State Suffers for No Fund Monitor

CAG pulls up Govt for not setting up a central monitoring agency on utilisation of Central funds

Published: 15th February 2015 05:58 AM  |   Last Updated: 15th February 2015 05:58 AM   |  A+A-

BHUBANESWAR:Even as the Centre is releasing huge funds directly to agencies implementing various schemes under social and economic sectors, the State Government is yet to put in place a mechanism to monitor the utilisation of fund.

Central assistance of Rs 4699.6 crore was directly transferred to the State implementing agencies for major plan schemes in 2013-14. Since there is no single agency monitoring the utilisation of funds, data is not readily available on the amount utilised under different schemes, said the Comptroller and Auditor General (CAG) in its report on State Finance for the last fiscal.

The amount was released under 123 Central schemes during the last fiscal. The major plan schemes include Accelerate Rural Water Supply Programme Rs 317 crore, Integrated Water Management Programme Rs 148.45 crore, National Rural Employment Guarantee Scheme Rs 757.5 crore, Pradhan Mantri Gram Sadak Yojana Rs 758.9 crore and Sarva Siksha Abhiyan Rs 739.6 crore and Rs 444.6 crore for rural housing under IAY.

The State implementing agencies had received Rs 3892.32 crore from the Centre for the Central plan schemes for 2012-13.

Lack of monitoring of these schemes by the Government has led to non-utilisation of funds in time. As a result, the intended benefits are not reaching the beneficiaries.

Since funds flow directly to the implementing agency through off-budget route, it escapes accountability under the Fiscal Responsibility and Budget Management (FRBM) Act. Though the State Government explained that financial transaction of six major schemes are being tracked, it is yet to develop a fully functional monitoring system, the audit said. It further advised the State Government to take necessary steps to finish the incomplete projects in a time-bound manner.


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