NEW DELHI: Taking note of the reports pertaining to the delay in release of funds to the agencies implementing the Centrally Sponsored Schemes (CSSs), the Delhi government has decided to make allocation as soon as it receives money from the Centre.
The finance department has issued directions to the Principal Accounts Office (PAO) not to wait for request from the department in order to streamline transfer of funds and to reduce time consumed to process such requests.
"Finance (budget) deparment will suo-motu authorise the funds to the agency concerned which are implementing the CSSs immediately on receipt of funds from the nodal ministry and confirmation of the same by the Principal Accounts Office of the Delhi government without waiting for any request from the department," said the SOP issued by the joint secretary (budget) of the Delhi government earlier this week for the release of grant-in-aid for the CSSs.
The SOP further said that the department would not require specific requests for authorisation of funds separately. “This authorisation shall be applicable to the extent of budget provisions as per available in the detailed demand for grant during the relevant financial year or the amount received from the Government of India, whichever is lower...
For the purpose of expenditure, the department will have to follow the procedure as per General Finance Rules (GFR) or delegation of financial power issue from time to time by the finance department and conditions laid down in the sanction issued by the nodal ministry,” also said the SoP, which has been sent to additional chief or principal secretaries and secretaries including heads of the state government department.
The Centre funds several developmental initiatives taken by the state governments, for which substantial budget allocations are made. They are called CSS in which the Centre and state government share funds in 60:40 ratio. There are 28 umbrella CSSs for various sectors such as health, education, sanitation, agriculture, and housing under which funds are given to the state governments.
“Finance department had issued detailed guidelines and also prescribed a time schedule in 2014. In August 2018, the department prepared a SoP for the release of grant for CSS under which the fund transfer process should be done within 15 days. However, instructions were not being followed causing unwanted delay and adverse remarks from the ministries. Hence, fresh directions have been issued,” said a government official.