The Food Safety and Standards Authority of India is looking to set up the FSSAI Fund which will consist of grants given by the Centre, fees earned through licensing and other statutory charges besides income generated through testing and consultancy among others. This move is a step to formulate appropriate financial regulations as well as have a framework to manage internally generated funds.

In 2017, CAG had done a performance audit of FSSAI and had observed that internally generated funds remained un-utilised as FSSAI did not frame regulations for utilisation of such funds. It had therefore recommended that the food safety authority should notify financial regulations for utilisation of fundscollected 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 the financial matters of the FSSAI. Its mandate will be to review the budget of FSSAI including Performance Budget, review of estimation of grant-in-aid from the Central government and other receipts and review of audit of accounts of the Authority through government audits.

The committee will also review investment of surplus funds and budget allocations for various programmes. The finance committee will consist of officials from FSSAI and representative from Ministry of Health and Family Welfare.

“ The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him on his behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament or as prescribed by the Government,” the draft stated.

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