The Jharkhand Assembly for the first time in its 14 years of history approved Demand for Grants to mollify excess of expenditure done during nine financial years staring from 2002. The amount is over Rs8,120.11 crore, which was spent without being allocated in the budgetary provisions.
Admitting the practice as example of gross financial misconduct, the Government nevertheless defended the spending. "The expenditure exceeded the allocated fund but it is not unconstitutional. The spending has been explained as well and everything is accounted. There is provision under Article 205 (1) and the expenditure has to be passed by the House. Every excessive expenditure is not a fraudulent expenditure," said Parliamentary Affairs Minister Saryu Roy responding to the grievances of the members.
leader of Opposition Hemant Soren and JVM's Pradeep Yadav earlier criticised the practice and termed the demand as stark example of gross financial mismanagement. "It is right that there are constitutional provisions for such expenses but it is happening year after year. We sought that the practice should be avoided as much as possible," said Yadav.
Roy termed the spending 'circumstantial' in nature and mentioned that most of the money during the period was 'charged' and not 'voted' along with interest rate deducted by the RBI in advance. "The Government admits that the process of budget formation should be more disciplined and we will do that in future. But we are in a federal structure and some expenditures of that kind are bound to happen," added the Minister.
The CAG in its report had indicated towards spending in excess of Rs81,201,162,887 during 2002-03, 2003-04, 2004-05, 2005-06, 2005-07, 2007-08, 2008-09, 2009-10 and 2010-11 and underlined the need to regularise the expenditure which was not granted by the Assembly. The regularisation was pending over the years and it was only this Government who took the pain to bring a Bill for the purpose in the House. The Public Account Committee while looking into the CAG reports had stressed over the need to pass a Bill to adjust the unregulated expenditure.
The members also raised the issue of 'March loot' at the end of the current financial year and criticised the Government for depositing huge sum in Pl Accounts to save it from being lapsed. "The withdrawals from treasury have taken place as per the provisions and acts. Money deposited in the Pl accounts cannot be withdrawn without proper authority. If is safe and would be audited by the AG. It is under the lens of the Government machinery. I agree that it should not happen but this has been done earlier as well," said Roy.
