Granting of funds as annual plan for a financial year and releasing the granted funds are two aspects of how the Union Planning Commission handles financial matters with the states. Norms and procedures have been laid down for each aspect. Granting of funds is not a simple exercise. Both the State Planning and Finance Department and the Union Planning Commission burn much of midnight oil to hammer out the figures of the grant. All States are required to go through this exercise, and finally agreement is reached at. Having completed that process then follows the second part which is of release of grants, obviously made in installments. This too has to be done under the norms and procedures set forth.
It is at this stage that we have got held up though temporarily. For the current annual plan, the State of Jammu and Kashmir has been provided with a grant of 7300 crore rupees. After utilizing the grant on on-going projects, we have been left with 1900 crore rupees as of today. In normal course of things, this amount should have been released as we are reaching the fag end of the financial year. But so far only 225 crore rupees have been released which means that 1700 crore rupees remain withheld. It is but natural that withholding of funds that should have been in our hand is causing financial difficulties to the State and payments have remained withheld.
We are aware that there are norms and procedures to be followed before installments of annual grant are released. For example, we know that the recipient party has to submit a utilization certificate indicating that the grants so far released have been spent on specific projects and to optimum capacity. There are other formalities also. These have to be completed. The State Planning and Financial Department is reported to have completed all the formalities in this respect. It has been in constant touch with the Planning Commission. Therefore withholding of reaming amount to the tune of 1700 crore rupees should not happen. The amount is committed to be spent by the end of current financial year. It is bare two months that the projects for which commitment is made have to be brought to completion. Keeping in view the weather and geographical conditions of the State, it needs to be emphasized that we in this state have far less working days/hours available to us in comparison to other states where geographical and weather conditions are mild and moderate. The output ratio in our state is less than in other states. These factors need to be taken into consideration. Delay in release of installments is bound to have adverse impact on the speed of development in the State. Generally, the maximum of grant is released by the end of December enabling the States to carry forward their developmental plans without obstruction. Now that the month of January is about to come to an end, blocking the release of full outstanding amount will put the state to severe financial disadvantage. We hope that the Planning Commission is alive to the difficulties of the State and will order release of funds without further delay.
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