‘Red tape to blame for poor spending by state' | mumbai | Hindustan Times
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‘Red tape to blame for poor spending by state'

In the last eleven months, from April 2010, the state government’s various departments have spent just 36.7% of the planned budget, while a little more than 49% of the funds have actually been made available for spending.

mumbai Updated: Feb 16, 2011 01:53 IST
Ketaki Ghoge

In the last eleven months, from April 2010, the state government’s various departments have spent just 36.7% of the planned budget, while a little more than 49% of the funds have actually been made available for spending.

Experts say this points to red tape and an overall inability to take swifter decisions. Poor spending has been the trend in the last three years of the DF government. While the planned budget has increased from Rs 30,662 crore to Rs 63,668 crore (in the election year of 2009), overall spending has decreased from 52% in 2008-09 to 36% in 2010-11.

Most of these funds were budgeted for development work like infrastructure projects, construction of basic amenities, upgradation of health care and education besides purchase of modern equipment and technology that could have improved the life of the common man.

But, key departments like revenue, home, social justice, rural development, urban development, housing, public works and forests have utilised less than 50% of the funds allocated under various state and central schemes. “Every year the budget increases, but does not correspond with the state’s ability to spend. This points to long-winded procedures wherein money reaches the ground level too late,’’ said V Ranganathan, former chief secretary.