Ministries sitting on funds, may lose unspent chunk

Arun Kumar Das / TNN / Jan 7, 2007, 01:21 IST

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There definitely isn't a fund crunch here. Funds are there, but have simply not been used fully by various ministries.

Ministries sitting on funds, may lose unspent chunk

NEW DELHI: There definitely isn't a fund crunch here. Funds are there, but have simply not been used fully by various ministries. In fact, some haven't used upto 40% of their total allocation.
This, despite the next budget being only three months away. As per the expenditure department, as many as 14 departments have failed to utilise 30% of their allocated budget, while nine have not spent 40% till November-end.
Heading the list of non-spenders is the civil aviation ministry which has not been able to spend even Rs 1 cr of its allocated budget. The ministry spent Rs 66 lakh out of a total allocation of Rs 130 cr.
Incidentally, in the last financial year, the same ministry utilised upto 89% of its budgetary allocation. Minister Praful Patel assures, "Though there were some delays in spending the funds, we will be able to spend the maximum in the coming months."

The ministry of non-conventional energy sources could spend only 18% of its allocated fund — Rs 108.59 cr out of Rs 597 cr.
Minister Vilas Muttemwar admitted that fund utilisation was slow but put the blame at the door of state governments which had to implement projects aimed at electrification of remote villages.
"The process is cumbersome, that's why it is delaying implementation." The ministry of heavy industries and public enterprises is sailing in the same boat.

It could utilise only Rs 92.07 cr (19%) out of Rs 481.50 cr. The ministry of panchayati raj was also a slow spender — only 20% of its total budget was spent.
While the department of tourism spent 27% of its allocated budget, the department of culture spent 34%. Tourism and culture minister Ambika Soni was hopeful of utilising funds to the maximum before the end of the financial year.
"We released a good amount during December and a substantial chunk will be released in the next few months as there are many projects in the pipeline."
These departments will have to forego a good chunk of their budgetary allocation at the end of the current financial year as guidelines have been issued by the ministry of finance to bring discipline and curb last-minute rush by departments to spend the maximum before the financial year ends.
"Expenditure in the last quarter has to be restricted to a maximum of 33% of the budget estimate," says a senior official in the expenditure ministry. However, there are a few departments which have been able to spend a lot.
The department of chemicals and fertilisers, for example, has been able to spend the allocated budget of Rs 229.81 cr almost entirely. Satwant Reddy, secretary, department of chemicals and fertilisers, says, "We utilised all the funds for revival of sick units."
The ministry of urban development and railways spent 71% and 67% respectively of their total budget. The ministry of tribal affairs and agro and rural industries too showed speedy utilisation by spending 64% and 60% respectively of their funds.
HRD ministry and development of north eastern region followed close behind with 58% and 55% utilisation.

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