Enthused by the success of the Cash Management System (CMS) introduced in ten departments of the state government in 2010-11, the state finance department has now decided to extend the system to five more departments in the current financial year.
"The Cash Management System will be extended to five more departments- industries, energy, fisheries & animal resources department, SC & ST Development and forest in this fiscal”, a senior official of the state finance department told Business Standard.
The departments where the system was introduced last fiscal are School & Mass Education, Rural Development, Housing & Urban Development, Health & Family Welfare, Panchayati Raj, Water Resources, Agriculture, Women & Child Development, Higher Education and Works.
The introduction of Cash Management System has worked wonders for ten departments of the state government.
The expenditure levels of these departments have shown a significant in the April-December period of the current financial year compared to the same period of 2009-10.
The sharpest rise in expenditure level was clocked by the department of women & child development whose expenditure stood in the first three quarters of 2010-11 stood at Rs 1,338.41 crore, which is a surge of 110.2 per cent over Rs 636.71 crore recorded in the same period of the last fiscal.
Similarly, the expenditure of water resources department went up from Rs 920.22 crore to Rs 1276.65 crore, an increase of 38.73 per cent.
The department of School & Mass Education has achieved an expenditure of Rs 3,226.76 crore which is a growth of 25.13 per cent over Rs 2,578.71 crore recorded by the same department in the corresponding period of last fiscal.
Similarly, the expenditure of rural development department rose moved up from Rs 530.15 crore to Rs 706.02 crore, registering an increase of 33.17 per cent.
The department of housing & urban development recorded a marginal rise in expenditure level from Rs 540.54 crore to Rs 555.43 crore.
For health & family welfare department, the expenditure rose from Rs 671.07 crore to Rs 836.12 crore, marking a growth of 24.59 per cent.
The system stipulated that the departments had to spend 60 per cent of the expenditure in the April-December period of any fiscal while the balance 40 per cent was to be spent in the last quarter including an expenditure limit of up to 15 per cent in the last month.
The system was introduced to avoid rush in expenditure, especially in the last quarter of a fiscal.
