State expenditure set to rise: Finance dept
PATNA, June 19 -- With the roll-out of Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB-G RAM G from July 1 and the state government adopting the Single Nodal Agency - Real Time System of Integrated Quick Transfers (SNA- SPARSH) mode of digital fund transfer for all centrally sponsored schemes (CSS) in the last few months, the government's bill for matching grants for Centrally Sponsored Schemes (CSS) is set to increase by an estimated Rs.5,000 crore, officials in the state finance department said.
Sources in the state finance department said that the government has smoothly transitioned all CSS accounts to the Reserve Bank of India's (RBI) national account, following the new SNA- SPARSH (Single Nodal Agency- Real Time System of Integrated Quick Transfers) system from the previous "Just In Time" system effective April 1 this year.
"Under the SNA-SPARSH system, the state government must put the matching grants into a single nodal account for all CSS once the Centre provides its share of matching grants. The money for CSS beneficiaries will be credited directly to their accounts from the central account. This means there is now little scope for delaying the state government's share in CSS or parking funds for delayed payouts. This has brought transparency and fast generation of utilisation certificates (UCs)," said a senior finance officer familiar with the matter.
However, the transition to SNA-SPARSH is now set to increase the state's expenditure due to a tweak in the matching grants ratio for some CSS schemes like VB-G RAM G where the matching grant is now a 60:40 ratio (Centre giving 60% and state bearing 40%) unlike the system for MGNREGA, where the ratio stood at 90:10 percent on average.
Officials said that the annual bill for central/ centrally sponsored schemes running over 50 in Bihar till last fiscal year stood at around Rs.15,000 crore by way of matching grants varying from 90:10 percent and 60:40 ratio,
But now with the government adopting SNA-SPARSH model and also tweaking the matching grants for several CSS, including VB-G RAM G and a few other schemes, there is an estimation that the expenditure would rise by around Rs.5,000 crore annually. The state's expenditure on CSS as matching grants so far stands at around Rs.15,000 crore whereas it receives Rs.25,000 crore annually from the Centre.
"There are indications that the state's expenditure on matching grants is set to rise by an estimated Rs.5,000 crore from the current Rs.5,000 crore annually under CSS mainly due to the tweak in ratio for some schemes and the norm to debit matching grants in a timely manner under SNA SPARSH. This is, of course, based on how fast the central schemes are implemented in a time-bound manner," said another finance official.
He said the state would have to bear around Rs.3,000 crore more for the VB-G RAM G alone.
Union agriculture minister Shivraj Singh Chouhan on Wednesday, during his visit to Patna, reportedly said that the Centre would soon release Rs.6,600 crore to clear all backlogs of payments under MGNREGA by June 30.
Meanwhile, secretary finance Sanjay Kumar Singh could not be reached for comments despite efforts....
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