Jammu,March 17 (Scoop News) – J & K Finance Minister, Abdul Rahim Rather on Wedenesday in Legeslative Assembly described the indiscretion of diverting funds from one demand for Grant to another, after such Demands were voted by the Legislators as violative of the constitutional provisions and the Budget Manual.
In his 65-minute reply to the general discussions on the budget, presented by him in the Legislative Assembly on March 12 Rahim Rather Strongly defending the concern of the Chief Minister expressed earlier in the House over the mismanagement of funds before the present Government took over, Finance Minister, Abdul Rahim Rather today described as unconstitutional any diversion of funds approved by the State Legislature.
“Can any Finance Minister afford to do this?” he asked. He referred to the admissions made by Muzaffar Ahmad Beig during his speech regarding such diversions as dishonor to the Constitution of Jammu and
Rather elaborated by saying that prescribed re-appropriation of funds has been expressly under some situations mentioned in para 15.5 of the Budget Manual. As such, diversion of allocations from the Calamity Relief Fund to any other scheme resorted by the former Finance Ministers, as admitted by Beig himself was not warranted. When the present Government sanctioned relief of Rs 70 crore to the persons hit by the drought, it found that out of the allocated Rs 362 crore into the fund only Rs 80 crore had been spent on bonafide purposes and rest of the amount had been diverted, obviously to meet non-plan expenditure for in excess of the voted amount. Similarly, Rs 691 crore out of Prime Minister’s Reconstruction Programme, were diverted for non-developmental purpose.
Rather stated further that huge spending when made on procurement of power without making proper budgetary and financial arrangements to pay for the same. “This is certainly not a sign of good financial management”, he observed.
He also made a mention of under estimating of concealing the actual fiscal deficit by the then Finance Ministers. He cited the actual figures of Financial Accounts prepared by CAG showing that against an estimated deficit of Rs 1569 crore in 2005-06, the Comptroller and Auditor General calculated the actual figures as Rs 2,644 crore. The actual figures of non-plan revenue expenditure were far in excess of the voted accounts.
Rather also dwelt in detail upon the growth of non-plan expenditure and stated that this was just Rs 6283 crore till 2002-03, 53 years after
Referring to the observation of the former Deputy Chief Minister, Muzaffar Hussain Beig, about diverting sum of about Rs 300 crore for meeting the pensionary needs, on account of under provision, Rather stated, that the Government should have sought vote of the House after disclosing source of funding of this expenditure.
Regarding release of arrears on account of the 6th Pay Commission, the Finance Minister recalled the meeting held with the employees’ unions on February 18, 2009 wherein it had been decided to approve revised pay scales to the employees with effect from 1 July 2009. He said that the Government had made a commitment to pay the arrears, as and when the resources would become available. However, he said, the Cabinet Sub Committee shall be meeting the employees’ leaders with an open mind on 19th of March to resolve the issue. In this context, he quoted the relevant text from the 13th Finance Commission Report which makes it amply clear that no financial assistance has been recommended for payment of arrears, amounting to Rs 4200 crore in our case.
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