Uttar Pradesh: Departments may put government in financial tight spot | lucknow | Hindustan Times
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Uttar Pradesh: Departments may put government in financial tight spot

Departments are drawing funds in bulk and disbursing them to construction or work executing agencies, not withstanding the directives given to them to the contrary early this year. 

lucknow Updated: Nov 21, 2017 15:36 IST
Umesh Raghuvanshi
Umesh Raghuvanshi
Hindustan Times, Lucknow
Financial tight spot,Uttar Pradesh government,Government order
An official memorandum issued by the state finance department on August 3, 2017 had asked UP government departments to release only such amount that may be used by their respective agency in two months. 

Callous attitude of authorities in many departments may put the Uttar Pradesh government in a tight spot on financial front in coming days.

Many of its departments are drawing funds in bulk and disbursing them to construction or work executing agencies, not withstanding the directives given to them to the contrary early this year.

An official memorandum issued by the state finance department on August 3, 2017 had asked UP government departments to release only such amount that may be used by their respective agency in two months.

As release of more than permissible amount of funds is having an adverse impact on the state’s fiscal condition, fresh directives have been given to additional chief secretaries/principal secretaries and secretaries to ensure that the departments did not exceed the official brief.

“Many departments have released financial sanctions for centrally sponsored schemes to construction agencies without getting the central share... All the amount has been drawn from treasuries and transferred to construction agencies against provision of providing funds required only for use in next two month. This is having an adverse impact on state’s financial condition,” says a government order (GO) issued by principal secretary finance Sanjiv Mitttal here on Monday.

The GO assumes significance in the backdrop of state government’s decision to implement the farmer loan waiver scheme from within its own resources. As a large chunk of funds of loan waiver scheme have been transferred to banks in the past few months, the state government had deferred payment of arrears of seventh pay commission to state government employees from October to December 2017.

The GO said more funds for next two months may be released once the construction/work executing agency provided certificate for use of 80 percent of amount released. The GO asks departments to release funds of centrally sponsored schemes in proportion to the central share received from the union government.

Meanwhile, state government is exploring options of convening the winter session of state legislature next month. Sources said a decision to convene the session is likely to be taken after the civic elections get over.

First Published: Nov 21, 2017 15:36 IST