Finance Dept releases 50% budget allocation for FY 2018-19

Finance Dept releases 50% budget allocation for FY 2018-19
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JAMMU: Finance Department on Friday said that it has released 50 percent of budget allocation for the new financial year, nearly two months before hand of previous financial years.
“We have today released to the Administrative Departments half of the total budgetary allocation of Rs 95666.97 crore for the fiscal 2018-19 through BEAMS (Budget Estimation, Allocation and Monitoring System) and they will have to now pass it on to the field Departments within four weeks,” finance minister Haseeb Drabu was quoted in a government released hand out.
Drabu in his recently released budget had made a commitment to release the budget in advance to initiate development process. In the earlier arrangements, the government would allocate the funds in April, and release them in June. This calendar would affect the overall use of the funds for the developments in the state as the departments could less time to spend.
However due to the introduction of BEAMS, the departments can allocate funds to their executing agencies through the online system which will regularly check budget availability and control monthly cash flows.
“Earlier, the budgetary allocation used to be released by the finance department with the beginning of the new financial year in April while the administrative departments used to pass it on to the line departments in July-August resulting in developmental deficit because of limited working season available in various parts of the State,” he said.
He said the administrative departments shall, in turn, ensure release of funds to the subordinate offices within four weeks of their receipt, failing which these funds shall be deemed to have been transferred to the intended DDOs on the dates they ought to have been released by the controlling officers.
“Planning Development and Monitoring Department shall ensure that all plan allocations to be made in the next fiscal bear proper classification, indicating, name of the work/scheme against detailed Head-115 Works,” he said.
He also said that no payments would be made by any Treasury April 1 2018, if the releases for the same have not been made or received BEAMS.
Drabu on January 11 this year, the Finance Department had allocated Rs 95666.97 crore budget for the financial year 2018-19.
He said the procurement plans of the departments would be limited by an outermost cap of 60 days, starting April1 and disciplinary action will follow if there were spill-over in timelines. For the effective use of new financial calendars, the government passed an appropriation bill during the budget.