Funds under centrally sponsored schemes now under Centre’s close watch

0
109

[google-translator]

Monitoring of funds under centrally sponsored schemes in Bihar by the Union government has become stricter with the state government now opening single nodal accounts for all central schemes in scheduled commercial banks on a recent directive from the union finance ministry, said people familiar with the development.

People said the Union finance ministry had directed the state government to open single nodal accounts for all central schemes in a recent communication and also asked to transfer funds under centrally sponsored schemes allocated last year to the new accounts at the earliest.

“Almost all departments have opened single nodal accounts for centrally sponsored schemes in scheduled commercial banks after being asked to do so. It will help in monitoring of funds , expenses and faster release of second instalments of central allocations,” said a finance official, who did not want to be named. There are around 60 centrally sponsored schemes running in Bihar including PMGAY, MGNREGA, national urban health mission, etc.

However, officials in the finance department said the new system applicable from this fiscal year has put the state government under close watch of the Centre because of the strict norms.

Like, under the new provisions, the state government has put matching share of central funds within 40 days of credit of central funds in single nodal accounts. Under the new provisions, the state government has to credit the central funds in single nodal accounts within 21 days after being credited in state consolidated fund by the central government.

That apart, the state government can no longer par funds or put funds earmarked under central schemes in personal ledger ( PL) accounts . People familiar with the matter said the finance department has asked all departmental heads to transfer central funds kept in PL accounts to new single nodal accounts.

“Now, diversion of funds would be difficult as all expenses under central schemes will be monitored live by the Union finance ministry and departments concerned. Besides, matching state share has to be given on time for centrally sponsored scheme as otherwise, it could lead to delay in release in second instalments,” said another officer, in know of the matter.

While the new system is applicable for all states across India from this fiscal, officials said the recent directive from the Union finance ministry indicates the union government is keen on close monitoring of utilisation of central funds.

After the formation of grand alliance government on August 10, the ruling Janata Dal (United), or JD(U), has accused Centre of not giving enough central assistance under Samagra Skikha Abiyan (SSA) and other central schemes, whereas the Opposition Bharatiya Janata Party (BJP) had rubbished it.

Bihar has so far got around 41,000 crore in last seven months as central devolutions under the state’s share in central taxes against the targeted 91,180 crore.

Additional chief secretary , finance, S Siddharth could not be reached for comments.


Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here