Project Chintan

PAC orders 60-day deadline for NTA seed-fund utilisations

India's Public Accounts Committee told the Education Ministry to secure utilisation certificates for ₹10 crore of the NTA seed grant within 60 days. The directive follows a CAG report noting outstanding UCs and broader gaps in fund verification across ministries.

· 3 min read

Key takeaways

  • PAC instructed the Education Ministry to secure the 2018-19 utilisation certificate for ₹10 crore of the NTA's ₹25 crore seed grant within 60 days.
  • CAG flagged widespread outstanding utilisation certificates across 15 ministries, totaling ₹54,282 crore as of March 31 of the prior year.
  • NTA is an autonomous body created in 2017 with a one-time grant of ₹25 crore; multiple years show substantial income and expenditure figures.

What Happened

The Public Accounts Committee (PAC) of Parliament, led by K.C. Venugopal, directed the Ministry of Education on August 19, 2026, to ensure that the National Testing Agency (NTA) submits pending utilisation certificates for ₹10 crore of the ₹25 crore seed funding provided at the agency’s creation in 2017. The instruction targets UC submission for the financial year 2018-19 and mandates completion within 60 days. The PAC discussed a Comptroller and Auditor General (CAG) report on outstanding utilisation certificates and examined potential impacts on examination-related activity and governance safeguards. Education Ministry officials pledged that the NTA would be asked to furnish the UC within the 60-day window.

The NTA was established in 2017 as an autonomous, self-financing body, receiving a one-time ₹25 crore from the Centre. The CAG report noted that UC submissions for ₹10 crore from this grant remained pending for 2018-19. During the proceedings, officials from the Ministries of Finance and Education were present, and committee members questioned whether delays in UC submission had affected examination infrastructure, evaluation, security, staffing, testing centres, or other essential services. They also pressed for details on safeguards to prevent financial-management deficiencies from undermining fairness, reliability, or timeliness of examinations that affect students’ prospects.

In response, Education Ministry officials said the NTA would be required to provide the pending UC within 60 days. The Rajya Sabha’s records quoted the Education Ministry noting NTA income and expenditure figures for multiple years: ₹504.16 crore income and ₹440.20 crore expenditure in 2019-20; ₹515.16 crore income and ₹436.25 crore expenditure in 2020-21; ₹508.47 crore income and ₹426.52 crore expenditure in 2021-22. The CAG report highlighted a broader issue where several ministries released grants without the mandatory utilisation certificates. As of March 31 last year, around 34,000 utilisation certificates involving ₹54,282 crore were outstanding across 15 ministries and departments.

Why It Matters

The PAC’s directive underscores the government’s emphasis on accountability for public funds, especially in agencies responsible for large-scale examinations. Utilisation certificates are a formal mechanism to verify that money allocated for specific purposes has been spent as sanctioned. Delays in UC submissions can raise questions about financial management and could complicate oversight of ongoing or future funding linked to performance, transparency, and fairness in examination delivery.

The broader context cited by the CAG—widespread UC delays across ministries—suggests systemic gaps in grant verification, which can affect government credibility and the timely conduct of public services dependent on funded programmes.

Background

The NTA received seed funding at its inception in 2017 to support its establishment as an autonomous body. The 2018-19 UC for ₹10 crore from this initial grant remained outstanding, according to the CAG report discussed by the PAC. The committee’s inquiries also touched on whether exam-related activities might have been impacted by funding lapses and whether existing safeguards are sufficient to ensure proper use of funds.

Key Facts

  • PAC directed the Education Ministry to secure UC submissions for ₹10 crore of the ₹25 crore seed fund given to NTA at its inception in 2017.
  • The target for furnishing the pending UC is 60 days from the August 19, 2026 directive.
  • Utilisation certificates for the ₹10 crore in the 2018-19 year were reported as pending by the CAG.
  • NTA is described as an autonomous, self-financing body established in 2017 with a one-time ₹25 crore grant from the Centre.
  • CAG reported that as of March 31 of the previous year, approximately 34,000 UC documents worth ₹54,282 crore were outstanding across 15 ministries and departments.
  • NTA’s reported annual income/expenditure figures in the Rajya Sabha reply: 2019-20 income ₹504.16 crore; expenditure ₹440.20 crore; 2020-21 income ₹515.16 crore; expenditure ₹436.25 crore; 2021-22 income ₹508.47 crore; expenditure ₹426.52 crore.

What Happens Next

The Education Ministry is to obtain the pending UC for ₹10 crore within 60 days. The outcome may affect ongoing assessments of NTA’s financial governance and could influence future scrutiny of utilisation certificates across government agencies.

Sources reviewed

Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.

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