Plan expenditure lacklustre at 18.68% in April-July

This, even less than 23.53% logged in corresponding period of 2012-13

Plan spending by government departments in Odisha is woeful in the April-July period of this fiscal at only 18.68 per cent. This is even less than 23.53 per cent logged in the corresponding period of 2012-13.

Out of the total Budget estimate (BE) of Rs 19,368.20 crore under Plan expenditure for the current fiscal, actual spending till July was only Rs 3,617.10 crore.

While the department of science & technology failed to spend even a single rupee during the period, spending by some other departments like information technology (0.10 per cent), transport (1.06 per cent), home (7.20 per cent), general administration (5.93 per cent), revenue & disaster management (3.15 per cent), fisheries and animal resources development (9.34 per cent), cooperation (5.34 per cent), health & family welfare (1.15 per cent), labour and employees state insurance (0.88 per cent) and higher education (5.65 per cent) was also lacklustre.

Taking serious note of the tepid Plan spending, state chief secretary J K Mohapatra has emphasised on stepping up expenditure to achieve the cumulative target by the end of the second quarter.

For 2013-14, the finance department has prepared a set of guidelines for utilisation of Budgeted funds by the administrative departments.

According to these guidelines, highest priority has to be given for expenditure on creation of capital assets, completion of projects, reduction in Non-Plan expenditure and cost of operation of various services.

The departments are to release funds according to a definite action plan for achieving the quantifiable physical target fixed for 2013-14. The department secretaries will review physical achievement against expenditure by 15th of every month.

The guidelines state that while releasing funds, priority should be given for programmes or schemes where expenditure is reimbursable. This can include the state government’s flagship programmes like Biju KBK (Kalahandi-Bolangir-Koraput) Yojana, Gopabandhu Grameen Yojana, Biju Gram Jyoti, Biju Saharanchal Yojana, Mo Kudia, Madhubabbu Pension Yojana and Biju Setu Yojana.

Since the expenditure pattern in the state is largely skewed and back loaded, the finance department has emphasised on even pacing of expenditure commensurate with revenue receipts, it has suggested administrative departments to formulate monthly and quarterly expenditure plans from the beginning of the year to avoid rush of expenditure towards the year-end.

Reiterating the guidelines of the Cash Management System introduced in 2010-11, the finance department has asked departments to restrict spending to 40 per cent for the last quarter (January-March period) and 15 per cent for the last month (March) of the fiscal.