The Hindu : Karnataka News : Over 50 p.c. of budgeted allocation spent this year

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Friday, Jan 04, 2008
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Karnataka

Karnataka

Over 50 p.c. of budgeted allocation spent this year

Nagesh Prabhu

33 per cent of the funds allocated under the Plan expenditure utilised
State’s allocation for Central schemes had been increased by 27 per cent

BANGALORE: The President’s rule has seen a brisk utilisation of budgetary funds allocated for various development projects, a change from the usual experience of funds remaining unspent during the financial year.

Unlike in the previous years, the Government has spent more than 50 per cent of budgeted allocations made under Plan and non-Plan expenditures.

Sources in the Finance Department told The Hindu that all welfare schemes were being implemented without much publicity, and allocated funds were being released as per the requirement of each scheme.

Indeed, President’s rule has helped the State save a few crores of rupees, which would have been spent on telephone, petrol and housing allowances of ministers.

As on December 31, the Government had spent over 50 per cent of the funds in the budget under Plan and non-Plan heads. Under the Plan expenditure, Rs. 17,256.17 crore had been allocated and Rs. 33,209.44 crore had been allocated under the non-Plan head for 2007-08. The Government has spent Rs. 5,766.15 crore (33 per cent of Plan expenditure) and Rs. 17,073 crore (51 per cent of non-Plan expenditure) in the first seven months of the financial year.

The facts speak for themselves, said the source, and the former Chief Minister B.S. Yeddyurappa’s allegations that the Government had spent only 30 per cent of the budgetary allocations till December was incorrect, according to sources in the Finance Department.

The flow of funds to the State increased in the current fiscal year. Under the first year of the 11th Plan, Rs. 17,782.58 crore had been earmarked for the State, which was 10 per cent higher than the outlay in 2006-07. Under various Centrally sponsored schemes, the State had been allocated Rs. 5,913.82 crore this fiscal year against Rs. 4,643.96 crore in 2006-07, an increase of 27 per cent.

The State has maintained its commitment by earmarking substantial outlays under both revenue and capital heads for priority development expenditure. The outlays earmarked to social sector had increased to ensure better service delivery and provide impetus to equitable growth.

The allocation had been increased for all major departments such as primary education (23 per cent), health (43 per cent), public works (8.4 per cent), water resources (29.08 per cent), and social welfare (22.51 per cent).

The officials said the State had maintained a healthy growth on revenue and expenditure fronts this year. The Medium Term Fiscal Plan (MTFP) of the State assumed real growth of Gross State Domestic Product (GSDP) at 8 per cent. The GSDP had been estimated at Rs. 2,20,006 crore in the fiscal year.

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