No data on Rs 33,000 cr schemes

The quarterly review of the economy tabled in Parliament on Wednesday revealed that the government had not received any feedback on Rs 33,000 crore released to states and autonomous bodies during the first quarter for implementing various schemes.

The Centre's expenditure rose 4.3 per cent to Rs 93,584 crore during April-June 2005.

Nearly one-third of this amount on which feedback has not been received pertained to rural development.

Pointing to the Central Road Fund, which had a balance of Rs 4,123 crore at the end of June, the paper also said accumulation of sizable funds in the reserve fund for want of utilisation was a cause of concern.

"Canons of financial propriety require that moneys should be drawn from the government account only when imminently required for final expenditure," the review said.

The finance ministry had instructed other ministries and departments against releasing funds, without its consent, to entities that defaulted in furnishing utilisation certificates. After giving adequate notice, the government would also consider adjustment of overdues from future releases.

During the first quarter, revenue expenditure rose 10.8 per cent, partly due to higher grants-in-aid, while capital expenditure fell 35 per cent, mainly on account of no plan loans being given to states and cuts in defence capital expenditure.

Plan expenditure rose 5.3 per cent to Rs 24,254 crore at the end of June 2005, while non-plan expenditure went up 4 per cent to Rs 69,330 crore during the period.

Within non-plan expenditure, interest payments constituted the biggest chunk, followed by equal shares for defence services and subsidies.

Ministry-wise, first quarter expenditure on non-plan account, as a percentage of Budget estimates for the full year, were significantly higher than last year in case of the agriculture ministry and rural development ministry. It indicated that these ministries had managed to spend a greater proportion of their allocations in April-June 2005.

Among the other ministries important from the National Common Minimum Point of view, in human resources, the expenditure proportion was the same as last year, while in case of health and family welfare, it was significantly lower.

Under the plan head, expenditure on Central Plan was Rs 20,223 crore in April-June 2005, up from Rs 15,012 crore in the corresponding period in 2004, an increase of almost 35 per cent.

Expenditure on state and union territory plans were, however, down by almost half from Rs 8,023 crore in Q1 in 2004 to Rs 4,031 crore in Q1 2005.

Ministry-wise, plan expenditure by the ministries of agriculture and human resource development was significantly higher in Q1 in 2005, compared with the corresponding period in 2004.

Expenditure by the rural development ministry, was however down by 508 per cent from Rs 4,877 crore to Rs 4,369 crore.

First quarter plan expenditure as a per cent of the budgeted plan amount, was marginally up in this fiscal, in case of the agriculture ministry, and lower in case of human resource development and rural development ministries. Health and family welfare, reported the same per cent of plan expenditure in the first quarter as last year.