Local self-government institutions are apprehensive over the prospects of using unspent development funds to the tune of Rs.4,900 crore as the government was yet to give permission to expend it in 2016-17.
While the elected representatives are squarely placing the onus for the poor fund absorption rate of 47.48 per cent on the Lok Sabha elections and the local body elections, skewed planning and development priorities are also being cited as the prime reasons for making use of the devolved funds within the available time.
Poll campaign
Since the members of all local governments are also active in politics, they were holding prime responsibilities in the Lok Sabha election campaign for their party nominees. Hence, they could not devote much time for executing the development schemes envisaged within their purview. The model code of conduct for the election is also being blamed for the poor absorption rate.
Soon after, all of them became busy with the preparations for the local government general elections and gave a virtual holiday for the project execution process. The net result is that development funds to the tune of Rs.4,900 crore devolved for the current year remains unutilised.
Local Self-Government Department sources told The Hindu that bills of completed projects worth around Rs.40 crore presented by local governments have not been cleared so far.
Though the Finance Department had clarified that the funds crunch would not impede such payments, the bills were pending clearance, sources said.
Following the introduction of bill system, the government could easily reject any payment citing technical reasons. As per the new system, the government would not deposit funds to accounts of the local governments. Instead, they have to submit bills of completed works for getting payment from the treasury.
Even if the government grants permission to the local governments to utilise the unspent development fund next year, it could well stop the payment through undeclared treasury payment restrictions. This calls for a categorical assurance from the government that financial stringency would not come in the way of clearing such bills. But no assurance has been given so far. The new government would have to take a call on the issue, sources said.
