The observed under-spending by the Department on Transfers and Subsidies is a matter of concern particularly taking into account that the core operations of the Department are funded though Transfers. Taking cognizance of the fact that the Department is on its first year of operation as a stand-alone entity, factors -such as capacity constraints, appropriateness of the supporting infrastructure and so forth -are of significant importance in assessing the performance of the Department, both qualitatively and quantitatively.