After MGNREGA, Finance Deptt delays release of funds sanctioned under PMGSY

*Repeated communiqués to CS fail to change situation

Mohinder Verma
JAMMU, June 12: Despite repeated concerns by the Union Government, the State Finance Department has not mend its way and continued to delay the release of funds sanctioned under the Centrally Sponsored Schemes. The latest case pertains to Pradhan Mantri Gram Sadak Yojana (PMGSY) under which Union Ministry of Rural Development has sanctioned grant-in-aid of Rs 180.86 crore for the current financial year.
From the current financial year, the funds under the Centrally Sponsored Schemes are being released by the Government of India to the State Consolidated Fund to grant greater control to the State Governments in implementation of the schemes.
Accordingly, the Union Ministry of Rural Development released grant-in-aid amounting to Rs 180.86 crore to the Jammu and Kashmir under Pradhan Mantri Gram Sadak Yojana vide its letter No. P-17024/10/2009-RC dated May 6, 2014.
The State was required to release this grant-in-aid fund to the Jammu and Kashmir State Rural Roads Development Agency (JKSRRDA) within three days from the date of receipt of the funds. However, the State Finance Department instead of strictly adhering to the guidelines of the Ministry continued to delay the transfer of funds to the JKSRRDA.
“As the funds were not released for 45 days, the Joint Secretary of Union Ministry, Rajesh Bhushan vide DO No.17026/11/2012-RC dated June 2, 2014 conveyed the serious concern of the Ministry to the Chief Secretary, Mohd Iqbal Khandey”, official sources told EXCELSIOR.
“PMGSY is a time bound programme and delay in release of funds would hamper the pace of the programme”, the Union Joint Secretary told the Chief Secretary, adding “moreover this would adversely affect the timely payment to the contractor agencies, which are executing the programme on the ground”.
While expressing serious concern over the non-adherence to the guidelines by the Finance Department, the Union Joint Secretary through this communiqué asked the Chief Secretary to direct the Finance Department officers to immediately release the funds sanctioned under PMGSY to JKSRRDA without further delay to ensure smooth implementation of this flagship programme in the State.
Despite concern expressed by the Union Ministry, the Finance Department has not ensured 100% compliance of the directive as well as guidelines as only 55% of the grant-in-aid sanctioned by the Union Government has been released to the JKSRRDA, sources said while disclosing that as against Rs 180.86 crore sanctioned by the Union Government, the Finance Department has only transferred Rs 100 crore to JKSRRDA.
A senior officer of the Public Works Department, on the condition of anonymity, confirmed that only 55% grant-in-aid has been released by the Finance Department that too following the intervention of Union Ministry. The officer further said, “the spending capacity of the PIOs is not up to the mark and this might be the reason behind partial release of funds. Moreover, the remaining money can be utilized for some other works till the same is required for the intended purpose”.
However, the sources said, “instead of justifying the partial release of funds the concerned authorities should ensure that the pace of work on the PMGSY roads is expedited in order to ensure their timely completion”, adding “at present the work on numerous PMGSY roads is going on at a snail’s pace not because of less financial assistance from the Union Government but due to inadequate capacity of contractor agencies and lack of coordination at the State Government level”.
They further said, “use of Centrally Sponsored Scheme money for other purpose is also against the spirit of the laid down guidelines and cannot be justified in any way”.
This was not for the first time that the Finance Department came under criticism from the Union Government as in the month of April this year, the Secretary of Union Rural Development Ministry in a communiqué to the Chief Secretary had expressed concern over inordinate delay in release of funds sanctioned under Mahatma Gandhi National Rural Employment Guarantee Scheme by the Finance Department from the State Consolidated Fund to the State Employment Guarantee Fund.
The Union Secretary had even warned to block release of more funds in case of non-compliance to the directives and laid down guidelines.