Dimapur, Feb. 23: Finance Department has strongly reacted to the news report regarding allegations of more than Rs 5000 crores released by the Central government and parked in the State coffers.
While acknowledging that State government had responded to the RTI application and information sought by ACAUT, Additional Chief Secretary & Finance Commissioner, Temjen Toy, today however stated that the information furnished by the government was misunderstood, leading to the wrong conclusion that the government has huge funds in its coffers owing to non-utilisation of funds released by the Centre.
For the information of all concerned, he clarified that the Central government releases funds from time to time as per the norms recommended by the Finance Commission. He said the State government takes into account all the funds receivable from all sources during a particular financial year and works out the estimates of receipts for the purpose of the State budget. According to him the main sources of receipts of the State government are the Post Devolution Revenue Gap Grant, State’s share of central taxes, all other grants available under the award of the Finance Commission, State’s own tax & non-tax revenue, and the borrowings of the State government as permissible within the norms prescribed by the Finance Commission.
Thus, he said the Post Devolution Revenue Deficit Grant and Grant for Disaster Relief as mentioned in the news item under reference have been incorporated in the State budget for the year 2015-16 and 2016-17.
Similarly, he said the grants indicated for the year 2017-18 will also be incorporated in the Budget for the year 2017-18.
While stating that central grant against disaster relief is utilised specifically for disaster relief, he said the post devolution revenue deficit grant and the State’s share of central taxes, etc. are not tied to any specific programme/scheme but goes to finance the State’s expenditure as reflected in the budget of the respective year.
Since the above mentioned receipts have been/are being utilised to meet the expenditure as reflected in the budget of the respective year, he said there cannot be any question of any part of these central grants remaining unutilised.
On the problems relating to delay in payment of salaries to SSA, RMSA, Hindi teachers etc., he said the matter is being tackled as best as possible. However, he sought understanding saying such programmes fall under Centrally Sponsored Schemes adding releases under these schemes are directly linked to the corresponding specific releases from the Centre. He made it clear that there is no logical link of these issues to the Post Devolution Revenue Gap Grant etc, of which no undistributed ‘reserve’ is kept anywhere. He further hoped that the above clarification will put to rest any doubts on management of the State’s finances.
