Govt sitting on Rs 11, 219 crore cash

 If the finance ministry were to function like a hard-core treasury manager in a multinational corporation, it would have had about Rs 11,219 crore free cash to invest in alternative avenues in the first half of 2003-04.

 The amount, which represents the difference between the projected cash needs of nine departments and ministries where a cash management review was initiated on a pilot basis this year, is higher than the full-year net profits of ONGC, the company with the highest bottomline of over Rs 10,500 crore last financial year.

 According to preliminary figures available with the government, the gross expenditure of nine departments and ministries during April-September this year stood at Rs 33,753 crore or three-fourth of their own projected cash needs of Rs 44,972 crore.

 In the first quarter, the actual spend was Rs 16,692 crore or 79 per cent of their projected cash needs. The government then had Rs 4,476 crore free cash to invest and earn. The government, however, is neither an MNC nor does it have the flexibility to undertake such treasury operations due to the myriad needs and Parliamentary controls.

 Senior finance ministry officials point out that the cash management system introduced on a pilot basis would reap in benefits in the long term.