CHANDIGARH – Punjab government has misused a central grant of Rs 86 crore meant for distribution among the panchayats to provide and upgrade basic amenities.
The amount, the first instalment of the general basic grant, was released by the Department of Expenditure, Union Ministry of Finance, under the 13th Finance Commission.
Not only were the beneficiaries in the Panchayati Raj Institutions (PRIs) deprived, but the state government also asked the Department of Rural Development and Panchayats, Punjab, to adjust the central grant against the funds received by it under the grants received under liquor tax.
Documents accessed by The Tribune reveal that after the Centre released the grant in September 2014, it was not credited into the account of Director, Rural Development and Panchayats.
Instead, the state government — through a communication in November 7, 2014 — directed the Director, Rural Development and Panchayats, to disburse Rs 86 crore out the already excess paid liquor tax grant of Rs 173 crore.
But the department wrote back that it was only left with Rs 29 crore which were needed to pay salaries of its employees.
In support of its stand, the finance wing of the department wrote back to the state Finance Department that funds collected under liquor tax were not sufficient.
Still, the Secretary, Rural Development and Panchayat, issued a utilisation certificate in February 2015 stating that first instalment of Rs 86 crore was utilised towards the PRI employees of the state. Accordingly, the Secretary (Expenditure), Department of Finance, Punjab, issued utilisation certificate to the Centre.
As a result, the second instalment of Rs 86 crore was released by the Centre in March 2015.
The anomaly is also under scrutiny of the Comptroller Auditor General of India.
