Finalise norms before announcing schemes in Budgets: report, Pg 13

Parliamentary Committee Recommendations

• The Standing Committee on Housing & Urban Affairs recommended pre-finalizing documents and guidelines for schemes before their announcement in Budgets.
• This would prevent fund allocation without immediate utilization and ensure timely approvals.

Unutilized Budget Allocations

• Two major schemes affected:
  • Urban Challenge Fund (₹10,000 crore)
  • Scheme for Industrial Housing (₹2,500 crore)
• Previous schemes like PM-eBus Sewa Scheme (2021-22) received funding but delayed execution.
• The National Urban Digital Mission (2024-25) received ₹1,150 crore but is yet to receive Cabinet approval.

Challenges in Budget Execution

• Funds remain parked due to slow approvals, leading to inefficient utilization.
• Delayed decision-making affects infrastructure projects and economic momentum.
• Government’s aim: Improve accountability in fund allocation and avoid spillovers into subsequent financial years.

Analysis & Way Forward

• Pre-announcement consultations with stakeholders should be mandatory.
• Policy measures: Real-time tracking of fund usage, stricter fiscal discipline, and timely approvals.
• Implementing a performance-based evaluation system can enhance budget efficiency.

Mains Mock Question:

"Discuss the challenges associated with fund allocation and utilization in government schemes. Suggest measures to ensure effective implementation of budgetary allocations."