Telangana govt to streamline department for fiscal discipline

Hyderabad: Following reports that funds meant for the development and welfare were not being utilised optimally, Telangana state government is ready to put into force a strict financial discipline among all departments from the new financial year 2018-19 beginning April 1. State Finance department will monitor directly the expenditure incurred from the funds earmarked to every department and government institutions, including the universities.

The government had received series of complaints that many departments were not utilising the funds properly. In many cases, the funds released to the departments were used according to the whims and fancies of heads of the departments. After release of the funds, the departments transferred the money to their own accounts and parked the money for months. In some cases, the funds meant for the schemes were diverted for other purposes.

For instance, many departments were giving priority to the release of the funds for petrol and diesels allowances, recreation and logistic support. The allocations made for the schemes were not being released regularly. There was also no clarity on the number of employees in each department which includes permanent, contract, outsourcing and daily wage.

It has come to the government’s notice that the university authorities were misusing funds. The government was releasing funds to the universities as grant-in-aid every year. But the authorities were utilising them for different purposes. For instance, most of the funds are being utilised for the payment of salaries to outsourcing and contract staff. The very purpose of the funds earmarked to the universities for the development of infrastructure and improving the educational standards are not fulfilled.

As a first step, Finance Secretary Ramakrishna Rao instructed all the departments to furnish the number of employees (cadre wise) who are joining the government service during the financial year 2018-19 under the newly-sanctioned or vacant posts, including the details of the appointments made on contract or outsourcing through an agency and also the information regarding number of daily wage employees, full time/ part time contingent employees, anganwadi workers, home guards and village revenue assistants (VRA) engaged by the respective departments. At present, the responsibility of the Finance department was the release of the funds to the department.

From April onwards, the Finance department will seek detailed data with regard to the utilisation of funds every quarter and analyse the expenditure pattern in every department and plug the loopholes. The departments will also have to furnish the details of the expenditures every three months. Based on the performance of the departments in maintaining financial discipline, the government will release funds.