Experts fear unofficial diversion, Govt mulling new mechanism
Amid growing apprehensions about Kashmir’s share in the Rs 6000 crore annual budget going to Jammu region, at least 20-25 per cent funds are likely to lapse by the end of financial year (2010-11) owing to the five-month long unrest in Kashmir this summer. The government, meanwhile, maintains that very less amount would lapse.
Though experts say diversion of funds is not possible under budgetary rules, they fear that money may be diverted “unofficially.” Besides advocating improving work culture in the State, the experts suggest the government should raise issue of ‘funds lapse’ with the Government of India.
Noted economist, Nisar Ali said 37 per cent funds were utilized in Kashmir in 1990, while Jammu registered 53 per cent fund allocation. “The process remained same till 1992. After that things started improving and both the regions witnessed almost equal utilization of funds,” he said.
Ali, who is also the member of the state finance commission, said barring few years the two regions have been witnessing equal distribution and utilization of funds released under annual budget.
He said there was no room for the diversion of Kashmir’s share towards Jammu. “If that (diversion) happens, that would be a major violation of constitution and law,” he said.
Owing to the massive unrest since June 11, Ali added, at least 20 to 25 per cent would get lapse on Kashmir’s part at the end of current fiscal.
“As per the budget rules, unspent money cannot be saved. Neither can the state claim for the same,” he said.
“The money will lapse. As far as the diversion of money is concerned, that can take place through re-appropriation.”
He suggested that the work culture in the state should be adopted on the lines of Europe. “There should be triple shifts in government offices,”Ali said.
Another economist and Vice Chancellor of Central University of Kashmir, Abdul Wahid Qureshi said Kashmir should not be left to suffer as far as fund lapse is concerned.
“As far as my knowledge is concerned, budgetary money can’t be diverted. The state government should rake up the issue with GoI to seek some remedy so that Kashmir does not suffer,” he said.
Disappointed at the prospects of the funds getting diverted, President Federation of Chamber of Commerce and Industries Kashmir, Shakeel Qalander said, “Kashmir’s working season is over and 70 per cent of funds are unspent. We want to know from the government how they will spend the amount when only two months are left. There is every possibility that Kashmir’s share may get diverted silently.”
An official in the planning, wishing anonymity, said though the amount earmarked for a particular region cannot be diverted to another. “However, this is being done unofficially. Later, the same is shown spent in the area from where it is diverted,” he said.
The government has started convening review meetings of district development boards on war footing to know the exact figure of spent amount. “This will help to get the exact figures in all districts about the spent and unspent amount. Accordingly, further decisions will be taken,” he said.
Finance Minister Abdur Rahim Rather said all the departments have been directed to speed up the ongoing works. On how much amount would remain unspent, he said the exact figure will come up in March next year.
Meanwhile, Minister of State for Finance, Manohar Lal claimed that very less amount would lapse at the end of the financial year.
“We are on job and a special mechanism has been put in place to save funds. We have already made advance payments to various agencies,” he said.
It may be recalled that the officials state that only 32 per cent of the Rs 6000 crore have been spent. Sources said of the Rs 1200 crore under Prime Ministers Reconstruction Program only Rs 200 crore have been spent. The deadline for Rs 1200 crore is 2012.
Noted economist, Nisar Ali said 37 per cent funds were utilized in Kashmir in 1990, while Jammu registered 53 per cent fund allocation. “The process remained same till 1992. After that things started improving and both the regions witnessed almost equal utilization of funds,” he said.
Ali, who is also the member of the state finance commission, said barring few years the two regions have been witnessing equal distribution and utilization of funds released under annual budget.
He said there was no room for the diversion of Kashmir’s share towards Jammu. “If that (diversion) happens, that would be a major violation of constitution and law,” he said.
Owing to the massive unrest since June 11, Ali added, at least 20 to 25 per cent would get lapse on Kashmir’s part at the end of current fiscal.
“As per the budget rules, unspent money cannot be saved. Neither can the state claim for the same,” he said.
“The money will lapse. As far as the diversion of money is concerned, that can take place through re-appropriation.”
He suggested that the work culture in the state should be adopted on the lines of Europe. “There should be triple shifts in government offices,”Ali said.
Another economist and Vice Chancellor of Central University of Kashmir, Abdul Wahid Qureshi said Kashmir should not be left to suffer as far as fund lapse is concerned.
“As far as my knowledge is concerned, budgetary money can’t be diverted. The state government should rake up the issue with GoI to seek some remedy so that Kashmir does not suffer,” he said.
Disappointed at the prospects of the funds getting diverted, President Federation of Chamber of Commerce and Industries Kashmir, Shakeel Qalander said, “Kashmir’s working season is over and 70 per cent of funds are unspent. We want to know from the government how they will spend the amount when only two months are left. There is every possibility that Kashmir’s share may get diverted silently.”
An official in the planning, wishing anonymity, said though the amount earmarked for a particular region cannot be diverted to another. “However, this is being done unofficially. Later, the same is shown spent in the area from where it is diverted,” he said.
The government has started convening review meetings of district development boards on war footing to know the exact figure of spent amount. “This will help to get the exact figures in all districts about the spent and unspent amount. Accordingly, further decisions will be taken,” he said.
Finance Minister Abdur Rahim Rather said all the departments have been directed to speed up the ongoing works. On how much amount would remain unspent, he said the exact figure will come up in March next year.
Meanwhile, Minister of State for Finance, Manohar Lal claimed that very less amount would lapse at the end of the financial year.
“We are on job and a special mechanism has been put in place to save funds. We have already made advance payments to various agencies,” he said.
It may be recalled that the officials state that only 32 per cent of the Rs 6000 crore have been spent. Sources said of the Rs 1200 crore under Prime Ministers Reconstruction Program only Rs 200 crore have been spent. The deadline for Rs 1200 crore is 2012.
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