The Punjab finance department has issued instructions to simplify the procedure for release of funds for the Plan schemes being implemented by different executing agencies. The new simplified procedure allows the departments implementing the schemes more freedom and flexibility in accessing up to 12.5 per cent of the allocated Plan funds in the first quarter of the current financial year (2010-11), without approaching the finance department.
The instructions come on the heels of directions given by Chief Minister Parkash Singh Badal and Finance Minister Manpreet Singh Badal to eliminate unnecessary administrative processes and the attendant delays .
These instructions will provide an immediate thrust to the implementation of the state’s Plan schemes for the current year.
They are limited to the existing and approved Plan schemes. For the new schemes that have been introduced , the prior approval of the planning department and the finance department would still be required. Any department which exhausts its stipulated budgetary quota of 12.5 per cent within the first quarter can approach the finance department for release of additional funds after submitting the requisite utilisation certificate. This implementation of the simplified procedure till June 30, 2010 will be reviewed and modifications will be made accordingly.
The total outlay for the current year’s Plan schemes is Rs 9,050 crore, out of which the state government is providing Rs 4,373 crore .The remaining amount will be provided through external financing and funding by statutory and corporate bodies like Punjab Infrastructure Development Board, Rural Development Fund and the two new state-owned power companies.
