Nine government departments- works, rural development, water resources, women & child development, forest & environment, commerce & transport, agriculture, housing & urban development and panchayati raj have been urged to ensure at least 25 per cent spending in first quarter of 2011-12.
With spending of allocated funds being the top priority, the Cash Management System (CMS) guidelines have been tweaked by the finance department for these departments. For all other departments, CMS mandates spending of at least 15 per cent of fund allocation in the first quarter of any fiscal.
“A meeting was held recently to review expenditure by 13 government departments that account for 71 per cent of the total Plan provision. Nine departments have been urged to achieve 25 per cent expenditure by the end of June”, said a senior official of Planning & Coordination department.
While the administrative departments are free to enhance spending in the first three quarters, they are required to cap the expenditure at 40 per cent in the last quarter and 15 per cent in the last month (March) as per CMS.
In case of externally aided projects in the pipeline, expenditure needed to be incurred only if agreement with the donor agency has been signed and the date of effect of the agreement has been notified.
The Integrated Odisha Treasury Management System has been so enabled that it will not admit expenditure in excess of 40 per cent of Budget provision during the last quarter and 15 per cent in the month of March under any demand for grant under CMS.
Plan and Non-Plan spending stood at 82.92 per cent of the overall provision in 2011-12. Of the total Plan and Non-Plan provision of Rs 50,772.37 crore for the previous fiscal, 38 departments have clocked expenditure totaling to Rs 42,098.74 crore with 13 departments recording spending level beyond 90 per cent of the allocated funds.
Total spending at Rs 42,098.74 crore in 2011-12 marks a growth of 24.93 per cent over Rs 33,697.74 crore logged in 2010-11. Expenditure under State Plan in 2011-12 was Rs 12,275.32 crore, meaning an achievement of 80.75 per cent of the outlay of Rs 15,200 crore.
Similarly, Non-Plan spending at Rs 27,668.73 crore in 2011-12 is an achievement of 83.5 per cent over a provision of Rs 33,136.03 crore including supplementary budget provision of Rs 2,377.81 crore. The Non-Plan expenditure has also witnessed growth of 24.56 per cent over Rs 22,212.88 crore achieved in 2010-11.
