Deliberate withholding funds

Instance after instance can be cited in respect of  Government’s  decision to put off transfer of funds provided under various Centrally sponsored schemes and project to prop destination. Nobody knows the exact reason for this unexpected and irregular practice of the State Government.  Funds are meant to float the projects and projects are conceptualized to raise standard of living of people in rural as well as urban areas. The instance under consideration is 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. This is a national programme of immense importance because India in reality lives in villages. The project was devised to development and extensive connectivity in rural India so that brisk movement of men and material was possible. Consequently, the ambit of the project or Yojna was extended to the J&K State also as is the usual practice with all Centrally sponsored projects, The Union Ministry of Rural Department sanctioned and transferred 180.86 crore rupees to the State Finance Department with explicit advice that the amount had to be transferred 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 following the instructions of the Union Government failed to transfer the funds for more that 45 days. Exasperated with this attitude of the Finance Department, the Joint Secretary of the Union Ministry of Rural Development had no choice but to write to the Chief Secretary to get the funds transferred to proper quarters. Despite intervention of the Union Government, the Finance Department has almost very reluctantly released only 55 per cent of the allocated funds to the recipients. The reason for piecemeal release is a mystery.
There is every apprehension that the sum might have been transferred to some other head which is disallowed and would mean infringement of rules. The Finance Department is not forthcoming with any explanation for deferring the payment or making only part payment. We have said that this is a new culture that has developed with the State administrative structure. More often than not, the State Departments, when receiving any new project along with funds and guidelines begin to make their own interpretations of the guidelines as suits them.
We have often said that a culture of slackness has overtaken the State administration and inertia of sorts has seeped in. Not completing any Central project within stipulated time frame is one problem but more than those not releasing funds in time is much worse a practice totally unacceptable. Hundreds of labourers, contractors, suppliers, and auxiliary staff are deployed on these projects but no release of funds is a cruel move to starve those who are building the nation. If the labourers who work in the day and expect wages to be paid to them at the end of the day’s work do not get their wages, it is cruelty and tyranny. It is to force his family go to bed without dinner. The very purpose of the scheme stands defeated. Obviously, the Union Ministry of Rural Development has taken very serious note of slackness on the part of the State Department. If it stops funding or release of instalments for the reason that the state fails to implement the scheme, it will be justified. But the ultimate loss is of the people of the State.
As transfer of funds of Centrally sponsored schemes to other heads is disallowed and as invariably the State Government fails to keep the time schedule for completion of projects, we had suggested that a committee be constituted of State and Central representatives from Finance, Planning and General Administration Departments to discuss the reasons why the State fails to implement Central schemes in toto and what should be the remedial measures to pull it out of the mess. Stopping the grants by way of punitive punishment is not the right way of overcoming the hurdle. The findings of the committee could become a model for all other departments which are required from time to time to implement Centrally sponsored schemes of development.