Parliament building in New Delhi.
Credit: Reuters Photo
New Delhi: Amid instances of non-utilisation of funds to create infrastructure for the subordinate judiciary in the northeastern states, a parliamentary panel has proposed a system of penalties and incentives, saying it could create a sense of urgency among the states for timely and effective use of the funds.
In its report on judicial infrastructure in the northeastern states presented in Parliament last week, the department-related Standing Committee on Law and Personnel said the revised procedural guidelines for the release of centrally-sponsored scheme funds under the new Public Financial Management System (PFMS) have apparently slowed down the pace of release of funds.
"Due to stringent conditions attached for release of funds, most of the states are finding it difficult to get their quota of funds despite having huge requirements for funds for their projects both ongoing and new," it observed.
Citing data from the Department of Justice, it said three out of eight northeastern states did not get any funds during 2022-23 due to such norms.
It recommended the department approach the Finance Ministry to get the guidelines on the release of funds under the Centrally Sponsored Schemes (CSS) relaxed, wherever the states are facing genuine difficulties in the implementation of such guidelines.
The panel observed that it understands that there is an issue of non-utilisation of the funds released earlier in the north-eastern states which hinders the release of further instalments in the scheme for the creation of infrastructure.
"The Committee further emphasises that a system of penalties or incentives may be introduced in the scheme so that states may get motivated to improve their financial management practices and ensure that funds are used fully and effectively.
"This could also create a sense of urgency among the States for timely utilisation of funds," the report said.