Over Rs 5,000 cr for Panchayati Raj schemes remains unspent

Over Rs 5,000 crore for schemes, especially the Backward Region Grant Fund (BRGF), under the Ministry of Panchayati Raj remains unspent, a parliamentary panel said today.
The Standing Committee on Rural Development, whose report was tabled in Parliament today, said it was constrained to note that a huge amount of funds was lying unspent in the schemes of the Ministry of Panchayati Raj during 2014-15, especially under BRGF.
"In this regard, the Committee notes that as on 31.12.2014, Rs. 5129.48 crore was lying unspent, which includes Rs. 4524.94 crore under BRGF," the report said.
In turn, the ministry apprised the committee that it would write to the states about the unspent money for already approved projects and issue advisory to ensure that they are completed so that there is no infructuous expenditure.

Meanwhile, the Committee also expressed its dismay over the drastic budgetary reduction for the Ministry of Panchayati Raj this fiscal, saying that there has been a substantial cut of about 98.65 per cent in the Plan outlay allocated for 2015-16 when compared to the previous year of 2014-15.
"The Committee is astonished to note that the funds proposed by the ministry for the plan schemes for the plan schemes for 2015-16 is Rs. 10,150 crore, but the funds provided to the Ministry is a very meager amount of Rs. 94 crore," the report said.
Noting that the allocated funds were inadequate, the committee strongly recommended the ministry to vigorously pursue the matter with the Ministry of Finance and Niti Ayog and request them to consider enhanced budgetary allocation of funds for the capacity building and strengthening of Panchayati Raj institutions across the country.

The Committee also noted that the ministry should support states in completion of already approved projects that are underway and persuade states in strengthening of Panchayati Raj institutions.