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 Up loaded on Wednesday June 06, 2012

Parliamentary Committee irked by under-utilisation of funds: I&B

source:http://www.radioandmusic.com

        NEW DELHI: Irked by consistent under-spending and under-utilization of funds by the Information and Broadcasting Ministry, a Parliamentary Committee has asked the Ministry to identify the grey areas, make the implementation of its schemes more effective and step up the monitoring mechanism so as to ensure optimum utilisation of funds.

Taking note of the observation before the Standing Committee for Information Technology by the Secretary in the Ministry that the under-utilisation and approval of schemes was primarily due to the problems in Prasar Bharati which depended on the Ministry for its funding, the Committee has expressed the hope that the problems relating to Prasar Bharati are addressed and ways are found during the Twelfth Plan resulting into effective implementation of various programmes which would ensure cent per cent utilisation of the outlay.

The Secretary had told the Committee that these problems would ease after the Government accepts the recommendations of the Group of Ministers on Prasar Bharati. But the Committee noted that the same reasons have continuously been repeated by the Ministry, whenever the question of under spending has been raised by the Committee.

The Committee emphasized the need for periodic close monitoring of the implementation as well as the expenditure position under the three sectors - Broadcasting, Film and Information.

The Ministry should make serious efforts to identify the weakness in the system and streamline the planning process so as to ensure effective utilization of Plan outlay - Rs 13.05 billion - during the year 2012-13.

The financial performance of the Ministry particularly under the Plan schemes during the Eleventh Plan has not been very satisfactory, the Committee noted. The allocations provided at Budget Estimates were reduced at Revised Estimates stage due to overall trend of utilization. Even the reduced allocations could not be utilized fully resulting into under spending of the scarce resources during each year of the Eleventh Plan.

The Committee said the Ministry was allocated Rs 36.86 billion at the Budget Estimate stage against the projections of Rs 781.212 billion if the overall allocations during the Eleventh Plan (which ended on 31 March 2012) as a whole are taken into consideration. The BE allocations were then reduced to Rs 31.44 billion at the Revised Estimates stage. The utilization is to the tune of Rs 25.79 billion, thus resulting into under spending of Rs 5.64 billion. The under spending is more during the years 2008-09 and 2010-11 when 66.99 per cent and 74.74 per cent of the outlay respectively could be utilized.
The Committee observed that the Ministry had proposed the Demands for Grants for the year 2012-13 amounting to Rs 27.37 billion which comprises Rs 9.05 billion as the Plan outlay and Rs 18.32 billion as the Non-Plan outlay.

The financial performance of the Ministry particularly under the Plan schemes during the Eleventh Plan ‘has not been very satisfactory’, the Committee notes. The allocations provided at Budget Estimates were reduced at Revised Estimates stage due to overall trend of utilization. ‘Even the reduced allocations could not be utilized fully resulting into under spending of the scarce resources during each year of the Eleventh Plan’.

The Committee has consistently been saying that under spending results in blocking of the national resources.

The Committee observed that during the year 2011-12, out of the proposed allocation of Rs 20.26 billion under the non-Plan head for the three Sectors - Film, Information and Broadcasting, the BE was Rs 17.83 billion, which was increased to Rs 18.18 billon at the RE stage, but the Actual Expenditure was Rs 18.13 billion, 99.74 per cent of the RE allocation.

The Committee also observe that the proposed allocation of the Ministry for the year 2012-13 under non-Plan head is Rs 18.32 billion which is more than double of the Plan Outlay of Rs 9.05 billion.

Justifying the increase, the Secretary has stated that many of the spending of Prasar Bharati is evaluated in terms of creating infrastructure. Furthermore for many programmes of Directorate of Field Publicity (DFP) and the Song and Drama Division, a lot of expenditure takes place through non-Plan budget and the outputs are not tangible.

While appreciating the facts enumerated by the Secretary, the Committee would like the Ministry to give the details of the activities under non-Plan head for which the allocations during 2012-13 have almost been double. Besides, the Committee would like to emphasize for rationalization of expenditure under the non-Plan head as per the General Financial Rules. The Ministry should try to contain its expenditure in non-Plan head so as to have a proper balance between the Plan and non-Plan head, the Ministry says.

 

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