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LSGIs may find the going tough
Context
Local self-government institutions (LSGIs) will find Plan implementation for 2018-19 a tough task under the new norms issued by the government on the allocation and utilisation of funds for spillover projects from 2017-18.
Local bodies would have to provide funds
- Under the new norms, the local bodies will have to provide funds for the completion of spillover projects from the budget allocation for 2018-19
- Additional funds will be available only after the allocation for 2018-19 is fully utilized.
Categories of spillover projects
The spillover projects have been classified into two
- The first category comprises new projects taken up in 2017-18 and were processed to the extent of signing agreements or where purchase orders were issued, and projects that were submitted to the treasury before March 31, 2018 and were queued for bill payment but payment was not released
- All those which do not come under the above two types are in the second category.
Deadline
- The local bodies are expected to complete their preparations of the 2018-19 annual Plan by May 31.
- The ongoing financial crunch could have prevented completion of projects.
- The exact extent of spillover projects will be known only after the local bodies complete their stock taking. Once the stock taking is over, it would be possible to gauge the actual physical achievements of the annual Plan for 2017-28.
