Bengal reforms budget document, managing central scheme funds
Times of India | 10 January 2025
12 Kolkata: Bengal's budget document will exclude mentions of central share in centrally sponsored schemes (CSS). Additional chief secretary (finance) Prabhat Kumar Mishra, by a notification dated Jan 6, has clarified that separate headings for central and state shares in CSS are no longer necessary.
During an administrative meeting at Nabanna last Thursday, CM Mamata Banerjee raised concerns about inadequate reporting of idle departmental funds and fixed deposits (FDs) maintained by various state agencies. She instructed finance department officials to compile a report detailing FD amounts and unused funds for development initiatives.
Following the CM's directives, the finance department issued new guidelines on Monday to enhance the management of central funds of CSS. Earlier, funds remained unused without proper tracking in the public finance management system as departments often failed to provide utilization certificates.
An official pointed out how, for this, "Centre would often say that central funds were misused and the state was not giving proper accounts of the same".
Mishra's directive outlined procedures for implementing "just-in-time" fund releases under CSS to maintain liquidity in the consolidated funds of both Centre and state. The system will ensure direct payments to beneficiaries or vendors without intermediate bank transfers.
The directive also stated that state govt retained the option to provide additional top-ups beyond standard central and state shares.
The new system has implemented simultaneous fund releases, replacing the previous method where central shares preceded state contributions by a fortnight.
Central funds of CSS will now be released only after state shares are deposited in the cyber treasury (e-treasury), followed by central ministry approval for state-level schemes.
"This will lead to better monitoring and will plug misuse of funds so that they can be used in development projects in a more efficient manner," the official added.