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  • Category: Miscellaneous

    Can governments use funds belonging to one department to another department?

    The State and the central governments will be making yearly budgets and allocating funds to every department based on the need. Once the budget is discussed in the parliament or assembly and taken its approval, it is the duty of the government to adhere to that and spend accordingly. Sometimes in difficult situations and unexpected happenings, they may be using here and there. But every time diverting the funds from one department to other departments is not a good practice I feel.

    Recently we are seeing in the newspapers that the AP government is drawing money from one account and using it for another purpose, many times. The money belonging to TTD is also being taken away by the government and now the funds allocated to Universities are also being used for other purposes.

    What are your comments on this matter?
  • #747279
    There has been consistent manipulations at the state level when it comes to funding and spending for the cause designated. The state has every right to cancel funds allocated to one department and spend the same to other own under the emergency funding and later adjusted. But when the center releases funds for a particular cause, that should be spent for the same. For example the center funds for the Ambulance 108 service and that is called NAS fund and many state governments are showing that 108 ambulance is their creativity and even using the CM photo and state govt emblem squarely forgetting center contribution. When the audit takes place the misgivings would come into fore and the state govt would be cornered. In this case money belonging to TTD used for other department is really malafide intention.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #747288
    If the planning of the projects and earmarking budgets for them is smooth then there will not be any need to use one fund from a specific purpose to other place or to other project. Unfortunately, in practice that does not happen as there are so many changes in the Govt plans that under one head they would not be used while under some other head there would be shortage of funds. To solve this problem there is a procedure of re-appropriation of funds from one head to other and there are competent authorities who can give permission and sanction for that. So when the competent authorities themselves need such a shifting of funds from one head to other then who can stop them for doing that even in a rampant fashion. Re-appropriation of funds is very common in PSUs and Govt departments. Another thing is budget is to be used in the current year failing which it has to be revalidated for the next year which inflates the budget of next year bringing audits and objections etc which everyone tries to avoid.
    Knowledge is power.

  • #747318
    During the Congress regime at the center and when NTR was at the helm of affairs in AP, the then PM Rajiv Gandhi openly criticized the state CM for withdrawing from central fund and utilizing for state projects. The center used to fund for urban renewal mission and in those days JNRUM was the pet project of Congress government through which modern buses to be operated in big cities were planned but the TDP government has channeled that amount to something else and hence earned the wrath of the PM then. Even the public accounts committee would find fault with those state govts which do not follow the rules and use for other purpose. Many a time the center would stop funding the state as the designated funding to a particular sector is not spent. Even the plan outlays for the states has been slashed.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #747397
    The purpose of budgeting is to have an orderly financial plan so that transactions can be done in a disciplined manner. In emergency or dire need for some work Govt will not adhere to those stipulations and would use the money wherever it is available subject to ratifications and post facto approvals at a later stage from the competent authority respectively in each case.
    Knowledge is power.


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