---
title: "Utilisation of Public Funds: Probity in Spending"
description: "Utilisation of public funds refers to the obligation of public servants to spend government money lawfully and economically for approved public purposes."
url: "https://modeldiplomat.com/learn/glossary/utilisation-of-public-funds"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Utilisation of public funds is the ethical and legal obligation requiring public servants to spend government money lawfully, economically, and exclusively for sanctioned public purposes.
- What is the legal basis for the proper utilisation of public funds in India?
- How does misutilisation of funds differ from misappropriation?
- What are the canons of financial propriety?
- Who audits the utilisation of public funds?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

Utilisation of public funds is the ethical and legal obligation requiring public servants to spend government money lawfully, economically, and exclusively for sanctioned public purposes.

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In its 2012 report, India's Comptroller and Auditor General flagged the allocation of coal blocks without competitive bidding, citing a presumptive loss to the exchequer and triggering Public Accounts Committee scrutiny of public-fund utilisation.

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