Budget preparations begin in U’khand for new Financial Year
By Arun Pratap Singh
Dehradun, 10 Jan: Preparations are underway for the next budget in Uttarakhand these days even as there are many crucial departments that have managed to spend only a fraction of their annual budget for the outgoing Financial Year 2024-25. The Finance Department has claimed that it is closely examining the performance of budget expenditure by all the departments.
Generally speaking, expenditure incurred on new development projects, particularly related to infrastructure development and capital expenditure is considered crucial for any state in making progress. Revenue expenditure or routine expenditure on the other hand is what the state government has to incur to run the state and pay salaries, wages and pensions and on regular social welfare schemes. It is generally not considered to be productive expenditure. The major parameter of development in any state is the budget expenditure made by that state in capital development i.e., infrastructure development, which is the norm.
From this perspective, it may be recalled that the Dhami Government had presented a budget to the tune of Rs 89,230 crore for the year 2024-25, 15.27 per cent more than last year. However, in contrast to the total budget amount, in all, 52 departments have spent only an amount of Rs 6,217 crores in new development works as on 31 December even as the financial year is about to end in another two months. It may also be pointed out here that, in the Annual Budget for the Financial Year 2024-25, the total capital expenditure proposed to be made was to the tune of Rs 15,854 crores against which the total capital expenditure has been only Rs 6,217 crores which is only about 41 percent of the budget provision. In theory, the government holds regular meetings at the top level to review budget utilisation and progress of various development projects and the Finance Department too also emphasises greater capital expenditure.
In Uttarakhand, the Finance Department is constantly asking the departments regarding budget expenditure on infrastructure development. The total amount of capital expenditure made so far in the current financial year remains almost the same as in the previous year (FY 2023-24).
Some of the crucial departments which undertake development projects and with budgets of more than Rs 500 crores, each, have lagged behind in budget utilisation regarding capital expenditure. It may be recalled that the departments with major budget allocations in the state include Rural Development Department with a budget of Rs 1,632 Crores; Public Works Department with a budget of Rs 1,440 Crores; Irrigation Department with a budget of Rs 1,380 Crores; Energy Department with a budget allocation of Rs 1,281 Crores; Urban Development with a budget of Rs 774 Crores; Food Supply Department with a budget of Rs 613 Crores; Disaster Management Department with a budget of Rs 596 Crores and Peyjal Department with a budget allocation of Rs 572 Crores.
As against the allocations, the Disaster Management Department has proved to be the worst in terms of budget spending, managing to spend only 29 percent of the budget. The Tourism Department has also been able to spend a small fraction of its budget though tourism sector is touted to be a major source of livelihood in the state. The budget utilisation by the Tourism Department has been only 30 percent of the allocation so far. The Forest Department has a budget allocation of Rs 129 crores, it managed to utilise only 30 percent. The Energy Department which mainly comprises three power corporations and the renewable energy department has been able to utilise only 40 percent of the total amount of Rs 1241 crores allocated for the outgoing Financial Year. Despite the rising number of the needy citizens, the Social Welfare Department has barely managed to spend only 8.25 percent of the total budget amount of Rs 152 crores.
On the other hand, the Food and Civil Supplies Department has spent 98.51 percent of the proposed budget of Rs 613 crores. The Sports Department has also utilised 92.40 percent of the proposed budget of Rs 100 crores. The Urban Development Department has been among the better performing departments managing to utilised a moderate 64.48 percent of its allocated budget of Rs 774 crores. The Agriculture Department has spent 64.12 percent of the budget provision of Rs 68 crores. The Public Works Department is also a moderate performer with 62.84 percent utilisation of out its total budget of Rs 1,440 crores.
Commenting on the budget preparations, Finance Secretary Dilip Javalkar has noted budget proposals are being sought from all departments and that the review of the proposals has also begun. He reminded that the annual budget can only be finalised after the Union Budget which will be released in February on the basis of the allocations to the state from the Centre.
Finance Minister Premchand Aggarwal observed that all the departments are being reviewed regarding budget expenditure.
