Advance payments made to executing agencies as state sets 98% spending target
The state government is moving at double pace to spend funds worth Rs 4200 Crore in just hundred days. Official sources said this amount is almost seven percent of the state’s Rs 6000 Cr plan and could not be expended due five-month unrest in Valley.
According to sources the government machinery has resorted to ‘contingency spending’ in order to meet the target of almost 98 percent spending while allowing just two to four percent funds to lapse. “This will ensure us a four percent lead as compared to last fiscal,” a top government functionary said adding that the contingency spending was made possible by early approval of budget.
Meanwhile just Rs 300 Cr has been spent out of Rs 1200 Cr PMRP for past two years. The money was granted directly by prime minister out of his reconstruction plan. However the deadline to spend PMRP money is 2012 and the government has ample time to plan investments
Authoritative sources told Rising Kashmir that the government could spend only 31 percent of the total plan till November and would now resort to contingency spending in order to meet the target of 98 percent. This would mean the lapse of just two to three percent funds. According to sources only Rs 300 Cr out of Rs 1200 Cr released under PMRP have been expended. However the deadline to spend the PMRF funds is 2012.
“It could be termed a success. We shall be able to spend almost whole plan funds despite the fact that Kashmir witnessed complete halt over four months. But the credit for this success goes to the early passage of budget,” a top government functionary from the state’s planning department said. The official said major projects were either underway in the state or already completed. However, the region-wise figures of funds spent are not available with the department. “We don’t have region wise details as the state is one,” the official said.
Official sources in the planning department told Rising Kashmir, by the end of November 2010, the state has taken a lead of four percent in expenditure this year. “This has happened despite five-months of unrest in Kashmir,” they said. “This should not be taken as a surprise as the annual budget was passed on time. We have still three months of this financial year that ends on March 31, 2011.”
“The money has already been earmarked for various projects, which are either under way or about to complete. At the end of financial year, we may end up with 97-98 per cent expenditure,” the official said adding, “Two to three per cent of fund lapse is a routine matter.”
Minister of State for finance, Manohar Lal said the government had carved out a mechanism after consulting various financial experts how to save funds from getting lapse. “Very little room has been left for the money to lapse. A few per cent of funds may lapse at the end of the financial year,” he said.
Lal said the convening the district development board meeting in each district was a move aimed to check the exact expenditure at the district level. “This helped to earmark more funds, release more money where need was found,” he said. During the recent DDB meetings of various districts, the chief minister released additional amount worth Rs 3 to Rs 5 core at an average in the districts like Baramulla, Kulgam, Budgam and Islamabad. “In Baramulla district, the chief minister released Rs 3 Crore additional amount to the already sanctioned plan of Rs 99 Crore for the district. The district had registered 54 percent expenditure till November 31.
The official in the planning said the state has shown improvement in capital and loan components. “The state has also shown improvement as compared to last year in various developmental and flagship schemes like irrigation, construction of hospitals, roads and other infrastructure,” the official said adding that the black-topping of roads was completed owing to the fact that Economic Reconstruction Agency, R&B department worked day-night to ensure mecdamization of roads.
Sources in the finance department said the government had made advance payments to various departments to save money from getting lapse. “Various government departments had made advance payments to the executing agencies to ensure less fund lapse,” sources said.
Now that the working season in Kashmir is over, the government is of the opinion that works that can’t be started in winter have already been completed or are about to complete. “The other works can be re-started in February and can be carried forward as the payments for men and material have already been made for such works,” an official in the finance department said.
Meanwhile just Rs 300 Cr has been spent out of Rs 1200 Cr PMRP for past two years. The money was granted directly by prime minister out of his reconstruction plan. However the deadline to spend PMRP money is 2012 and the government has ample time to plan investments
Authoritative sources told Rising Kashmir that the government could spend only 31 percent of the total plan till November and would now resort to contingency spending in order to meet the target of 98 percent. This would mean the lapse of just two to three percent funds. According to sources only Rs 300 Cr out of Rs 1200 Cr released under PMRP have been expended. However the deadline to spend the PMRF funds is 2012.
“It could be termed a success. We shall be able to spend almost whole plan funds despite the fact that Kashmir witnessed complete halt over four months. But the credit for this success goes to the early passage of budget,” a top government functionary from the state’s planning department said. The official said major projects were either underway in the state or already completed. However, the region-wise figures of funds spent are not available with the department. “We don’t have region wise details as the state is one,” the official said.
Official sources in the planning department told Rising Kashmir, by the end of November 2010, the state has taken a lead of four percent in expenditure this year. “This has happened despite five-months of unrest in Kashmir,” they said. “This should not be taken as a surprise as the annual budget was passed on time. We have still three months of this financial year that ends on March 31, 2011.”
“The money has already been earmarked for various projects, which are either under way or about to complete. At the end of financial year, we may end up with 97-98 per cent expenditure,” the official said adding, “Two to three per cent of fund lapse is a routine matter.”
Minister of State for finance, Manohar Lal said the government had carved out a mechanism after consulting various financial experts how to save funds from getting lapse. “Very little room has been left for the money to lapse. A few per cent of funds may lapse at the end of the financial year,” he said.
Lal said the convening the district development board meeting in each district was a move aimed to check the exact expenditure at the district level. “This helped to earmark more funds, release more money where need was found,” he said. During the recent DDB meetings of various districts, the chief minister released additional amount worth Rs 3 to Rs 5 core at an average in the districts like Baramulla, Kulgam, Budgam and Islamabad. “In Baramulla district, the chief minister released Rs 3 Crore additional amount to the already sanctioned plan of Rs 99 Crore for the district. The district had registered 54 percent expenditure till November 31.
The official in the planning said the state has shown improvement in capital and loan components. “The state has also shown improvement as compared to last year in various developmental and flagship schemes like irrigation, construction of hospitals, roads and other infrastructure,” the official said adding that the black-topping of roads was completed owing to the fact that Economic Reconstruction Agency, R&B department worked day-night to ensure mecdamization of roads.
Sources in the finance department said the government had made advance payments to various departments to save money from getting lapse. “Various government departments had made advance payments to the executing agencies to ensure less fund lapse,” sources said.
Now that the working season in Kashmir is over, the government is of the opinion that works that can’t be started in winter have already been completed or are about to complete. “The other works can be re-started in February and can be carried forward as the payments for men and material have already been made for such works,” an official in the finance department said.
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