The government departments have set an impressive record by increasing the Plan fund absorption.
According to Plan review meeting held here on Wednesday at the behest of Chief Minister Pinarayi Vijayan, the absorption rate till September had touched 40.36% against the 21% during the corresponding period last year. Administrative sanction has been accorded to 93% projects and he directed to clear the remaining 7% by this month end.
The annual Plan for 2017-18 was ₹34, 538 crore. As much as ₹20,272 crore forms the State component. Local governments have expended 21% of the sanctioned funds against the 1% expenditure recorded during the corresponding period last year.
The allocation for local bodies was ₹6,227 crore and Centrally-Sponsored Schemes (CSS) ₹8,039 crore.
The expenditure of CSS has increased from 17% to 29%. This would help avoid bunching of projects at the close of the financial year. Mr. Vijayan directed Chief Secrertary K.M. Abraham to submit recommendations for overcoming the Public Works Department’s delay in preparing estimates and floating tenders.
He directed all departments to expedite the project preparation for rural infrastructure schemes funded by Nabard. The State should not lose the sanctioned Central funds, he said.
He would separately review 85 major projects costing above ₹10 crore for the current year. The total outlay for the schemes is ₹5,190 crore. He asked the officials to expend 67% of the funds by December.
Finance Minister T.M. Thomas Isaac, Mr. Abaraham and Principal Secretary to the Chief Minister Nalini Netto and other senior officials attended the meeting.
