Exclusive account for Plan funds

July 09, 2018 12:00 am | Updated 04:53 am IST - THIRUVANANTHAPURAM

Move aimed at timely release of funds for departments

With a view to easing the hurdles in Plan funds spending, the Finance Department has floated an exclusive treasury savings bank account for the timely release and utilisation of funds for departments, autonomous bodies, and public sector undertakings.

Sources told The Hindu that the Plan Scheme Treasury Savings Bank Account would streamline fund release and help monitor the progress in fund absorption by various departments.

Government agencies had parked substantial sums, including their Plan allocation and funds for routine expenses, in the treasury last year. The government withdrew the unspent funds on March 31 and many agencies, including local bodies, were short of cash to meet their expenditure in April.

Borrowing limit curbed

On finding that substantial sums had been parked in the treasury accounts of autonomous institutions and departments, the Centre had curtailed the borrowing limit of the State. The move, along with the delay in Central transfers, had upset the financial transactions and the government was forced to regulate cash outgo from the treasury. It was in this context that an exclusive account was floated for depositing the Plan funds. The funds from this account could be utilised only for making payments to the end beneficiary, the agencies executing Plan projects.

It has also been specified that funds transfer from this account to another treasury savings bank or bank account of any organisation other than the end beneficiary will not be permitted. A clear payment routing system too has been prescribed for meeting the Plan commitments and for making advance payments to implementing agencies.

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