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India sits on unutilized $15.6 Billion
By
SiliconIndia,Tuesday, 24 February 2009, 00:00 Hrs
New Delhi: A whopping Rs 78,000 crore ($15.6 Billion) foreign assistance is remaining unutilized in India and the country is paying commitment charges to the World Bank and Asian Development Bank for not using the sanctioned amount.
"Since the external assistance is precious and commitment charges are being paid by the government, initiatives need to be taken to address the issues being faced by sectors for not utilizing the available funds. As on March 31, 2008, unutilized committed external assistance was of the order of Rs 78,037 crore," the Comptroller and Auditor General (CAG) said in its report, which was tabled in Parliament recently.
During 2007-08, the government paid a commitment charge of Rs 124.54 crore for undrawn assistance, mainly to the World Bank and Asian Development Bank.
The commitment charges, which are paid on the amount of principal rescheduled for withdrawal on later dates, points to 'continued inadequate planning resulting in avoidable expenditure', the report added.
Inadequate utilization of foreign assistance assumes significance in view of declining foreign exchange reserves, which slipped by over $60 billion during the current year and efforts are being made by the government at the cost of fiscal prudence to boost the economy reeling under the impact of global financial meltdown.
"Since the external assistance is precious and commitment charges are being paid by the government, initiatives need to be taken to address the issues being faced by sectors for not utilizing the available funds. As on March 31, 2008, unutilized committed external assistance was of the order of Rs 78,037 crore," the Comptroller and Auditor General (CAG) said in its report, which was tabled in Parliament recently.
During 2007-08, the government paid a commitment charge of Rs 124.54 crore for undrawn assistance, mainly to the World Bank and Asian Development Bank.
The commitment charges, which are paid on the amount of principal rescheduled for withdrawal on later dates, points to 'continued inadequate planning resulting in avoidable expenditure', the report added.
Inadequate utilization of foreign assistance assumes significance in view of declining foreign exchange reserves, which slipped by over $60 billion during the current year and efforts are being made by the government at the cost of fiscal prudence to boost the economy reeling under the impact of global financial meltdown.
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Reader's comments (12)
1: The government should immediately create a
separate ministry of cabinet rank along with
highly efficient bureaucrat to head this new
ministry which simply overseas utilisation of
funds which are tied up with various external
agencies like World Bank, ADB, IMF etc. The
ministry should be responsible for
co-ordinating with various end use agencies
and plan effective utilisation of undrawn
funds. Government can also think of making
these funds available for all PPP projects as
part of equity, so that infra projects come
up fast.
Badkilaya Raghavendra
Badkilaya Raghavendra
Posted by: Badkilaya Raghavendra - 28 Feb, 2009
2: Why cant we put it in our bank & atleast
get the interest. instead of paying
penalties.
Posted by: Raghavendra Mohan - 27 Feb, 2009
3: what a waste of national money for paying
penal charges for not utilising the amount.
On one hand we cry for non-availability of
funds and on the other hand funds are not
being utilised for creating better
infrastructure etc for the needy. If this
amount is used , imagine the number of people
who will gt employment and the country will
develop the most needed infrastruxctures like
roads, hutments for the poor etc.What are our
netas doing , just sitting and thinking how
to misuse the funds or how to pocket only.
When will they wake up to the realitites?
Posted by: ashok ahooja - 26 Feb, 2009
4: it seems India has lot of money... hmmm
or
a huge crisis for the leaders/initiators too properly utilize those funds. on which of behalf they have to submit penalty.
or
a huge crisis for the leaders/initiators too properly utilize those funds. on which of behalf they have to submit penalty.
Posted by: vipul - 25 Feb, 2009
5: this kind of money should be used to develop
Infrastucture in Key cities in India to start
with ,connecting highways,building
properroads to Interntional standards (like
singapore & malaysia in asia) expand
existing airports.corruption should be
eliminated and honest approach to utilising
the funds honestly to creat a world class
infrastructure will b the key. penalising and
paying are for people without any vision.
Posted by: rags - 25 Feb, 2009
6: What can you expect form our Netas with out
vision. Secondly, WB projects are audited
unlike Govt projects and even corruption
check are in place.
At least these guys will get exposed if they execute or the our corruption rank will beat Bangala
At least these guys will get exposed if they execute or the our corruption rank will beat Bangala
Posted by: Ganesh - 25 Feb, 2009
7: i think it will be good to invest this
remaining fund be utilised for the slum
areas(jhugi jophari)construst the house for
them,and it can give new picture to the world
to achieve real concern to the poorest of
poor.
Posted by: REV.O.P.BHATIA/jnr/hp/india - 25 Feb, 2009
8: our slum living people are inteligent compare
to our Netas,they can do wonders at
globallevel.All are busy in Vote bank
politics drive.Good Brain drain out side,and
money rain inside with out proper advance
planning.
Recessation can not be controlled just by reducing excise and service tax.It will only help to big corporates not the servce class .With this money they can reduce unemployment and stop the manpower reduction from industries.
COMMON PERSON THINK OF JOB SECURITY AND HE WILL NEVER GO FOR BUY ANY SUCH THINGS WHERE THE GOVT HAS REDUCED PRICE.
PRICE INDEX ARE JUST REVERSE ALL THINGS ARE AT SAME LEVEL.
WITH BEST HOPE
V.K.SRIVASTAVA
Recessation can not be controlled just by reducing excise and service tax.It will only help to big corporates not the servce class .With this money they can reduce unemployment and stop the manpower reduction from industries.
COMMON PERSON THINK OF JOB SECURITY AND HE WILL NEVER GO FOR BUY ANY SUCH THINGS WHERE THE GOVT HAS REDUCED PRICE.
PRICE INDEX ARE JUST REVERSE ALL THINGS ARE AT SAME LEVEL.
WITH BEST HOPE
V.K.SRIVASTAVA
Posted by: V.K.SRIVASTAVA - 24 Feb, 2009
9: Tier II & III cities should be developed
immediately with modern infrastructure by
utilizing the amount to avoid migration of
rural people to metros which is teeming with
overpopulation & utter choatic
infrastructure which cannot be remedied.
Posted by: Sheshadri - 24 Feb, 2009
10: finance ministry handled by too many
people,lack of responsibility and finance
ministry have to penalized and sued for
irresponsible inacitivity and inefficiency of
finance ministry. I think people hard earned
money paid as tax are wasted like this? no
review was done on finance ministry daily
agenda?
Dhanna
Dhanna
Posted by: Dhanna - 24 Feb, 2009
11: If government ministries and agencies which
borrow from the World bank or ADB for
projects had to pay penalties for not
utilizing the committed funds on time, there
would strong incentives to ensure timely
project execution. May be the World bank/ADB
should build in these penalties in designing
the financing structures.
Posted by: Adam S - 24 Feb, 2009
12: This is called utter inefficiency. Let the
government go on.
Posted by: gambler - 24 Feb, 2009
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