The state governments are failing to utilise the Central funds for development works, Union finance minister Pranab Mukherjee said on Friday. He reasoned that the fiscal deficit cannot be met by leaving the Central funds unpsent. “Any finance minister wants the Central funds he allots to be spent effectively. But in the year-end, it is found that the state governments fail to spend the funds. As a result, the funds are returned to the Centre,” Mr Mukherjee said.
Without naming any state, Mr Mukherjee explained, “The Centre formulates policies and programmes and allots funds accordingly. But it is the job of the state governments to carry them out because they are the implementing agencies.”
The Union finance minister was speaking at the signing of an MoU by the railway ministry, the Kolkata Port Trust and Kolkata Municipal Corporation (KMC) for the beautification of the river front in and around Kolkata.
Besides Ms Banerjee and Mr Mukherjee, Union minister of state for shipping Mukul Roy and city mayor Sovan Chatterjee were also present at the signing of the MoU.
State urban development and municipal affairs minister Ashok Bhattacharya termed the occasion “uncalled for” as the state government was not invited to the programme. “The state government was not invited to the programme. The state government should have been invited to the programme and made a party to the project,” he said.
RITES Ltd. under the railway ministry will carry out a detailed survey to prepare a master plan for the beautification project. Ms Banerjee said, “I firmly believe that Kolkata can be developed into a better city, on the lines of London. The finance ministry will guide us. The project covers the beautification of 48 ghats along the river Hooghly in cooperation with 40 municipalities and the KMC.”