CAG: Non-release of Central fund delayed PMGSY implementation CAG: Non-release of Central fund delayed PMGSY implementation

The Comptroller and Auditor General of India (CAG) found that non release of Central Government fund was one of the main reason for delayed implementation of Pradhan Mantri Gram Sadak Yojona , one of the prime flagship programme of the NDA government. The report was tabled last Friday in the both Houses of the Parliament. 

The Pradhan Mantri Gram Sadak Yojona (PMGSY) is a 100 per cent Centrally sponsored scheme  and PMGSY-II (launched in May 2013) is on cost sharing basis between the Centre and states in the ratio of 75/25 in normal areas and 9010 in special category states. CAG found that under PMGSY-II, the ministry had released funds to only two states Haryana and Karnataka amounting to Rs 244.27 crores and Rs 235.22 crores respectively up to march 2015.

Till 2013-14, Central Government released funds directly to the state Rural Road Development Agency(SRRDA).However from 2014-15 onwards, funds are routed through the consolidated Fund of State and the state governments are required to transfer these funds to SRRDA within 3 working days of receipt of funds.CAG observed instances of delayed release of funds to the states. Report said that the ministry accepted (April 2016) the fact of short release and replied to CAG that works sanctioned to the states were two or three times of their allocation resulting in spillover to subsequent years and reduction in the allocations in the revised estimate stage.

A detailed analysis of Uttar Pradesh and Uttarakhand , which recently went to the poll, clearly showed that funds were not given to states on time. In Uttar Pradesh, out of the Central share of Rs 179.95 crore cleared for the projects in September 2010, only Rs 51.73 crore as part of instalment was released in March 2015 with a delay of four years. Under PMGSY-II projects with Central share of Rs 1134.54 crore cleared in January 2014, funds were not released till March 2015 due to non-furnishing of conditions imposed in clearance letter which was opposed by the state government.

But in the case of Uttarakhand, it was non-functioning on the part of state government that Central funds were not utilised. In 12 phase from 2000 to 2015 ,out of Rs 2806.28 crore (Central share), Rs 1650.06 crore had been released to the state till 2014-15, the Audit observed that during 2010-11 to 2012-13,short release was due to slow down absorption capacity of the state. This dismal picture of Governance had perhaps played a role in the defeat of the Congress government.

In case of West Bengal, strange fact is brought out by the CAG. Against the clearance of projects (phase VIII) worth Rs 71.41 crores in 2009-10 and Rs 251.29 crores was released in 2011-12. Funds against these projects were not released thereafter till March 2015. Against the projects (Phase-IX) worth Rs 635.41 crores cleared in 2011-12, but first instalment of Rs 306.17 crore was released in 2014-15.

In respect of projects worth Rs 3483.19 crore (Phase-X) and Rs 523.61 crore (Phase-XI) cleared in 2011-12 and 2012-13 respectively, only Rs 752.84 crore and Rs 246.73 were released in 2014-15.