Assam: Departments not Adhering to Time Guidelines for Budgetary Spending

Staff Reporter

Guwahati: For timely expenditure of amounts allocated in the budget, the Finance Department had drawn up guidelines, but departments are not following them due to various reasons.

According to the guidelines, in the first quarter of the financial year, i.e., from April to June, departments have to spend 20% of the allocated amounts. From July to September, the departments concerned have to spend 30%. Again, from October to December, the departments have to spend 30%, and from January to March, the remaining 20% has to be spent.

Generally, it has been the practice among the departments not to spend a majority of the amount throughout the year and then rush to spend the money in the last few months of the financial year. This frantic spending of the allocated money at the fag-end of the financial year is likely to result in a financially chaotic situation.

In the current financial year of 2024-25, it has been seen so far that only 32% of the allocated money on average has been spent, although the guidelines stipulate that more than 50% should be spent.

Allocation of funds is made under two heads; one is the salary and other expenses, while the other is for development work. The guidelines have been put in place for the component of development work funds. Sources said that, as of October 31, the state Tourism department has spent 8%, the Guwahati Development department 17%, Skill Development department 17%, Hill Areas development 5%, Minority development 28%, Industry and Corporations 4%, etc.

The sources added that the funds allocated for development work are fixed for different schemes. After the passing of the budget, the departments have to plan an estimate of the particular schemes. These are sent to the Finance Department for approval. After getting approval, they go to the technical section. After the technical section gives the okay, tenders are floated. After completing a part of the work with their own resources, the contractors submit a part-bill, and the department moves the bills to the Finance Department for payment.

It was alleged by the sources that administrative approval of schemes is delayed by the Finance Department by making various queries. Sometimes, the technical section also delays the approval. So, a lot of time gets wasted, and implementation of the schemes on the ground is also delayed. If approval of the schemes is delayed, the initial work gets delayed, and the department is unable to spend the stipulated amount on schedule. This is a vicious circle that leads to development projects not being completed on time.

Official sources said that when a scheme is submitted for approval, it has to go through the mandatory detailed examination and queries are made. If everything is alright, the scheme is cleared. At times, departments have to be reminded to submit their schemes on time. In this financial year, the Lok Sabha election delayed the schemes, and the lengthy rainy season also hampered implementation of schemes. But the budgetary expenditure record of the state government in the last few years has been good, they stated.

Speaking of the state budget for 2024–25, Finance Minister Ajanta Neog said that budgetary expenditure has increased to Rs 1.27 lakh crore in the financial year (FY) 2022–23, as compared to Rs 41,931 crore in FY 2015–16. Capital expenditure has increased from Rs 2,951 crore in FY 2015-16 to Rs 16,338 crore in FY 2022-23, the minister added.

Also Read: Budgetary allocations: Government spends Rs 1.26L crore in last fiscal

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