Taking a lesson from the bitter experience of the multi-crore NRHM scam in UP under the dispensation of former chief minister Mayawati, the Centre will now end the practice of sending funds directly to independent societies in states. The Centre will in place give the funds for various Centrally-sponsored schemes to the state governments. The move also includes a penal provision which will come in force if the fund is diverted or not given to implementing agencies within 15 days.
Along with the NRHM, the Centre also gives funds for Sarva Siksha Abhiyan (SSA) directly to the independent societies, while in the case of Indira Awas Yojna (IAY), it goes to the district administration. But it was the scale of the scam in NRHM, which is being investigated by the CBI following which a number of the ministers of the Mayawati Cabinet were sent to jails, which jolted the Union finance ministry for course correction.
“From the next financial year, the funds for schemes like IAY will go into the account of the consolidated fund of the state. The state governments will have to disburse the funds to the implementing agencies within 15 days, failing which they will attract penal charges,” said Union rural development minister Jairam Ramesh.
Further keeping in mind the habits of some of the state governments not to use funds coming from the Centre and in place earn interest on them, the move seeks to curb the practice by the prohibitive penal charges in cases of diversion of funds. The change in the policy will be effective from April 1, 2014, added the minister.
Additionally, Mr Ramesh said that the states will now be sending a consolidated proposal under the IAY in place of the districts currently approaching Centre with their respective demands. In another change, Mr Ramesh added that the housing units built under IAY will need to have toilets as a matter of compulsion for which additional funding will be provided through Nirmal Bharat Abhiyan. The states will also have the freedom to identify the difficult areas to avail higher funding of `75,000 per unit under the IAY. He informed that only 21 per cent of the housing units built under IAY have toilets in them.