AP loses Rs 5,000 crore in central funds due to underutilisation

Vijayawada: The state has lost more than Rs. 5,000 crore in central assistance due to the under-utilisation of centrally sponsored scheme (CSS) funds during the 2025-26 financial year, prompting the govt to issue a stern warning to departments and district administrations.Chief minister N Chandrababu Naidu asked the special chief secretaries and principal secretaries to set their focus on making better utilisation of the funds from the Centre. While the Centre granted nearly Rs. 15,031 crore through 79 different schemes, the state could utilise just around Rs. 9980 crore.Finance secretary D Ronald Rose explained that the Centre allocated Rs. 15,031 crore to the state for 2025-26, out of which the Centre has released funds to the tune of Rs. 11,465 crore. This is nearly 76% of the allocation made by the Centre. “Notwithstanding the revival of several centrally sponsored schemes and the timely release of funds, the state could make use of Rs. 9,980 crore. “Funds were lapsed due to several administrative and technical reasons,” he said.He said the loss of funds was mainly caused by changes in budget estimates, non-release of funds during the fourth quarter, low utilisation levels in some departments, and rejection of bills submitted to the Centre. Ronald Rose cautioned officials that such lapses were unaffordable for a financially stressed state and emphasised the need for close monitoring of expenditure and timely submission of bills.The law, municipal administration and urban development (MA&UD), and higher education departments ensured efficient utilisation and recorded the least amount of lapsed funds. When it comes to the performance of the districts, Konaseema and West Godavari districts topped the state with 99% expenditure, while Srikakulam and Palnadu followed closely with 98% utilisation. However, Alluri Sitarama Raju, Parvathipuram Manyam, and Eluru districts lagged in spending and were instructed to improve monitoring and execution.The secretary also flagged unspent balances of Rs. 438 crore lying in Single Nodal Agency (SNA) accounts. He said a major portion of the pending funds belonged to PM Awas Yojana (Urban and Rural), PM Poshan, and Anganwadi-related schemes. Highlighting problems in the SPARSH portal payment system, Ronald Rose revealed that bills worth Rs. 828 crore submitted during the last week of March 2026 were rejected due to technical issues and a lack of funds in central ministries.“Of this amount, Rs. 491 crore was the Centre’s share while Rs. 337 crore was the state’s share. All departmental secretaries to coordinate with Union ministries and secure fresh “mother sanctions” in the next financial year to recover the rejected claims,” he suggested.