The Chandigarh administration has issued a crucial directive to all its departments as the final quarter of the current financial year begins. Officials have been instructed to focus intensely on spending their allocated budgets, with special emphasis on capital expenditure funds before the fiscal year concludes on March 31.
Strict Deadline for Capital Expenditure
Authorities have made it clear that any funds remaining unspent under the capital head will lapse and cannot be transferred to the next financial year. Utilisation reports detailing how departments have spent their money will be sent directly to the Union Ministry of Finance for review. This process is part of a stringent monitoring system where the finance ministry tracks departmental spending online across both capital and revenue segments.
Sources within the UT finance department explained the urgency. "We have advised departments to remain vigilant in this last quarter and plan their spending meticulously, especially under the capital head," they stated. The officials expressed confidence based on past performance, adding, "Generally, our expenditure exceeds 99%, and this year too, we expect departments to act promptly to meet this target."
Why Timely Spending is Critical
The push for full budget utilisation is not merely an administrative formality; it has significant implications for future funding. Capital funds are specifically earmarked for development works and new projects, such as infrastructure upgrades and public facilities. In contrast, revenue allocations cover committed, recurring liabilities like employee salaries and wages.
The central government's approval for fresh capital allocations in the upcoming budget is heavily influenced by a department's past spending record. The Centre assesses previous utilisation before approving new capital demands. Therefore, failing to spend the current year's allocation could jeopardise the approval and size of next year's development budget.
Engineering Department in the Spotlight
Given that a major portion of the capital expenditure budget is handled by the engineering department for development and maintenance works across the city, all its divisions have received specific instructions. They have been urged to accelerate the execution of projects and ensure complete fund utilisation before the March deadline.
This annual exercise underscores the administration's focus on fiscal discipline and effective resource management. The directive ensures that public funds designated for Chandigarh's development are fully deployed within the stipulated timeframe, preventing lapsing and securing continued financial support from the central government for future projects.
