Central schemes hit as Delhi blocks funds to Telangana

​Hyderabad:  The Union government has reportedly blocked the release of funds to Telangana under the Centrally-sponsored schemes on the ground that the state had failed to furnish complete details of the utilisation of funds allocated to it earlier. 

Although the state government claimed that it had followed all the norms prescribed by the Centre on spending of funds released for various schemes, the Centre has sought more information with regard to the funds utilisation. It is learnt that the Centre also questioned the state for diverting the funds meant for one scheme to others. 

The release of funds under the core schemes like the National Health Mission, Pradhan Mantri Gram Sadak Yojana, National Education Mission and  infrastructure and road development in LWE (Left Wing Extremists) districts were also pending with the Centre as the respective departments failed to submit the utilization certificates in time for the funds released thus far. 

According to sources, the standard procedures say that the respective departments should forward new proposals once in every three months and update the Centre about the requirement of funds. Besides, the departments should clarify the doubts raised by the Union government from time to time for the release of funds and submit utilisation certificates.

The dues under the rural employment scheme were yet to be released as the state Rural development department did not submit utilisation certificate up to date every month. As a result, the release of funds to the tune of Rs 500 crore are still pending with the Centre.  The Telangana state has got only Rs 1700 crore as against Rs 2,200 crore till December end.

Against this background, State Finance Secretary K Ramkishan Rao rushed to Delhi to pursue the issue of release of funds as the financial year 2017-18 had already ended.  He will meet several officials of various departments, including the Department of Expenditure which monitors the utilisation of funds earmarked to the states regularly.  He will clarify the doubts on behalf of all state departments raised by the Centre and get the clearance for the release of funds, sources said.