Parliamentary panel flags under-utilization of MHA's funds for police forces, recommends creating monitoring mechanism

New Delhi [India], March 14 : Disappointed over the "persistent under-utilization of funds" allocated by the Central government under various Capital heads, especially for police forces, Department Related Parliamentary Standing Committee on Home Affairs has recommended that the Ministry should create a monitoring mechanism for optimal utilization of funds under Capital Head in ensuing years.
In its 238th report on Demands For Grant (2022-23) of MHA, the Committee notes that "up to January 31, 2022 the Ministry of Home Affairs was able to spend only 42.89 per cent of the total allocation granted under the combined Capital Head of Demand Nos. 49 and 51 in BE (Budget Expenditure) 2021-22".
The report submitted in the Rajya Sabha on Monday, the first day of the second part of the Budget Session, mentions that "the Committee is disappointed to note the persistent under-utilization of funds under Capital Head, especially under demand No. 51 (Police) for years 2020-21 and 2021-22".
This, the Committee observes, may hamper the creation of assets and negatively impact the capabilities of the Police forces.
The Committee later recommends that the Ministry should create a monitoring mechanism for optimal utilization of funds under Capital Head in the ensuing years.
The Committee notes that Rs 1,85,776.55 crores, covering all the eleven demands, has been allocated to the MHA in BE 2022-23 which is an increase of 11.54 per cent as compared to the allocation of Rs 1,66,546.94 crores made in BE 2021-22.
Under Demand No. 49 (MHA), Rs 7,620.40 crores was allocated in BE 2021-22 out of which 3132.40 crores have been spent (till January 31, 2022) which is 41.10 per cent, says the report.
Under Demand No. 51 (Police), Rs 1,05,162.11 crores was allocated in BE 2021-22, out of which Rs 89,684.57 crores has been spent (till 31st January 2022) which is 85.28 per cent, the report said.
The Committee understands that in 2020 and 2021, the COVID-19 pandemic induced restrictions slowed down the implementation of various projects of the Ministry and that it has led to the under-utilization of funds, stated the 238th report of the Committee.
"But now the situation has improved significantly and there is a possibility that the COVID-19 pandemic may become endemic soon. Therefore, the Committee, recommends that the MHA should instruct all Departments to speed up the implementation of various ongoing projects so that the funds can be optimally utilized and the projects can be completed without further delays," mentions the report.
The Committee noted that there has been an allocation of Rs 1,19,034.34 crores (without recovery) for the Police (Demand No. 51) in BE 2022-23. The allocation made for the Police (Demand No. 51) under the Revenue Head is Rs 1,08,505.79 crores and under Capital Head is Rs 10,528.55 crores in BE 2022-23.
The Committee notes the total allocation of Rs 60,786.27 crores for the Union Territories (UT) in BE 2022-23. The allocation for the Union Territories (without legislature), is Rs 22,307.04 crores and for Union Territories (with legislature), it is Rs 38,479.23 crores.
It is also observed that the allocation made under Capital Head for the Union Territories (without legislature) was 26.83 per cent of the total allocation to these UTs in BE 2021-22, which has been reduced to 25.23 per cent in BE 2022-23.
The Committee is of the view that this reduction would negatively impact the developmental requirements of these UTs and therefore, recommends that allocation under this head should be suitably increased.
It also recommends that the Ministry must review the capital requirements of these UTs and seek appropriate enhancement at the revised estimate stage to carry out developmental works in the UTs.
The Committee further recommends that the Ministry of Home Affairs may review the fund utilization status of every UT periodically to ensure the optimal utilization of funds and also to assess the changing requirement of funds for the developmental works of the UTs.
The Committee notes that the UTs without legislature have utilized approximately 66.83 per cent of the total allocation made to them in Budget Expenditure 2021-22 till January 2022.
The Committee has also expressed its disappointment to note the persistent under-utilization of funds by the UT of Ladakh, and recommended that the MHA should closely monitor the fund utilization by the UT of Ladakh in the ensuing year and take necessary corrective steps for enhanced utilization of funds.
The Committee believes that proper utilization of funds is very important, failing which, it may lead to cuts by the Finance Ministry and weaken the case for enhanced allocations in subsequent years.