Twitter
Advertisement

Wary finance department releases only 75% of state budget

The finance department has decided not to bear the burnt of inefficiency and financial indiscipline of other departments.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The finance department has decided not to bear the burnt of inefficiency and financial indiscipline of other departments.

It will now release the 75% of the amount allocated in the state budget to the departments giving them free hand to spend it in first three quarters of the budget year.

This will, it expects, help the departments utilise the fullest of the provisions made for them in the state budget.

The finance department has always been at the receiving end for the poor rate of the spending of the budget allocation by the department.

The last fiscal was also no exception as only 50 % of the budgetary allocations were spent till the end of February. Nearly 15% or Rs5,000 crore of the state budget remained unspent by the end of the financial year as some departments failed to plan their spending. The unspent amount by the departments lapsed.

The finance department, through a notification issued last week, has warned all departments to plan their spending well in advance so that the funds are released in equitable parts of the year and development work does not suffer.

The department has also warned others that the rest of the 25% of the allocation will not be released unless the 75% of the budget is spent. Also, if the spending till end of December is less than 65%, the allocation in the next supplementary would be reduced in the percentage of the spending.

The notification also has stated the observations about the spending of the budgetary allocation. The department has observed that 25% of the budget is spent in the last month of the financial year and this leads to financial indiscipline. The allocation is spent in haste and without adequate preparation, which impacts development work.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement