Ensure optimal utilisation of funds: Par panel to Textiles Min

A Parliamentary panel has expressed "deep anguish" over the low cumulative utilisation of funds by the Textiles Ministry during the last four years, asking it to ensure optimal utilisation of Plan outlays in the future.
The report by the Standing Committee on Labour chaired by Kirit Somaiya deals with action taken by the government on its observations and recommendations contained in a report on demands for grants (2016-17) of the Ministry of Textiles.
Against the ministry's proposed outlay of Rs 40,203.19 crore for the 12th Plan period (2012-17), the approved outlay was Rs 25,931 crore and the final allocation was Rs 15,215.37 crore at the RE stages.

"Even after such drastic reductions in the Plan outlay, the Ministry has not been able to fully utilise the reduced allocations," the committee said in its report.
The cumulative expenditure from 2012-13 to 2015-16 (as on March 19, 2016) was Rs 12,933.8 crore.
The panel observed that it has time and again impressed upon the ministry to resort to effective measures to overcome the recurrent impediments which have been adversely impacting the utilisation of funds.

"It is high time the Ministry ironed out the deficiencies or anomalies and embarked upon the concrete measures so as to ensure optimal utilisation of the Plan outlays in the coming years," the committee said.

In its reply, the government said that due care is being taken so as to ensure optimal utilisation of approved annual and five year Plan outlay.
The committee also noted that against the Ministry's proposed outlay of Rs 3,829.53 crore for the year 2016-17, the Ministry of Finance had approved Rs 3,500 crore. Rs 150 crore was reduced in the last minute allocations, and the final allocation stood at Rs 3,350 crore.
While rejecting the reasoning given by the Financial Advisor that the cut was a unilateral move and holistic exercise done by the Department of Expenditure, the Committee was of the view that the reduction in allocations might have been done keeping in mind the trend of expenditure and utilisation of funds over the years by the Ministry.

In its action taken note furnished to the committee, the Ministry of Textiles stated that all administrative divisions have been requested to "seriously endeavour for improving the performance in the utilisation of plan outlays so as to stop recurrence of repeated reductions in Budgetary proposals in the future".