The Food Safety and Standards Authority of India is planning to establish the FSSAI Fund which will consist of grants from the Centre, fees collected through licensing and other statutory charges in addition to income generated from testing and advice, among others. This decision is a step to formulate appropriate financial regulations as well as a framework to manage internally generated funds.
In 2017, the CAG had performed a performance audit of the FSSAI and observed that internally generated funds remained unused because the FSSAI had not set regulations for the use of these funds. It therefore recommended that the food safety authority notify the financial rules for the use of funds collected since 2008.
According to the Draft Food Safety and Standards Authority of India (Financial) Regulations, 2022, a finance committee will be set up to provide recommendations on financial matters of the FSSAI. Its mandate will be to review the budget of the FSSAI, including the performance budget, the review of the estimate of central government grants and other revenue and the review of the audit of the accounts of the Authority through government audits.
The committee will also review the investment of surplus funds and budget allocations for various programs. The Finance Committee will be comprised of officials from the FSSAI and representatives from the Department of Health and Family Welfare.
“The accounts of the Authority, as certified by the Comptroller and Auditor General of India or any other person designated by him on his behalf, together with the audit report thereon, shall be transmitted annually to the Central Government and such Government shall order the same to be laid before each House of Parliament or as directed by the Government,” the draft stated.
June 06, 2022