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Parliamentary panel raps DoP for underutilisation of funds
Joseph Alexander, New Delhi | Monday, November 21, 2011, 08:00 Hrs  [IST]

With the Department of Pharmaceuticals (DoP) failing continuously to utilise the funds effectively for many years, the Parliamentary Standing Committee attached to the Ministry of Chemicals has registered its strong reservation on the trend.


“The Committee are perturbed to note that there has been a trend that the allocated money under various schemes is underutilized and that too is not being properly and evenly spent by the Department,” said the recent report by the panel headed by Gopinath Munde.


“During the year 2010-11, an amount of Rs.125 crore was earmarked at BE (budget estimate) stage which was reduced to Rs.79 crore at RE (revised estimate) but only Rs.31.51 crore were spent by the Department upto 31 January 2011. Similarly, under the Capital Head, out of Rs.40.00 crore allocated for the year 2010-11, an amount of Rs.22.50 crore could be utilized till 31 January 2011. Thus, out of a total amount of Rs.165 crore provided at BE stage which was eventually reduced to Rs.119 crore at RE stage, only Rs.54.01 crore could be spent upto 31 January of 2010-11,” it said.


“Thus, less than 50 per cent of the revised allocation was utilized in the first 10 months which indicates that neither judicious allocations are being made by the Government nor allocated funds are utilized uniformly and to the optimum. The Committee cannot but reiterate the need for the Ministry to gear up their machinery and ensure that the sanctioned outlays are utilized uniformally so that the avowed objectives are fully achieved. The new initiatives by the Department are also necessary for the sustained growth of the pharma sector so that the creation of the Department of Pharmaceuticals (DoP) as a distinct entity is fully justified,” the report said.


Out of the BE allocation of Rs.155.25 crore during 2008-09, only Rs.109.55 crore was utilised while during 2009-10, an amount of Rs.101.80 was used by the department out of the budget allocation of Rs.155.25 crore, according to the data submitted to the Panel.


As per the mid-term appraisal of the Eleventh Plan, out of Gross Budgetary Support (GBS) of Rs.1,396.2 crore, GBS to the tune of Rs.453.9 crore has been made in first four years of Eleventh Plan.


On being asked the reasons of such a lesser GBS in the first four years of Eleventh Plan, the Department in their written reply said “Higher amounts under GBS were sought from Planning Commission in pending in-principle approvals on various schemes. But Planning Commission did not accord approval on various schemes. The major allocation meant for the establishment of 6 New NIPER(s) also remained under utilized due to administrative reasons like acquiring suitable land in selected cities and procedural issue.”

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