Plan fund outgo pegged at 10% – N.J. NAIR


October 8, 2014 | By | Add a Comment

This includes expenditure on spill-over projects of previous year

The average Plan FUND absorption rate of local self-government institutions during the past six months has been pegged at 10 per cent.

As per the provisional estimates drawn up by the government, grama panchayats could utilise only about Rs.249.5 crore out of the total outlay of Rs.2,595 crore for the current FINANCIAL year.

Block panchayats have utilised only Rs.72 crore from the total outlay Rs.623 crore; district panchayats Rs.56 crore from Rs.623 crore; municipalities Rs.49 crore from Rs.452 crore; and corporations Rs.28 crore from Rs.376 crore.

This varied between 10 and 13 per cent during the same period last year.

This includes the expenditure incurred for executing the spill-over projects of the previous year, which means the current year’s utilisation will be less than 10 per cent during the past six months.

The State-level Coordination Committee on Decentralisation headed by the Chief Minister, comprising the Rural Development and Panchayat Ministers, which met here on October 1, decided to extend the deadline for completing the spill-over projects till October 31.

The Finance Department, in its bid to curb revenue deficit, had decided to scrap the system of releasing the general purpose fund in 12 equal instalments and the asset development and maintenance FUNDS in 10 instalments.

It was decided to provide FUNDS from the treasury against the actual expenditure incurred by the LSGIs. The coordination committee had expressed its reservations about the decision and wanted its impact on implementing the development projects to be reviewed. For, this was perceived to run contrary to the spirit of devolution of powers to the civic bodies.

In this context, the government is likely to consider the option of releasing FUNDS to the civic bodies in every quarter after setting an expenditure target for them. This will prompt them to utilise the funds in a meaningful manner within the stipulated time, sources said.

Of the total outlay of Rs.4,700 crore for all civic bodies in the current year, the government had already released about Rs.3,705 crore, sources said.

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Source The Hindu THIRUVANANTHAPURAM, October 8, 2014

 

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