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Funds Flow Slows Down

With Central Government facing financial crunch, release of funds to Odisha has gone down drastically and State Government is left in a worried state.

Even Centrally Sponsored Scheme (CSS) funding, which was earlier released in time is not being released by Union Government, admitted a senior official in Department of finance.

While in 2018-19, total funds release under CSS was Rs.12,342 Crore, where as till date Odisha has received only Rs.4824 Crore after completion of six months in Fiscal 2019-20.

Serious financial crisis looms large in the State as CSS Funding has been scaled down and release of funds is almost stalled, officials admit.

Chief Resident Commissioner (CRC) Office is pursuing release of funds under CSS regularly with various Ministries, but insiders admit that Union Government is also facing shortage of resources.

At least 40 Central Schemes are being implemented in the State and low release of funds for the Schemes, is hampering implementation of the Programs, admit officials.
 
While officials in the Ministries are raising issues of Utilization Certificate(UC), CRC Office is regularly updating with UCs and trying hard on a Mission Mode for release of funds by various Ministries.

Chief Minister Naveen Patnaik and Chief Secretary Asit Tripathy recently while reviewing sanction of funds and release of the sanctioned amount was discussed at length.

Officials of the State Government were asked to pursue the matter with the senior officials of the Ministries on a Mission Mode.
Major Flagship Programs like MGNREGS, PMGSY, MDM, SSA, NHM RKVY are facing serious funds crunch.

Take for example, on MGNREGS count by 30 September, Odisha was supposed to get Rs.2018 Crore, however Ministry of Rural Development has released Rs.1096 Crore. Rs.922 Crore towards First Tranche is awaited.
 
Similarly prevailing unskilled wage rate in Odisha is Rs.280 Per Day, however in MGNREGS unskilled wage rate is Rs.188 Per day.
People in rural areas are not agreeing to join MGNREGS with less Rs.92 Per day.
 
Repeated request has gone unheeded by Government of India and MGNREGS Program is facing real hurdle in implementation.

Even recommendation of 14th Finance Commission for release of funds under SDRF/NDRF is not adhered to and full amount is not released to the State.
 
FFC had recommended for release of Rs.818 Crore in 2019-20 from SDRF/NDRF, however Rs.552 Crore has been released leaving Rs.266 Crore shortfall.
 
Officials say short release is due to mid way change in ratio of State and Centre share is the cause.
 
Earlier Centre: State Share was 90:10 as per recommendation of FFC and it has been changed mid way to 75:25 by the Union Government.
 
Hence funding has been slashed down though Odisha continues face continuous natural calamities.
 
However for Super Storm FANI, Union Government has released Rs.3114.46 Crore under NDRF Funding in two phases-first one Rs.788.8750 Crore and secondly Rs.2325.5850 Crore.
 
While State Government is having warmest of relationship with the NDA Government, situation is just not improving, but aggravating day by day, admits the senior official.
 
 
 


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