Steep fall in DoNER fund utilization; Web-based systems introduced to improve fund use

Staff Reporter

Guwahati: The utilization of funds for schemes implemented by the Ministry of Development of North Eastern Region (DoNER) witnessed a sharp decline in recent years. Compared to the 100 per cent utilization of DoNER funds from 2019-20 to 2021-22, the uses in financial years of 2022-23 and 2023-24 were only 40.42% and 33.55%, respectively.

During 2019-20, the revised budget estimate for schemes under DoNER was Rs 2670 crore, and the funds were utilized fully. In 2020-21 and 2021-22, against the revised budget estimates of Rs 1860 crore and Rs 2658 crore, fund utilization was again 100%. However, in the subsequent financial years (FYs) of 2022-23 and 2023-24, the fund utilization was remarkably poor.

In FY 2022-23, the revised budget estimate was Rs 2755.05 crore, and the expenditure against this was Rs 1113.71 crore, which comes to 40.42% only. Again, the revised budget estimate was Rs 5892 crore in FY 2023-24, but the expenditure was Rs 1976.76 crore, which works out to just 33.55%.

According to a statement from DoNER, funds in FY 2022-23 & 2023-24 could not be fully utilized for multiple factors, including the resolution of issues faced during the transition to a new system of accounting/funds transfer adopted from April 1, 2022. Further, utilization of allocated funds was also hampered due to delays in project implementation by state governments/implementation agencies (IAs) because of the short working season on account of inclement weather conditions; difficulties in transportation of men and material due to difficult terrain; land acquisition issues, etc.; and also because of delays in submission of demand/claims by the state governments.

To improve utilization of funds allocated, web-based systems have been introduced to streamline the processes of selection, appraisal and approval of projects as well as for submission of claims/demands by states/IAs. The option for single-stage approval (direct submission of DPR) has been provided to states. The fund release framework has been streamlined with funds to be released in four equal instalments, based on utilization of previously released funds and physical progress. Sectors covered and financial limits for individual projects have been clearly defined for each scheme, thus eliminating the overlap. Monitoring of ongoing projects through Project Quality Monitors (PQM) and Third-Party Technical Inspections (TPTI) has been introduced to ensure timely implementation of projects. These steps have proven to be effective, as an expenditure of Rs. 3397.91 crore (84.82% of RE in 2024-25), the highest ever for the ministry for a financial year, has been booked till February 2025.

Also Read: Assam: Ministry of DoNER Forecloses Five Projects in State

 Also Watch: