Parl panel proposes fine, incentives to ensure utilisation of judicial infra funds

Amid instances of non-utilisation of funds to create infrastructure for the subordinate judiciary in the northeastern states, a parliamentary panel has proposed a system of penalties and incentives, saying it could create a sense of urgency among the states for timely and effective use of the funds.

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In its report on judicial infrastructure in the northeastern states presented in Parliament last week, the department-related Standing Committee on Law and Personnel said the revised procedural guidelines for the release of centrally-sponsored scheme (CSS) funds under the new Public Financial Management System (PFMS) have apparently slowed down the pace of release of funds.

“Due to stringent conditions attached for the release of funds, most of the states are finding it difficult to get their quota of funds despite having huge requirements for their ongoing and new projects,” it observed.

Citing data from the Department of Justice, it said three of the eight northeastern states did not get any funds during 2022-23 due to such norms.

It suggested that the department should approach the Finance Ministry to get the guidelines on the release of CSS funds relaxed, wherever the states are facing genuine difficulties in the implementation of such guidelines.

The panel observed that it understands that there is an issue of non-utilisation of the funds released earlier in the northeastern states, which hinders the release of further instalments in the scheme for the creation of infrastructure.

“The committee further emphasises that a system of penalties or incentives may be introduced in the scheme so that states may get motivated to improve their financial management practices and ensure that funds are used fully and effectively. This could also create a sense of urgency among the states for timely utilisation of funds,” the report said.