THIRUVANANTHAPURAM: A fag-end surge in spending, the kind of chaotic last-minute splurge that economists have consistently warned against, has resulted in a plan fund utilisation of 77 percent for 2016-17. Though this is lower than the ‘claimed’ utilisation during the UDF tenure, it has been achieved in a shorter span as the new LDF government tabled its ‘alteration memorandum’ only on July 8 and it took another two months for the full budget to be passed. In short, the state had less than six months to utilise its plan outlay of Rs 24,000 crore, and ultimately the government seems to have managed to spend Rs 18,480 (77 percent) in the given time.
The utilisation is commendable for local bodies, 85 percent; this means together they have utilised Rs 4,675 crore of the Rs 5,500 crore earmarked for them. Even Finance Department officials are suspicious about the quality of such expenditure. “Bunching of expenditure towards the end of the fiscal will definitely compromise quality,” a top official said. Nonetheless, the official said that the state plan outlay was “generally well spent”. “We took special care to ensure that departments do not fake high utilisation,” the official said. As a fiscal enters it last days, it is usual for government departments to draw huge amounts as cash and demand drafts to avoid lapse of allocated amounts.
Such withdrawals are made in respect of incomplete works and purchases in violation of financial propriety norms. What’s more, this money is not drawn for any actual expenditure, but only to be kept idle in a separate bank account causing huge and unnecessary outgo from the Consolidated Fund of the state. But this fiscal, funds were disbursed only for actual expenditure and all claims had to be backed by purchase bills, expenditure statements and other documents. “Another common practice is the presentation of large numbers of bills, cheques, and chalans to the treasuries towards the end of the financial year. At such a late hour, it is virtually impossible to scrutinise them properly,” the official said. To prevent the late bunching, the Finance Department directed departments to present bills at least two days in advance this time.
