Hyderabad: The Comprehensive Budget Release Order (CBRO) introduced by the AP government with a view to cutting down red tape and facilitating smooth flow of funds to various departments has failed in the implementation stage. The new system remained on paper and the old system is continuing, and the blame is on the present financial crisis.
In the long-existing system, Budget Release Order is issued by the finance department for each quarter of the financial year. It is after passing through six steps, one af-ter another, that a depa-rtment received funds.
In order to ensure a streamlined budget management system and facilitate timely availability of funds to the implementing agencies, the AP government introduced the CBRO system this financial year. In this system, the order for fund release was to be issued in a single go for the approved budget for all four quarters of the year. However, due to the present financial crisis, this new system has failed.
Many departments did not get any funds even as they are in the third quarter of the financial year. As a result, the number of pending bills and the total amount thereof are increasing day by day.
At present, the total money from pending bills touched Rs 5,000 crore. The finance department had issued the CBRO to all the departments, but it also issued instructio-ns to treasuries not to re-lease the funds until permission for each came.
Earlier, when the financial position was bad, the finance department itse-lf stopped the release of funds to various departments. Now, the same is done by treasuries.
For instance, the Skills Development departme-nt had been allotted Rs 350 crore in the Budget. In the first quarter, the fina-nce department released Rs 25 crore. The SD department has sent a request a month ago to the finance department, seeking release of Rs 270 crore.
Till now, funds are not released due to the financial crisis. The government is not clearing bills other than emergency ones, and a lot of bills of the Irrigation department, as also of others, are accumulating with the treasuries.
