Par panel seeks strong fund utilisation mechanism for UTs

A parliamentary panel has taken strong exception to the sub-optimal expenditure incurred by most of the Union Territories, saying unless they set up strong utilisation credentials, their demands for more funds may not be acceded.

The parliamentary standing committee on Ministry of Home Affairs, headed by Congress leader P Chidambaram, said it was aware that the UTs have been pleading for more funds every fiscal for development activities but the trend of expenditure is not convincing enough to justify the demands for higher allocations.

"The committee fears that unless the UTs establish strong fund utilisation credentials, their demands for higher allocations may not be acceded by the ministry of finance," the panel said in its report submitted to Rajya Sabha on Thursday.

The Union Territories of Andaman and Nicobar Islands, Lakshadweep, Puducherry, Dadar and Nagar Haveli, Diu and Daman, Chandigarh and Delhi come under the administrative control of the ministry of home affairs.

The committee, therefore, recommended that the UTs must demonstrate a strong conviction for achieving optimal fund utilisation in every quarter.

"The committee also recommends that the ministry of home affairs may review the fund utilisation status of every UT on a monthly basis and implement corrective measures in a proactive manner," the report said.

The panel suggested that the ministry of home affairs should strongly advice the UT administrations to follow the direction for strict compliance.

It said that the home ministry must ensure that the fund utilisation status of every UT be reviewed on a monthly basis and corrective measures are taken in a proactive manner.