With the State is going to experience shortfall in resource realization in coming months due to impact of COVID-19 Pandemic, massive overdrive is on to bring back huge unutilized funds parked in the Bank Accounts.
While the funds released by the State Government for Program Expenditure, many Government Organizations have parked these funds in Bank Accounts.
According to an estimate more than Rs.7000 Crore of funds are parked in Bank Accounts without spending in Developmental Programs. However no official confirmation is available in this regard and officials are tightlipped over the matter.
Department of Finance is continuously approaching the Departments to get details about the parked funds in Bank Accounts so that these funds are brought back to State Treasury for utilization in COVID-19 Pandemic.
Till date State Government has mopped up more than Rs.2300 Crore out of the money parked in Bank Accounts.
Officials admit that a lot of money is still parked in Bank Accounts, though Department of Finance has categorically requested the officials to deposit back the funds in State Treasury those parked in Bank Accounts without spending, encouraging results are not coming, senior officials admit.
Major Departments having higher parking in Bank Accounts are to take proactive steps in this regards as more funds are required in COVID-19 Pandemic to meet the growing expenditure in Social Sector and Other sectors.
As the State Government mopped up over Rs.2300 Crore of money parked in Bank Accounts, resource position in September looks bright and if more funds will be retrieved from Bank Accounts, several departments, which are requiring more funds in COVID-19 Pandemic in coming months, will be able to meet their expenditure needs, officials feel.
Now major departments will have to ensure that the released funds under Program Expenditure are needed to be spent without intermediate parking in Bank Accounts.
Department of Finance has issued clear cut guidelines prohibiting parking of Government Money outside Public Accounts and these instructions are needed to be scrupulously followed by the Drawing and Disbursing Officers (DDO)s, pointed out an official.
While serious move is on to mop up funds parked in Bank Accounts without proper utilization, another additional resource mobilization effort is on for realization of huge arrears.
All the Revenue Earning Departments are having huge arrears pending for realization.
In order to realize the arrears, the State Government has advised the Revenue Earning Departments to formulate One Time Settlement (OTS) Scheme.
Earlier State Government implementing OTS Scheme had been able to realize huge arrears pending with NALCO, HAL and other Public Sector Undertaking.
Similar OTS Schemes are needed to be formulated so that huge arrears pending for realization can be collected for utilization in Pandemic Period.
Such measures will aid in creating fiscal space to meet the COVID-19 related expenditure on Public Health, Livelihood Generation, Social Security Net and Internal Security, officials say.