Govt adopts PCI pattern for funds allocation to Deptts

Mohinder Verma
JAMMU, July 27: In a bid to streamline process of funds allocation to different sectors, the State Government has chalked out a strategy on the pattern of Planning Commission of India wherein funds would be allocated on priority basis and not in bulk as used to be the practice till last financial year.
Principal Secretary, Planning and Development Department, B B Vyas, who has been assigned the task of making allocations as per the new methodology by the Chief Minister, Omar Abdullah, has already set in motion a comprehensive process of rationalizing the allocation to the departments and the entire exercise would be completed by the end of next week.
Authoritative sources told EXCELSIOR that Planning Commission of India has reduced the “free component” in the current year’s Annual Plan by over Rs 500 crore thereby giving less flexibility to the State for taking wider projects afresh.
“Out of total Rs 7300 crore plan allocation, Rs 6202 crore is tied grant which included Rs 1400 crore revenue component thus the free component available with the State during 2012-13 financial year remains to the tune of Rs 1100 crore as compared to Rs 1600 crore during the previous financial year”, they informed.
Soon after the annual plan finalization by the Planning Commission, Chief Minister had a detailed discussion with the Chief Secretary, Madhav Lal and Principal Secretary, Planning and Development Department, B B Vyas, who is also Principal Secretary to the Chief Minister, on the possible impact of less funds under “free component” and finally it was decided that State Government would adopt the strategy on the pattern of Planning Commission of India from the current financial year wherein funds would be allocated on priority basis and not in bulk as used to be the practice till 2011-12 financial year, sources said.
On the instructions of Chief Minister, Principal Secretary Planning and Development Department has for the first time started a comprehensive process of rationalizing the allocation to the departments from the funds made available under Capital Component in the Annual Plan outlay sanctioned by the Planning Commission for the current financial year.
“Mr Vyas is scrutinizing each and every project in all the sectors to ensure that projectised allocations are utilized in such a way that ongoing projects are completed in time bound manner instead of taking up new projects”, sources said, adding “the exercise vis-à-vis six departments including Industries and Commerce, Education, ARI and Training and Cooperatives has been completed while as the evaluation of the projects of other departments would begin from tomorrow in order to complete the entire exercise by end of next week”.
On the lines of the Planning Commission, Mr Vyas is calling special meetings individually with all the Administrative Departments wherein schematic break-up is being discussed on finalizing sector-wise annual plan in order to ensure that allocation is made on priority basis and no in the bulk, sources further said, adding “this step would go a long way in timely completion of the ongoing projects”.
Responding to a question regarding directions issued to Administrative Secretaries and heads of different departments vis-à-vis new strategy, sources said, “all the departments have been asked to project their demands on the basis of four year timeline for completion of projects and accordingly part allocation for the current financial year will be released”.
In response to another question, sources said, “this strategy would not only help in checking creation of liabilities but also ensure productive use of the funds”, adding “moreover, the projects, whose fate is hanging in balance for want of sufficient funds during the past several years, would also be completed in time-bound manner”.