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Release of funds at the fag end of 2015-16 by the MSME Ministry under the Prime Minister’s Employment Guarantee programme (PMEG) led to ₹481.75 crore lying idle in bank accounts, a CAG report has pointed out, adding that this affected projects and led to only 3.2 lakh jobs being created against a target of 5.16 lakh.
“During 2015-16, the budget for PMEGP was revised as late as February 2016. An amount of ₹85.82 crore was released by the Ministry on February 16, 2016 and another ₹318.46 crore was received in the fag end between March 22 and March 31, 2016.
“Such delayed receipt in the fag end of the year led to parking of funds to the extent of ₹481.75 crore in bank accounts at the year end at headquarters and field offices,” the Comptroller and Auditor General (CAG) report on compliance audit, tabled in Parliament, noted. The MSME Ministry, however, put the ball in Finance Ministry’s court in its reply in November 2016 to CAG, which audited the period between August 2008 and March 2016.
“The late receipt of approval of Finance Ministry was the reason for late release of funds,” it said, adding that the funds would be utilised in 2016-17, adding that the first instalment of subsidy is released during the first quarter of 2015-16 and the second one is released subsequent to 60 per cent utilisation of the first instalment.
‘Structural gaps’However, while noting “structural gaps” in the fund release process and coordination between operating units, CAG said: “Funds were released against prescribed targets and not against verified claims,” adding that this “could result in rush of loan sanctioning without due diligence.”
The CAG also noted that funds to the extent of ₹276 crore to ₹507 crore are also lying with the Khadi and Village Industries Corp headquarters in flexi term deposits since July 2016 to October 2016 “awaiting utilisation”.
The PMEGP aims to generate jobs in rural and urban areas through setting up self-employment projects and micro enterprises and falls under the Ministry of Micro, Small and Medium Enterprises (MSME). Between 2008 and 2016, the scheme has reported achieving a target of 67 per cent in respect of employment generated.
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