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Central govt. to monitor  indiscriminate fund utilization by states

The central Government is ready to check the different states for their indiscriminate diversion of central funds to various state sponsored schemes. The Finance Ministry is preparing guidelines in this regard.  Once they are ready the Ministry will take stern action in this direction to check such states.

The central Government is of the opinion that states regularly get funds from them and divert the same to the schemes at their discretion and so that the Centre can not get its desired results.  There are many studies that say that various central sponsored schemes for alienation of poverty in the country, the insisted funds are diverted for state owned programmes. 

To stop this practice by the states the center contemplates a plan to open a separate Bank account on the specified central sponsored  schemes . If any state wants to release the funds the amount should be spent for only the respective programme and then only the center will give its nod for withdrawal of the funds.  

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Also the central Government is displeased on the plea that states are being taken funds and claiming that the center is not giving any funds to the states. This type of allegations coming more from non-BJP states, the center observed. 

With the new idea of the Union Finance Ministry there will be no chance to name the respective Chief Minister of  the state. The states will have to follow and name any scheme according to the suggestion of the Central Govt. If it notices any fund diversion then the central government will deduct the funds from the budget allocation to the states.  

The economic experts  suggest the center,  With these measures states will not incur additional debts, and also there will be monitoring on the central funds utilisation. 


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Krishna Kumar

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