Imphal, June 08 2009: Taking a serious view of the failure of Depts to utilise funds allotted to them within the stipulated period and denial of banks to draw cash on the last day of financial year, the State Govt has decided that in the event of any Department failing to utilise two-third of the fund allotted to them by December 31, the remaining funds would be diverted to other Departments.

A decision to this effect was adopted on May 25 during an official meeting presided by the Chief Minister and attended by Ministers, the Chief Secretary, the Additional Chief Secretary, Commissioners, Secretaries and Heads of Department.

To do away with the practice of rushing to the Finance Department, Treasury and Banks to draw cash by different Departments, the meeting agreed on devising a quarterly action plan.

It agreed that Departments should furnish reports of all works/projects taken up by them in the last fiscal by June 30 .

Funds allotted under Special Plan Assistance which could not be drawn by Home Department during the last financial year was Rs 742.24 lakhs.

For LDA it was Rs 250 lakhs, PHED Rs 366.26, FCS Rs 600 lakhs, Commerce and Industry Rs 120 lakhs, TD Rs 200 lakhs, Economic and Statistic Rs 5.34 lakhs and for MOBC it was Rs 17.34 lakhs.

The meeting entrusted Principal Finance Secretary to convene a meeting with Departments which could not draw their funds for revalidation and authorisation of the non-utilised funds so that these funds may be accounted in the next budget estimate.

Comment