When the Union Government has cut down funds for various ongoing projects in Odisha, low disbursement of funds from externally-aided projects (EAP) has added to the woes only.
While EAPs play a key role in economic development of a State, Odisha has tied up with various international lending organisations for several projects. However, due to poor disbursement on EAPs, the Government is facing difficulty in implementing these projects.
The Ministry of Finance looks after these funding and the Department of Economic Affairs (DEA) reviews the progress of the EAPs on a regular basis.
Union Finance Secretary Shaktikanta Das has recently reviewed all the EAPs implemented in the country and he specifically reviewed such projects going on in Odisha, said sources.
Odisha is receiving lending support from the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Fund for Agricultural Development (IFAD), the Japan International Cooperation Agency (JICA) and the KfW Development Bank (KfW).
Recent review of DEA on Odisha revealed that out of the total commitment of Rs7798.83 crore, only 33 per cent, i.e. Rs2580.38 crore, has been disbursed and the undisbursed amount stood at Rs5568.34 crore by the end of 2014-15 fiscal.
And the cumulative undisbursed amount pending for various reasons has gone up to Rs5878.39 crore, which is a matter of great concern for DEA, said sources.
The State Government is facing tough time in implementing the projects especially when the undisbursed amount is going up and disbursement has slowed down considerably.
According to 2015-16 Budget estimate while Odisha was supposed to receive EAP funding of Rs1,169 crore, only Rs351 crore has been disbursed by now.
Overall disbursement rate for the current fiscal against outstanding undisbursed balance as on April 1, 2015 is as low as only 6.3 per cent, said sources.
Senior officials in the State Finance Department said slowdown in the Central funding and EAP disbursement during 2014-15 and 2015-16 has caused difficulties in implementation of developmental projects.