THIRUVANANTHAPURAM: Big on controversies, vague on results. That seems to be the end result of the Asian Development Bank (ADB)-funded Modernising Government Programme (MGP), launched in 2002 promising more efficient government institutions and better service delivery for the public, according to a high-level Kerala Assembly panel.
Less than half the amount sanctioned for MGP was actually spent on modernisation while large sums were channelled for other purposes, the Estimates Committee has found.
Of the total allocation of Rs 1300 crore for MGP, a mere Rs 536 crore was spent on various modernisation programmes in the government departments, the panel headed by V D Satheesan MLA has reported. A massive chunk of the money - Rs 756.46 crore to be precise - was spent on ‘filling’ the revenue gap of the Power Department. From the Rs 216 crore allocated to the Industries Department, a large sum went for settling various liabilities of public sector units such as VRS and debts, according to the committee’s report which was published on Monday.
Dogged by a row over foreign funding, MGP was wound up in 2008. The committee, however, noted that there is scant idea about its end. In spending the money, many departments had not followed expenditure norms. Many initiatives kick-started under MGP are yet to reach completion and where they have been completed, documents such as utilisation certificates have not been prepared, the committee found. ‘’The committee concludes that this is not quality expenditure. Although MGP aimed at creation of projects for providing the common man with better services and ensuring transparency in governance and avoiding delays, examination of available statistics showed that of the allocated Rs 1300 crore, Rs 756.46 crore was spent on filling the revenue gap of the Power Department,’’ the committee, which has as its members 10 MLAs and top officials of the Legislature Secretariat, noted.
Kerala had received a total 250 million US dollars (Rs 1148.5 crore) as assistance for MGP. From the Asian Development Bank (ADB), the state received 200 million US dollars. The Netherlands Government provided 25 million dollars as grant along with the first ADB installment of 100 million dollars. The state also received an amount equivalent to 25 million dollars as grant from the Government of India with the second installment of 100 million dollars.
Seventy per cent of the total assistance came as loan and the rest as a grant. The state has to repay the loan at 9.5 per cent interest to the Centre in 25 years. Repayment had begun in 2006 and, among other things, the Estimates Committee has asked the government to submit details of the money remitted by way of principal amount and interest since then. The committee decided to take a closer look at MGP as serious efforts have not been taken at the official level to study the impact of MGP on the state’s administration. The committee also found that the funding agency in its reports had termed MGP as ‘partially successful.’ Total success, reportedly, had proven elusive due to ‘lack of political support and failure in convincing the public about its benefits.’
