Restore finance redistribution powers: UT to Centre

Chandigarh: With the Centre taking from UT the power of bifurcating and distributing its finances within departments as per requirements and internal financial arrangements, the administration has flagged its concerns about the move with the ministry of home affairs (MHA). According to the UT, the process of redistribution of funds among UT departments by the department of expenditure, ministry of finance, would be greatly lengthened and delayed. Emphasising that this would affect timely distribution of finances, UT said that the redistribution system must be restored as per past practice.
UT flagged the issue with MHA as it is under the direct jurisdiction of the ministry. The administration has requested MHA to raise the issue with the ministry of finance and ensure that the power of redistribution of finances among UT departments is given back to the Chandigarh administration.
It was pointed out that since the department of expenditure, ministry of finance, deals with multiple works related to different states and union territories, redistribution of Chandigarh's finances will add to their workload. Moreover, the ministry would still be in the loop as the UT sends financial details to it from time to time, a senior UT official told TOI.
Sources in the Chandigarh administration said that many departments in the Chandigarh administration are unable to spend their entire allocated amount in the financial year and the amount that they surrender is given to departments that need the money.
This redistribution of finances from one department to another under internal financial arrangements was being done by the UT finance department but the task has now gone to the department of expenditure, ministry of finance. Now, as per the new exercise, the UT will prepare and send financial redistribution details to the department of expenditure, ministry of finance, which will take a decision on the redistribution. This will be a time-consuming process.
Box: UT keeps Centre in loop
The Chandigarh administration provides every financial detail of the allocated amount under the financial year budget to the ministry of finance. The UT finance department has to give monthly and quarterly financial details to the ministry. The administration has to fill a proforma for the purpose and the ministry minutely assesses the financial position of the Chandigarh administration, planning the budget accordingly.
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