Keeping with the announcement made by Jammu and Kashmir Finance Minister Haseeb Drabu in his budget speech, the state's Finance Department today released 50 per cent of the Rs 95,666.97 crore budget allocation for 2018-19.
We have today released to the Administrative Departments half of the total budgetary allocation of Rs 95,666.97 crore for the fiscal 2018-19 through BEAMS (Budget Estimation, Allocation and Monitoring System) and they will have to now pass it on to the field Departments within four weeks, Drabu said here today.
Principal Secretary Finance Navin Kumar Choudhary was also present on the occasion.
The new and efficient online system of resource allocation -- BEAMS was launched by the Finance Department last year.
Drabu said the early release of funds would facilitate the government departments to plan and set into motion various schemes.
Earlier, the budgetary allocation used to be released by the Finance Department with the beginning of the new financial year in April while the Administrative Departments used to pass it on to the line departments in July-August resulting in developmental deficit because of limited working season available in various parts of the state, he said.
The finance minister said with the introduction of BEAMS, once the budget is released, the departments can allocate funds to their executing agencies through the online system. Thereafter, all the expenditure will not only be regularly checked for budget availability but it will also help control monthly cash flows against pre-determined developmental targets.
He said the substantial increase in the capex budget has massively shifted the total percentage of expenditure towards development front.
In 2011-12, the rate of investment on public expenditure was 6.80 percent of the State Domestic Product (SDP) which has now crossed 10.02 per cent, he said.
For the first time in the state, the finance minister has factored in wide-ranging Expenditure Reforms in the Appropriation Bill-2018, making the government legally bound to ensure time-bound public expenditure, avoid delays in execution of development works and reduce pilferages.
As per the new law, the Finance and the Planning, Development and Monitoring Departments have to release both Revenue and Capital budget to all the administrative departmentswithin two weeksof the passage of the Appropriation Bill.
The Appropriation Bill for 2018-19 was passed by the Upper House of the State Legislature on February 5.
The finance minister said no payments shall be made from treasury fromApril 1, 2018, under any expenditure head, if the releases for the same have not been made and further received by the spending and bill passing officers via BEAMS.
Treasury Officers shall be personally liable for making payments on the funds released and received bypassing the BEAMS application, he said.
Drabu further said that the Planning, Development and Monitoring Department shall mandatorily upload on its website the department-wise 'Name of the Schemes, Works, Projects', forming part of the capex budget for the fiscal 2018-19, along with the respective allocations.
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