Poor utilisation of funds results in little progress for Slums

One of the sub-missions under JNNURM is BSUP (Basic Services for the Urban Poor) was launched in December 2005. The focus of this scheme was to improve conditions for Urban Slum dwellers in 63 identified cities across the country.

Till now, the Government has sanctioned 479 projects covering 10 lakh dwelling units. The scheme is nearing its end (2005-12), however most of the states have not even utilised 50% of the funds allocated under the scheme. The worst performing states are Punjab which has utilised just Rs. 26.4 crore (6%) of the allocated Rs 444.46 crore as on February this year. Other states that have performed poorly are Bihar, Delhi and Himachal Pradesh. States which have utilised more than 50% are Andhra Pradesh, Gujarat, Haryana, Kerala, Nagaland and Sikkim.

Major reasons cited for poor performance are non-furnishing of project proposals, procedural problems in fund transfer, procurement, and lack of availability of litigation free land etc.

Poor coordination is the biggest problem that most Centrally Sponsored Schemes (CSS) face, resulting in poor uptake of funds. Till now the Central/State Governments have not been able to find a solution for the same. Is it because the ways schemes have been designed, State Governments do not feel accountable for any of the CSS scheme.


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e-mail: socio-research@sma.net.in


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