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Inflated outlay casts shadow on budget
The inflated Plan outlay endorsed by the Planning Commission in 2011 for the current fiscal (2011-12) of Jharkhand has started casting its shadow on growth during the next financial year for which the Plan outlay is under preparation.
Of Rs 15,300 crore Plan outlay, a mere Rs 4,400 crore has been utilised so far that prompted Chief Minister Arjun Munda reprimand officials to balloon the budget for the next fiscal. In addition, there is a non-Plan outlay of about Rs 18,000 crore taking the size of the total budget for the current fiscal to Rs 33,000 crore.
In the backdrop of non-utilisation of funds, the State Government is in a fix to determine the size of the budget for the next fiscal. The Government could neither afford to downsize the outlay with the avowed objective to retain its credentials nor can it make an oversize budget for fear of possible queries by the Planning Commission in the light of its expenditure in the current fiscal. Well-placed sources in the State Finance Department informed that the Chief Minister was articulate in getting his views across that the budget should not be an oversized balloon. He stressed upon the need to prepare a budget that did not put the State in an embarrassing situation. In the run-up to the crucial budget session from March 3, the CM held a meeting with top officials on Tuesday to review the utilisation status of funds.
In fact, the whopping Plan outlay for the current fiscal includes about Rs 5,000 crore to be accrued from the Central assistance against production of utilisation certificate or the State’s share in the Central exchequer. Incidentally, the State that has already been reeling under resource crunch and non-expenditure plight can neither afford to stake claim for further assistance from the Centre for want of utilisation certificate nor can it procure enough against its share in the Central exchequer. With the implementation of projects going awry during the current fiscal, the Government can hardly take up new projects during the next financial year too that would have an explicit impact on the growth of the State.
Well-placed sources in the Government claimed that the Government had been in a fix over implementing the major projects also owing to the resource crunch. In order to meet a total outlay of Rs 33,000 crore — Plan and non-Plan both — the Government has resources of about Rs 10,000 crore so far. Against an estimated Additional Central
Assistance of Rs 3,200 crore, it has had Rs 800 crore. Its internal resources are to the tune of Rs 5,300 crore and it has had a share from the Central taxes of Rs 4,000 crore too.
The Government believes that the non-expenditure of funds has proved to be a boon in disguise. Those in authority contended that with the wide gap between resources and outlay, the Government coffers have survived largely thanks to the non-expenditure. Indeed, if the expenditure was made as per the inflated outlay, it would affect the
Government coffers adversely and if the schemes were not implemented, the development of the State would suffer, they opined. The Government could not, however, execute projects of more than Rs 6,000 crore, sources believed.
Despite all this, the Government is hopeful about getting the budget endorsed from the Planning Commission.
The inflated Plan outlay endorsed by the Planning Commission in 2011 for the current fiscal (2011-12) of Jharkhand has started casting its shadow on growth during the next financial year for which the Plan outlay is under preparation.
Of Rs 15,300 crore Plan outlay, a mere Rs 4,400 crore has been utilised so far that prompted Chief Minister Arjun Munda reprimand officials to balloon the budget for the next fiscal. In addition, there is a non-Plan outlay of about Rs 18,000 crore taking the size of the total budget for the current fiscal to Rs 33,000 crore.
In the backdrop of non-utilisation of funds, the State Government is in a fix to determine the size of the budget for the next fiscal. The Government could neither afford to downsize the outlay with the avowed objective to retain its credentials nor can it make an oversize budget for fear of possible queries by the Planning Commission in the light of its expenditure in the current fiscal. Well-placed sources in the State Finance Department informed that the Chief Minister was articulate in getting his views across that the budget should not be an oversized balloon. He stressed upon the need to prepare a budget that did not put the State in an embarrassing situation. In the run-up to the crucial budget session from March 3, the CM held a meeting with top officials on Tuesday to review the utilisation status of funds.
In fact, the whopping Plan outlay for the current fiscal includes about Rs 5,000 crore to be accrued from the Central assistance against production of utilisation certificate or the State’s share in the Central exchequer. Incidentally, the State that has already been reeling under resource crunch and non-expenditure plight can neither afford to stake claim for further assistance from the Centre for want of utilisation certificate nor can it procure enough against its share in the Central exchequer. With the implementation of projects going awry during the current fiscal, the Government can hardly take up new projects during the next financial year too that would have an explicit impact on the growth of the State.
Well-placed sources in the Government claimed that the Government had been in a fix over implementing the major projects also owing to the resource crunch. In order to meet a total outlay of Rs 33,000 crore — Plan and non-Plan both — the Government has resources of about Rs 10,000 crore so far. Against an estimated Additional Central
Assistance of Rs 3,200 crore, it has had Rs 800 crore. Its internal resources are to the tune of Rs 5,300 crore and it has had a share from the Central taxes of Rs 4,000 crore too.
The Government believes that the non-expenditure of funds has proved to be a boon in disguise. Those in authority contended that with the wide gap between resources and outlay, the Government coffers have survived largely thanks to the non-expenditure. Indeed, if the expenditure was made as per the inflated outlay, it would affect the
Government coffers adversely and if the schemes were not implemented, the development of the State would suffer, they opined. The Government could not, however, execute projects of more than Rs 6,000 crore, sources believed.
Despite all this, the Government is hopeful about getting the budget endorsed from the Planning Commission.
