Sanjeev Pargal
JAMMU, Mar 30: With just a day left for the closure of current financial year, the Centre today released Rs 538 crores under various components for the State Government but nearly Rs 2000 crore worth shortfall remained in different sectors of the total projection for 2012-13, a part of which the State would take up with the Union Finance Ministry and Planning Commission of India for re-validation.
Official sources told the Excelsior that the Central Government today released Rs 538 crores under different components for the State, which helped the Government tide over the financial crisis to some extent as bills amounting between Rs 800 crores to Rs 900 crores were pending with different treasuries.
Today was virtually the last day of the financial year as tomorrow being Sunday, the State Government was not expecting any release of more funds.
“Even after the release of Rs 538 crores this afternoon, the State faced a shortfall of nearly Rs 2000 crores in different categories for current fiscal year of 2012-13 projections,” sources said.
The Centre didn’t release Rs 400 crores under Special Plan Assistance while out of Rs 1000 crores proposed for market borrowings, the State could get only Rs 550 crores leaving a deficit of Rs 450 crores. Rest of the amount, which the Centre didn’t release was part of various Centrally Sponsored Schemes including Prime Minister’s Re-construction Plan (PMRP).
While the funds under PMRP wouldn’t lapse and can be re-validated for next financial year, the amount not released by the Centre under some categories would lapse, sources said, adding that the efforts would be made by the Government to get most of the funds including those under the Centrally Sponsored Schemes re-validated.
Sources said Rs 538 crores released by the Centre this afternoon helped the State tide over the financial crisis in the treasuries, where the bills amounting between Rs 800 crores to Rs 900 crores had piled up at the close of financial year for payments for the works executed in different sectors.
Asserting that piling up of the bills running into several crores was not “abnormal” on last days of the financial year, sources said the Government was trying to clear majority of the bills by keeping the treasuries including the one at Civil Secretariat open till late this evening to clear the maximum possible bills.
Sources said the State Government was expected to take up with the Union Finance Ministry and the Planning Commission of India the re-validation of funds that would lapse during the current financial year. They pointed out that some other States have also faced the similar problems.
“Several States couldn’t get the plan and Centrally Sponsored Schemes funds, which had been promised to them by the Union of India,” they said.
The State Government had been allocated Rs 7300 crore worth annual plan and Rs 700 crores under PMRP for 2012-13 besides funds under various other Centrally Sponsored Schemes. For the next financial year of 2013-14, the State has projected a demand of Rs 8000 crores under annual plan and Rs 600 crores under PMRP.
The issue of delay in release of funds and piling up of bills in the treasuries also figured in the Legislative Assembly.
Congress leader and former Minister Ghulam Mohammad Saroori said the contractors, who have executed works in Kishtwar and other parts, were struggling for release of their funds.
“The contractors have been made only 55 per cent payment for their works while 45 per cent payments were pending. The contractors, who have done their works, should be paid. Peace would be affected if the labourers revolted for denial of payments,” Mr Saroori said and wanted to know whether the payments would be made on “32nd of March”?
Another Congress MLA and former Minister Mohammad Sharief Niaz said the similar problems were being faced across the State and the Government should take remedial measures.
Responding, Finance Minister Abdul Rahim Rather assured the House that by today evening there would be positive results and most of the bills would be cleared as he has asked the treasuries including the Secretariat treasury to remain open even on Saturday to clear the bills.
He said a strict vigil was also required in the treasuries as bills amounting to several crores had to be cleared.
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