Bihar opens nodal bank accounts for central schemes in line with Delhi’s directive

Published on Oct 14, 2022 09:25 PM IST

The new system, applicable from the current fiscal, has put the state governments under a close watch because of the stricter norms.

In a bid to improve monitoring of funds, the union finance ministry had directed all states to open nodal accounts for each central scheme and asked them to transfer funds under central schemes allocated last year to the new accounts at the earliest. (REUTERS)
In a bid to improve monitoring of funds, the union finance ministry had directed all states to open nodal accounts for each central scheme and asked them to transfer funds under central schemes allocated last year to the new accounts at the earliest. (REUTERS)
By, Patna

In line with the union finance ministry’s directives issued earlier this year, the Bihar government has opened nodal accounts for each of the nearly 60 central schemes in scheduled commercial banks, officials familiar with the matter said.

In a bid to improve monitoring of funds, the union finance ministry had directed all states to open nodal accounts for each central scheme and asked them to transfer funds under central schemes allocated last year to the new accounts at the earliest.

“Almost all departments have opened nodal accounts for centrally sponsored schemes in scheduled commercial banks. It will help in monitoring of funds , expenses and faster release of further instalments of central allocations,” said an official of the state’s finance department.

The new system, applicable from the current fiscal, has put the state governments under a close watch because of the stricter norms.

Like, under the new provisions, the state government has put its share of central funds within 40 days of credit of central funds in the respective nodal accounts. Under the new provisions, the state government has to credit the central fund into the designated nodal account for the scheme within 21 days after it’s credited in state consolidated fund by the central government.

That apart, the state government can no longer park funds earmarked under central schemes into personal ledger (PL) accounts .

“Now, diversion of funds would be difficult as all expenses under central schemes will be monitored live by the union finance ministry and the departments concerned. Besides, state’s share has to be given on time for centrally sponsored scheme. Otherwise, it could lead to delay in release of second instalments,” said another official of the finance department.

After the formation of grand alliance government on August 10 in Bihar, the ruling JD(U) has accused centre of not giving enough central assistance under Samagra Skikha Abhiyan (SSA) and other central schemes whereas the opposition BJP had rubbished the charge.

Bihar has so far got around 41,000 crore in the last seven months in central devolutions as state’s share in central taxes against the annual target of 91,180 crore.

Additional chief secretary (finance) S Siddharth wan’t available for comment.

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  • ABOUT THE AUTHOR

    A journalist for 21 years, Anirban covers RJD, legislature and government beats. Has extensive experience in covering elections and writes regularly on finance, land reforms, registration, excise and socio-economic issues.

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