Uncertainty Over Central Funds to Affect Execution of Schemes in Odisha

State Govt uncertain about quantum of funds it will receive from the Centre

Published: 20th July 2015 05:48 AM  |   Last Updated: 20th July 2015 05:48 AM   |  A+A-

BHUBANESWAR: Even after first quarter of the current financial year, the State Government is uncertain about the quantum of funds it will receive from the Centre for rural roads, drinking water supply and sanitation programmes.

Setting a target to construct 3,000 km of road under Pradhan Matri Gram Sadak Yojana (PMGSY) for providing all-weather connectivity to 1,700 habitations in 2015-16, the Government has made provision of Rs 1,900 crore in the budget anticipating Central assistance of Rs 1,800 crore.

The Ministry of Rural Development (MoRD) had indicated an annual allocation of Rs 893 crore for projects already sanctioned and released about Rs 355 crore in May.

The indicative annual allocation of funds will be subject to upward/downward revision keeping in view the pace of actual expenditure and availability of funds, stated a recent communication from MoRD.

“Since PMGSY is a fully funded Central scheme, it will be impossible to award contracts for road projects without knowing the availability of funds from the Centre,” a senior officer of Rural Development Department said.

The Rs 355 crore released by the Centre was paid towards outstanding dues of contractors. The State has no more fund to take up projects sanctioned by the MoRD, sources said.

Similar is the fate of rural water supply sector. The Government has planned to set up 1300 pipe water supply projects and develop nearly 26,000 spot sources for drinking water supply in 2015-16.

The Government has made a budgetary provision of Rs 469 crore anticipating Central assistance of Rs 235 crore under National Drinking water Programme (NRDWP). The Centre has not released a single pie so far, the sources maintained.

Under Swachh Bharat programme, a Centrally funded scheme, the State Government has made a budgetary provision of Rs 666 crore. The sanitation campaign has hit a roadblock due to paucity of fund. The MoRD has released only Rs 7 crore to the State.

In view of the changed funding pattern for 33 Centrally sponsored schemes (CSSs), the Finance Department has advised the departments executing CSSs to utilise funds after ascertaining the funds availability from the Ministry concerned.

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