Cautioned, learned from last year's fiasco, govt calls for expediting pace of expenditure

TNN Bureau. Updated: 10/17/2017 1:06:32 AM Front Page

'Unutilised funds over and above 30% of allocation to forfeit on Dec 31'

JAMMU: Fresh from the heavy criticism it faced upon a CAG report which revealed that over 42% of total expenditure in financial year 2015-16 was spent in last quarter- a clear violation of Jammu and Kashmir's financial code, the state government on Monday has taken to task all its departments, directing them to expedite the pace of expenditure while asserting that expenditure during the last quarter of the financial year 2017-18 shall be limited to 30% budget allocation and the unutilized portion over and above the fixed criteria will be automatically forfeited.
"In view of the timely release of funds to the line departments for the current fiscal, in February 2017, by the Finance and Planning & Development Departments, there is absolutely no reason that balanced pace of expenditure should not be ensured by all the departments," the official order issued by the Principal Secretary Finance read.
Reiterating an earlier decision of February 2017, it said that expenditure during the last quarter of the Financial Year 2017-18 shall be limited to 30 per cent budget allocation on both Revenue and Capex side.
"All the un-utilized funds over and above 30% of the budgeted amount as on 3I December 2017 shall be automatically forfeited and will not be allowed to be used for any other purposes," the order said adding that the expenditure should not be more 15% of the budget estimates in the month of March 2018.
The cautious approach by the government can be attributed to a recent report of the Comptroller and Auditor General (CAG) of India on state finances for previous financial year which was tabled in state legislature in June this year, revealing that in a sheer violation of Jammu and Kashmir's financial code on rush of expenditure, the state government spent Rs 23,234 crore in 29 grants in the last quarter of the fiscal 2015-16, which is over 42 per cent of the total expenditure of Rs 54,660 crore, well over the prescribed limit of 30%.
Some of the departments had reportedly spent as much as half all of its allocated budget in the last quarter itself. Ladakh Affairs Department topped the cases of rush of expenditure with 97 per cent of the total spending, Rs 743.05 crore out of allocated Rs 763.51 crore, incurred in the last quarter of that fiscal.
According to Jammu and Kashmir Financial Code, rush of expenditure in the closing month of a financial year should be avoided. However, not withstanding that, out of the revenue department's total expenditure of Rs 1698.87 crore, Rs 1132.80 crore, 76% was spent in the last quarter, followed by the Stationary and Printing Department which spent 72% of the total expenditure of Rs 168.43 crore in the last quarter.
These were followed by the transport department (64%), the Social Welfare department (59%), the planning department (59%) and the Tourism department (54%), the CAG report said, thus bringing a lot of criticism for the state government.
On Monday, the government reminded the departments of early release of funds this fiscal in pursuance to the announcement of a slew of measures aimed at streamlining the expenditure with systematic spending initiatives as a first step towards bringing economic stability in the State by the Finance Minister, Dr Haseeb Drabu in his budget speech in the State Legislature January this year.
Pertinently, as a major expenditure reform initiative aimed at streamlining and speeding up spending in the Government Departments, the Finance Department had for the first time in the fiscal history of J&K released 50% of the current year's budget allocation to all the Departments in February 2017 well in advance to ensure timely execution of the developmental works.
Following that up, the government seems determined on avoiding any fiasco like last year's as it reiterated on Monday that all powers related to re-appropriation and re-distribution of funds vested in the Administrative Departments, HoDS and DDOs stand withdrawn and any proposal for re-appropriation will be considered on merits in the Finance Department only in respect of savings to be utilized for authorized pending work done liabilities, salary shortfalls etc.
"Payments in the last month shall be made only for goods and services already procured. No amounts shall be released in advance except in cases of advance payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations, any loans or advances to Government servants etc or private individuals as a measure of relief and rehabilitation as per service conditions or on compassionate grounds and any other exceptional case with the approval of the Finance Department," the official order read.
The order said that the rush of expenditure on procurement should be avoided during the last month of the financial year so as to ensure that all procedures are complied with and there is no infructuous or wasteful expenditure. The Director Finance/Financial Advisors have been asked to specially monitor this aspect in their respective departments.
"Proposals of Advance Drawal, Revalidation, Authorization etc. if any, pertaining to Financial Year 2017-18 shall be submitted to the Finance Department well before 28 February 2018. No such proposal shall be entertained by the Finance Department after 28 February 201 8," it said adding that the proposals for parking of money in "Civil Deposits" in order to avoid lapsing of funds shall not be entertained and processed. "Issuance of Hundies stands already banned. The Departments are advised not to move any proposal in this regard.
Treasury Offices will not entertain any bill/cheque for payment after working hours on 29 March 2018, pertaining to the Financial Year 2017-18 and all the DDOs have been asked to plan their bill presentations accordingly at treasury.
"Under no circumstances, any Bill in respect of Financial Year 2017-18 will be received in the Treasuries on the last two working days of financial year i.e. 30 and 31 March 2018, the date on which only payments will be made and accounts reconciled," it said adding that the Administrative Secretaries must effectively supervise and shall be responsible for ensuring compliance of these fiscal measures.
"Financial Advisors shall assist the respective Departments in securing compliance with these measures and also submit regular report to the Department of Finance," the order said.


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