State spends ‘meagre funds’ for creating assets

Government has spent meagre funds for creation of assets in the first six months of the current financial year.

This has been revealed recently in the six-monthly review of Rajasthan Fiscal Responsibility and Budget Management Act (FRBM) released by the department of finance.

The report says that  in case of medical and health, between April and September meare 1.37 % of funds was spent. Rs 18.21 crore have been spent on this sector while the revenue expenditure is Rs 3301.59  crore or 39 %.
Economists indicate that more money is spent on salaries and other expenses rather than creation of assets.

Similarly, in education, 3.24 % achievement has been made and Rs 28.56 crore has been spent while the revenue expenditure in education between April and September was Rs 12030.82 crore.

In case of social welfare and nutrition too mere 1.89% achievement has been attained and Rs 2.82 crore capital expenditure has been done.

Notably, capital expenditure is an expenditure which is done for creation of permanent nature of assets. This expenditure is non recurring and is utilized for long time. For example funds spent on purchase of building, machinery, furniture etc. In one way, government’s achievement in capital expenditure between April and September has been 24.27 % and interestingly more than last April and September of financial year 2016-17 when it was 23.33 %.

“If the capital expenditure is less , it means projects are not taking off ,” commented an economist on this situation adding that funds which remain unutilised are sent back to finance department.

 DNA tried to contact ACS (finance) DB Gupta for his comments on this review, however his mobile remained unanswered and text message was also sent to him. Notably,  the 6-monthly review report is released in January every year.

WHAT THE HALF-YEARLY REPORT SAYS

Economists indicate that  more money was spent on salaries and other expenses rather than creation of assets in first six months of the current financial year.
In education, 3.24% achievement has been made and 
Rs 28.56 crore has been spent