Source: The Sangai Express
Imphal, November 25:
Hectic efforts are on to ensure that plan outlay for the next financial year (2006-07) are not deducted in comparison to the current amount, informed State Finance Department source.
Heads of department concerned are literally facing an uphill task as time is running out for proper utilisation of State Plan Outlay amount of Rs 985.37 crores liable for use within the current financial year.
The main impediments, according to the source, hampering utilisation of State Plan Outlay in consonance with the prescribed percentage of utilisation is delay by the Ministry of Finance, Govt of India in releasing entitlement like Central Plan assistance (CPA), Additional Plan Assistance (APA) and Special Plan Assistance (SPA).
These allocations clubbed with the State Plan Outlay had not been released till date prompting Finance Department officials to rush to the national capital and approach relevant Central Government officials on why the funds had been put on hold.
Fearing curtailment in the next financial year allocation due to inadequate utilisation rate, the Chief Minister on october 24 had convened a high level meeting to deliberate on reason why only 12.86 percent of the total allocation could be utilised till September, reminded the source.
Concerned at only Rs 126.77 crores out of the plan outlay amount of Rs 985.37 crores could be utilised the Chief Minister had advised department heads to conform to the Planning Commission�s prescription of utilising atleast 67 percent of the total outlay.
However, records furnished by the department heads at the said meeting indicated possibility of spending only around Rs 568.56 crores or 57.70 percent to which the Chief Minister, who is also Finance and Planning in-charge, is informed to have insisted on concerted effort from the officials to meet the Planning Commission criteria.
Delay from the Ministry of Finance in releasing the entire state entitlements is having direct repercussion upon the State Finance Department as well as other implementing departments, opined the source.
Asserting that State departments had already submitted detailed project report (DPR) to the Planning Commission and the latter forwarding the same to Ministry of Finance, the source speculated that holding fund release might be due to delay in processing official documents between the PC and Ministry of Finance.
On the other hand, the source also insisted that complex nature of financial norms is hampering speedy utilisation of plan Outlay provided in the non-lapsable Central pool of resource of the DONER Ministry.
Explaining on the financial norms contradicting DONER funding procedure, the source said scheme funds from the latter have no mention of local tax and Value Added Tax deductions compared to the financial norms suggesting deduction of 5.6 percent of the total allocation by the funding source.
Such complications in the financial norms besides hampering smooth implementation of project funds are rendering the State Government in a pitiable position as fund paucity is further plunging the State into oblivion, observed the source.