained to the extra/undue interest in the above project by the Minister PWD. His nephew was also having big infrastructure project company. In fact, the Minister has also introduced his nephew to him and indicated to him to take care of his nephew's business interest in the forthcoming project. The Minister encouraged him to act fast in the matter as early announcement and execution of mega road project would enhance his status in the party and public life. (a) Discuss the ethical issues involved in the case. (b) Critically examine the options available to Subash in the above situation. (c) Which of the above would be most appropriate and why?
- 2022Ramesh is a State Civil Services Officer who got the opportunity of getting posted to the capital of a border State after rendering 20 years of service. Ramesh's mother has recently been detected cancer and has been admitted in the leading cancer hospital of the city. His two adolescent children have also got admission in one of the best public schools of the town. After settling down in his appointment as Director in the Home Department of the State, Ramesh got confidential report through intelligence sources that illegal migrants are infiltrating in the State from the neighbouring country. He decided to personally carry out surprise check of the border posts along with his Home Department team. To his surprise, he caught red-handed two families of 12 members infiltrated with the connivance of the security personnel at the border posts. On further inquiry and investigation, it was found that after the migrants from neighbouring country infiltrate, their documentation like Aadhaar Card, Ration Card and Voter Card are also forged and they are made to settle down in a particular area of the State. Ramesh prepared the detailed and comprehensive report and submitted to the Additional Secretary of the State. However, he has summoned by the Additional Home Secretary after a week and was instructed to withdraw the report. The Additional Home Secretary informed Ramesh that the report submitted by him has not been appreciated by the higher authorities. He further cautioned him that if he fails to withdraw the confidential report, he will not only be posted out from the prestigious appointment from the State capital but his further promotion which is due in near future will also get in jeopardy. (a) What are the options available to Ramesh as the Director of the Home Department of the bordering State? (b) What option should Ramesh adopt and why? (c) Critically evaluate each of the options. (d) What are the ethical dilemmas being faced by Ramesh? (e) What policy measures would you suggest to combat the menace of infiltration of illegal migrants from the neighbouring country?
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Question from the official UPSC Civil Services (Main) Examination 2020 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.