From Our Bureau
NEW DELHI: The Centre is contemplating to eliminate the role of the state governments in handling the funds allotted under the central and central-state programmes in the coming financial year from April 1, claiming it will cut administrative bottlenecks in the disbursement of the funds.
The finance ministry sources claim often the disbursal of the funds is delayed and the state governments park them at various levels to use them for the state projects. The schemes and programmes with more than Rs 500 crore will be thus not routed through the state governments.
The idea is to adopt a new Treasury Single Account (TSA) model, so that funds for the schemes are released directly to beneficiaries and the vendors. The funds will be parked in the Reserve Bank of India (RBI).
The state governments will be roped in for the programmes and schemes of less than Rs 500 crore in a year to open the central nodal account in a scheduled commercial bank for release of the funds “just in time” but not more than 25% of the amount earmarked and the additional funds will be released only on the certificate of utilisation of 75% of the funds released earlier.
