February 6, 2002

'43'

    The Minister of Rural Development, Shri M. Venkaiah Naidu today said no release of funds for different Programmes would henceforth take place in the month of March. This decision is meant to resolve the problem of large Opening Balances in the month of April, since it is not feasible to execute the works when the funds are released as late as March. He was addressing a news conference here today.

    The Minister said considerable improvement had been noticed in the situation in recent weeks. He felt that increased levels of transparency and awareness alone could bring about further improvement in the system as a whole. Shri Naidu said that the States had to take sustained interest in Rural Development activities and needed to regularly interact with the DRDAs, at least on a quarterly basis, so as to ensure that the funds were spent properly and the Programmes continued to gain momentum. This would also effectively address the question of Opening Balances, ensure that the funds did not lapse and that application of 'graded cuts' was obviated.

    Shri Naidu emphasized that the Ministry has been reviewing the progress with an aim to improve the performance at the grass roots level, through efficient and timely utilization of funds. He said that it was imperative to generate public awareness on a nation wide scale in respect of various Schemes and Programmes, which, in turn, would bring about greater participation of the people at large and help in activating the elected Bodies to enhance performance levels.

    He said, as a result of a joint exercise of the Union and State Governments and UT Administrations, the process had gained momentum and it was heartening to note that for several Schemes, across several States, the Second Installment of funds had been claimed and released. Efforts are now on to expedite release of the balance funds, in accordance with the prescribed procedures, to the States and UTs and to endeavour to complete the same by 28^th February, 2002.

    The Ministry has identified the problem areas/bottlenecks being encountered, which include:

1. Lack of approved budgetary provisions in the State Budget to match Central Government Grants.
2. On account of financial difficulties, States are often not releasing their share of funds for different Programmes, not withstanding the budgetary provisions.
3. Large Opening Balances in some States.

    The Minister hoped that the States and UTs will take urgent action at their end to ensure timely releases of funds, recognizing that it is through joint efforts of the Central and State Governments, that the substantial financial allocations committed by the Government of India for Rural Development can be effectively and productively utilised for the benefit of the rural poor of the country.