In a major breather to the Congress, the Union Ministry of Home Affairs has issued an advisory to the Lt. Governor to re-delegate the enhanced financial powers conferred on her to the Council of Ministers, Secretaries, heads of departments and heads of offices.
In a letter addressed to the Chief Secretary on September 27 by the Under Secretary to the Government of India, Sanjay Kumar, the ministry has found it “prudent,” to re-delegate powers after considering the fact that the delegated financial powers of the Government of Puducherry and the administrator (Lt. Governor) had considerably increased over the years”.
The MHA’s intervention was in response to the two letters Chief Minister V. Narayanasamy had written to the Union Home Minister Rajnath Singh seeking more financial powers to the elected government.
He had met the Union Home Minister on umpteen times seeking his intervention on the issue.
The letter to the Chief Secretary said the financial powers of the Government of Puducherry was enhanced from ₹50 crore to ₹100 crore in 2017.
The letter pointed out to the re-delegation of financial powers conferred upon the administrator to the Chief Minister, Finance Minister and Secretaries in 2014. The re-delegated financial power was up to ₹10 crore, Mr. Kumar said in the letter.
The MHA felt that re-delegation of financial powers to the Council of Ministers and Secretaries was again considered to be “appropriate” and in “overall interest of good governance, smooth functioning and in public interest.” “Therefore, it would be prudent to consider re-delegation of financial powers conferred on Lt. Governor of Puducherry, in terms of rule 13(3) of delegation of Financial Power of Rules, 1978 to the Secretaries/HoDs/Head of Offices and Council of Ministers proportionately as the delegated financial power of the Administrator has been enhanced substantially in many items of expenditure and more such delegation is further being contemplated,” the letter said.
The MHA felt by the new arrangement financial responsibility will be shared at different levels, which would accelerate the pace of disposal of official works.
Mr. Narayanasamy in his last letter addressed to the Union Home Minister on August 31 had sought delegation of financial powers to the elected government of Puducherry for approval or sanction for grant-in aid, capital works and schemes under the provisions of Delegation of Financial Power Rules, 1978.
Approval for full cost
The Chief Minister had sought financial powers above ₹100 crore and up to full cost to the Council of Ministers after appraisal by the Empowered Finance Committee/Standing Committee. He had sought enhancement of financial powers of the Finance Department up to ₹100 crore.
The MHA intervention, according to a senior bureaucrat, was timely as the situation was turning from bad to worse.
“It is a strong advisory considering the fact that it concurred with the elected government’s views on re-delegation. Also para 4 of the letter talks about overall interest of good governance and smooth functioning in the context of re-delegation. Now, its up to the Lt. Governor to take a call,” the official told The Hindu.
As far as the ruling Congress, the latest “positive” intervention by the MHA had come as a shot in the arm.
“Earlier, the Chief Minister was able to prevail upon MHA to overrule the objections raised by the Lt. Governor on appointment of Chairmen and Chairpersons. If the MHA had not intervened at that time it would have created dissent within the ruling camp. Its a victory for us,” a senior legislator told The Hindu.