Lack of intervention by the State-level Plan Monitoring Committee and a thorough course correction by it are being cited as the prime reasons for the poor Plan fund absorption of local governments.
While official statistics peg the absorption rate of local governments at 20.29 per cent, ₹996.25 crore, out of the total outlay of ₹5,500 crore as on December 31, the real spending at the ground level has been reported at 11.63 per cent, ₹639 crore.
Local Self-Government Department sources told The Hindu here that the functioning of the committee, headed by the Local Administration Minister and comprising the State Planning Board members and senior bureaucrats, needs to be toned up further. It should take the lead in persuading the recalcitrant local governments to honour deadlines and jack up expenditure within the time left in the current financial year.
The committee is expected to closely scrutinise the functioning of local governments and give timely directions to the elected members for bettering their performance.
While the elected members of the local governments blame systemic flaws such as policy changes of the new government, the multiple tasks thrust on them, and the problems thrown up by demonetisation of high-value currency notes for the poor utilisation rate, department sources say that a thorough scrutiny of the committee and a timely course correction would have improved the state of affairs.
Though the previous government had to bear the problems of trifurcation of the Local Administration Department, the committee used to meet regularly and issue directions on key issues. Still, the fund utilisation rate had never been optimum.
There are complaints that senior bureaucrats who play a pivotal role in the committee have not yet taken the task seriously. Many crucial issues that impede the functioning of the local governments remain unaddressed.
Many of the elected members, especially novices, are unsure of the rules and procedures governing Plan projects and tend to defer decisions on key issues. All such issues could be effectively addressed by the committee, sources said.
