How much compelling are the financial straits for the State can be fairly understood from the fact that the fiscal year is fast coming to close within two more weeks and plan instalments are nowhere in sight. The critical situation about the amount of Special Plan Assistance to the tune of Rs. 1074, plus Market Borrowings to the tune of Rs. 1100 crore all computing to 2174 rupees is heading almost to the same situation that we witnessed at the end of fiscal year 2011-12. It is strange that the reasons for non-availability of the total amount in question are almost the same that were there for similar situations last year. Why has not the Finance Department made good homework to bring out a case of causes and effects of new Government order in regard to utilization of funds?
So far the State has received a sum of Rs.1000 crore under Special Assistance Account and Rs. 400 crore were said to be in the pipeline. Market Borrowing has been disallowed and that also was the case last year. Just two weeks are left for the financial year to come to an end and it is difficult to presume that anything substantial will happen in just two weeks. Last year what happened at the end of the day was that the Planning Commission cut Rs.1000 crore which the State Government had intended to collect out of Market Borrowing. But as it has been already denied to the State it is difficult to imagine how the Government would meet the deficit. May be that it has to forego the amount of Rs 1100 crore and remain content with reduced annual plan allocations. It is also thought by various financial circles in the State that the State authorities should not give much emphasis to the Market Borrowing but instead it should focus attention the main source, which is Rs, 2174 crore rupees.
It is not clear why the Planning Commission should be delaying release of allocated funds to the State in time. This complaint has been there for quite some time and at the end of the day either the Finance Minister or the Chief Minister has to rush to Delhi and get things straightened out. Can’t there be a mechanism that would undo the provision of delaying or deferring payment of instalments for one reason or the other. If it is a fact that the Government has identified and submitted 15000 development works to the Planning Commission of India, which it has already undertaken on the basis of approval given to the SPA during plan finalisation last year, there was no reason for not releasing the instalment in time. It is to be noted that against State’s insistence to be given Rs. 8000 crore as annual plan for the financial year 2013-14, only Rs. 7300 crore was sanctioned by the Planning Commission. State’s demand also was Rs.600 crore apart from the annual plan and under the Prime Minister’s Re-construction Plan (PMRP).
All that one can say is that it is not a healthy practice of finding fault with some minor irregularities and then delaying release of instalment of annual plan. It greatly hampers the development of the State. We do not find it in the interests of the State to continue with the policy of delaying instalments and then at the end of the day making deductions that affect the scheme of development.
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