Bhopal: The Central Government has sought clarification from the Madhya Pradesh Government about the CSSs through a ‘Letter of Intent’. In a formal letter to the state government, the Centre has asked for the status of data on matching grants for these schemes by August 31.
It was envisaged that for the Central Sponsored Schemes, a matching share was to be provided with both by the Government of Madhya Pradesh as well as the Central Government and the amount was ₹232 crore each. However, as part of that, the state government has to remit ₹180 crore as matching grants and ₹55 crore as interest to the SNA account. This deposit is essential for the sustainability of funding under these schemes.
That is why the Centre’s letter stressing that the further releases of the next instalment of funds from the Central Government would depend upon this piece of information from the state is so illustrative of this matter. Without this, the ongoing projects and schemes under the CSS may either be protracted or may encounter funding problems.
Subsequently, the Finance Department has also issued directions to the Additional Chief Secretary, Principal Secretary and the Secretary seeking compliance for early submission of the desired data to the Centre. The guidelines that are provided by the Finance Department stress the relevancy of this submission to support the proper financing of development initiatives in the state.
The main Central Sponsored Schemes are important in the provision of physical and social infrastructure in the state. Thus, it is vital to discuss how to meet the requirements of the Centre to maintain such initiatives on schedule. The proposed and allocated fund spending involves coordination between the state and the central governments so that the monies are channelled properly for the use of the public.
The case highlights the importance of compliance with time frames and financial regulations in the execution of governmental programs, which affect the state’s people and its further evolution.
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