Centre allots Rs 7,600 crore to Bengal for infrastructure development Centre allots Rs 7,600 crore to Bengal for infrastructure development

 Scurry by state to spend funds allocated for infrastructure development

The department of expenditure has already released 50 per cent of the amount under the special assistance for Bengal

Pranesh Sarkar   |  TT  |  Calcutta   |  21.01.23 : The Centre has allotted Rs 7,668 crore to Bengal for infrastructure development in the ongoing fiscal —  a relief for the state government which find it tough to fund projects which need capital investments because of its commitment to run welfare schemes with the available financial resources. 

The Union government allocated Rs 6,018 crore under the special assistance for capital investment, while Rs 1,650 crore has already reached the state from the 15th finance commission. 

“The special assistance for capital investment is an interest-free loan from the department of expenditure that functions under the Union finance ministry.... The loan has to be repaid over a period of 50 years. A major portion of the funds from the 15th finance commission is untied and rural bodies can spend amounts for infrastructure development,” said a source.  

The allocations come amid accusations from the ruling party in Bengal that the Narendra Modi government in Delhi is depriving the state of funds under the 100-day rural employment guarantee scheme, the Pradhan Mantri Awas Yojana and various other projects. 

“The handsome allotment by Delhi for the development of infrastructure is certainly going to help the state immensely as funds flow for the purpose dried up in Bengal in the past few months,” said a senior state government official.

Although the Mamata Banerjee government is alleging that the Centre is discriminating against Bengal, a source in Delhi said the share of Bengal in the corpus of Rs 80,000 crore — which is divided among all states under the special assistance for capital investment in the 2022-23 financial year — is reasonably high. 

“Only Uttar Pradesh (Rs 14,351 crore) and Bihar (Rs 8,046 crore) are getting more allotment under the head,” the source said. 

“We cannot say that Bengal was denied its dues at least when we talk about this particular allotment. Given that UP is a much bigger state and Bihar needs more funds to develop infrastructure, the allotment to Bengal can be considered to be a good one,” the source added.

The department of expenditure has already released 50 per cent of the amount under the special assistance for Bengal and the remaining portion will be sent as soon as the state submits utilisation certificates.   

The Centre didn’t hold back the 15th finance commission funds though the state could not spend about Rs 1,800 crore received over the past few years.

“Despite a handsome amount lying unspent, the Centre has sent Rs 1,700 crore from the 15th finance commission. It is now a challenge for the state to utilise the amount before the end of the current fiscal on March 31,” said a bureaucrat.

The chief minister has already asked district administrations to develop rural roads with a major portion of the 15th finance commission funds in the absence of grants under the Pradhan Mantri Gram Sadak Yojana.

Considering the importance of the funds under the special assistance for capital investment and the need to utilise the amount on time, the state finance department has asked the public works department to submit a request for the release of Rs 1,236 crore immediately so that utilisation certificates can be produced before February 10 and the remaining 50 per cent of the allocation could be claimed.

“If we can submit the utilisation certificates by the first half of February, we can claim the remaining 50 per cent allotment in this financial year.It is a challenge for us to use the funds on time and the PWD has to respond to it with utmost sincerity,” said a senior bureaucrat.

The allocations from the Centre have come at an opportune moment, said a source, referring to worries at Nabanna on how to fund several important projects.

The state is facing a shortage of funds to execute projects like six-lane elevator to connect Belghoria Expressway and Kalyani Expressway and the widening of Bongaon-Chakdah road (SH1), Dupguri-Falakata road and Santoshpur-Duttapukur road. 

While Nabanna is leaving no stone unturned for the use of the funds without any delay, a section of bureaucrats is worried over the proper utilisation of funds by the PWD on time. 

“The department has not completed any major project on time. Be it Dhana Dhaney (a 2200-seat auditorium in Alipore) or any road project, none could be completed on time. Hence, there are worries,” said a senior official.

Another official has pointed out that files pending in the PWD have become a common feature nowadays, delaying projects.

“For example, a proposal to improve Kurseong Pankhabari Road keeping the forthcoming G-20 summit in mind as foreign delegates are scheduled to Visit Darjeeling has been pending with the department since October.... If this approach continues, utilising funds on time is not possible,” the official added.