Finance Ministry stops Rs 1,500 crore funds earmarked for MHA

The Finance Ministry has not provided Rs 1,500 crore to the Home Ministry as announced in the general budget, forcing the later to tell state governments that no fresh proposal under the modernisation of police force (MPF) scheme will be entertained in this fiscal.
In a letter, the Home Ministry told all state governments that an additional allocation of Rs 1,500 crore as per budget 2014-15 announcement has not been provided under the MPF scheme at revised estimate stage.
"Therefore, additional state action plans received from various states will not be considered during the current financial year. These plans may be merged/absorbed in the state action plans 2015-16," the letter signed by Director in the Home Ministry S D Sharma said.

The reason behind the Finance Ministry's action is not immediately available.
The Centre had doubled allocation under the MPF scheme to Rs 3,000 crore in the Union Budget for 2014-15.
In August, the Home Ministry had directed state governments not to spend funds allocated under the MPF scheme for buying mobile phones for senior police officers or on construction of houses and offices for them.

It also asked the states not to purchase still and video cameras, office automation devices like desktops and laptops under the MPF scheme.
As per rules, MPF funds must be spent only on core policing functions like procuring weapons, vehicles for operations, construction of police stations and police training institutes and housing facilities for junior police officers from the level of constable to inspector.

Nearly Rs 392 crore worth of MPF funds remained unspent as on August 14, 2014.