India sits on unutilized $15.6 Billion
By siliconindia   |   Tuesday, 24 February 2009, 20:30 IST   |    12 Comments
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India sits on unutilized $15.6 Billion
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.

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