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Sunday 6 April 2014

'Busy' State Govt Forgoes Rs 15,000 Cr Central Funds

Published: 30th March 2014 09:02 AM
Last Updated: 30th March 2014 09:04 AM
In what is being seen as a typical case of irresponsibility, the state government has failed to utilise Rs 15,000 crore Central grants in 2013-14. This was on account of the failure of various departments in submitting utilisation certificates to the Centre of their share of funds.
However, sources in the finance department said there was still hope that the funds might not lapse if the Centre as an exceptional case revalidates the claim of the two state governments after division for release of grants. But there is a catch here.
Even for revalidation to happen, the Centre would insist in utilisation certificates. If the departments had not spent the state’s share, there is no way they can submit utilisation certificates. Only in case of fund that had been spent, they would be able to send certificates.
The main reason for the failure of utilising the Central grants for the Centrally Sponsored Schemes (CSS) was that Chief Minister N Kiran Kumar Reddy could not focus on the development in the last three months of his tenure and mainly focused on the anti-division movement.
After Kiran Reddy demitted the office, the officials too were busy with the division work and could not get the grants.
Chief Secretary PK Mohanty and other officials from Finance Department rushed to Delhi two days ago for obtaining funds. But, it was too late as the financial year was coming to a close.
There is criticism that the officials woke up from slumber in the last minute. What all assurance they got from Delhi was that their pleas would be considered if they submit utilisation certificates. This clearly shows how the administration came to a stand still due to the political leadership which engaged more in politics than administration.
According to sources, the State failed to utilise `6,500 crore funds under Centrally Sponsored Schemes and another `5,000 crore in the form of Central guarantees. The state could not get grants of `4,000 under 13th Finance Commission, which included `500 crore for agriculture, `650 crore for education, `350 for medical and `700 crore for welfare sector.
The State could not get around `4,000 crore for municipalities and Panchayat Raj bodies. This was because of non-conduct of elections to local bodies. By the time elections were completed, the financial year came to an end.

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