Punjab Panel Flags Irregularities in 15th Finance Commission Grants, Demands Probe
Punjab Panel Flags Irregularities in 15th Finance Commission Grants

Punjab Legislative Committee Uncovers Widespread Misuse of 15th Finance Commission Grants

The Punjab Vidhan Sabha Committee on Panchayati Raj Institutions has raised serious concerns over extensive irregularities in the utilization of grants allocated to the state under the 15th Finance Commission. In a significant development, the committee has strongly recommended a comprehensive probe to be conducted by a joint committee comprising four senior officers from key departments.

Committee Demands Swift Investigation and Detailed Reports

Headed by AAP MLA Principal Budh Ram, the committee has issued a directive for separate investigation reports to be prepared for each individual panchayat unit, with a strict deadline set for submission by July 31. This urgent timeline underscores the gravity of the situation and the committee's commitment to ensuring accountability and transparency in the use of public funds.

In its ninth report, which was formally tabled in the Punjab assembly on Monday, the committee presented detailed findings based on its examination of audit paragraphs from various Panchayati Raj institutions. The report explicitly states, "During various meetings, while examining the audit paragraphs of different Panchayati Raj institutions, the Committee observed large-scale irregularities in the use of grants received under the 15th Finance Commission." Furthermore, it was noted that in numerous instances, the grants released under the commission were diverted for purposes other than those intended, blatantly disregarding prescribed conditions and regulatory rules.

Proposed Joint Committee and CAG-Led Inquiry

The committee has proposed the formation of a specialized joint committee that would include one senior officer each from the following critical departments:

  • The Department of Rural Development and Panchayats
  • The Finance Department
  • The Audit & Local Fund Accounts Division
  • The Office of the Comptroller and Auditor General (CAG)

This panel is tasked with the responsibility of preparing individual, detailed reports for every panchayat unit and submitting these findings to the assembly committee by the end of July. In addition to this, the committee has also advocated for a separate, high-level inquiry to be led by the Comptroller and Auditor General (CAG) specifically focusing on the utilization of the 15th Finance Commission grants. The results of this CAG-led investigation are to be presented directly to the Punjab assembly, ensuring legislative oversight and public scrutiny.

Additional Concerns: Delays in Grant Disbursal and Financial Burden

Beyond the irregularities, the committee highlighted significant delays in the release of central grants to gram panchayats, block committees, and district panchayats. These delays have forced the state government to incur additional interest and financial charges, placing an unnecessary burden on the state exchequer. The committee emphasized that such delays must be avoided at all costs and called for timely disbursal of grants to prevent further financial strain. It has also sought comprehensive information regarding the exact financial impact and burden caused to the state treasury as a result of these procedural delays.

Recommendations for Enhanced Security and Accountability

To bolster security and prevent misuse, the committee made a crucial recommendation concerning digital signatures. It advised that funds allocated for digital signatures under the 15th Finance Commission should remain exclusively under the control of the authorized officer responsible for them. These digital signatures must not be shared with any other individuals, thereby reducing the risk of unauthorized access and potential fraud.

This comprehensive report and its recommendations mark a pivotal step towards addressing financial mismanagement and ensuring that grants intended for rural development and panchayati raj institutions are used appropriately and effectively for the benefit of the people of Punjab.