LG asks PDD to meet revenue targets committed with Finance Ministry

Jammu, Mar 6: Lieutenant Governor Manoj Sinha has directed the Power Development Department (PDD) to meet its revenue targets committed with the Ministry of Finance.

He has also directed all the administrative departments to expeditiously utilise or invest unspent balance of over Rs 3000 Cr in various Single Nodal Agency (SNA) accounts of Centrally Sponsored Schemes (CSSs) as the Centre will move to the new SPARSH system during the financial year of 2024-25.

SNA SPARSH is an alternative fund flow mechanism (Real time system of integrated quick transfers) for CSS funds through an integrated framework of Public Financial Management System (PFMS), state/UT Integrated Financial Management and Information System (IFMIS) and e-kuber platform of Reserve Bank of India (RBI) in a progressive manner.

Official sources stated that LG Sinha gave these directions during a recent meeting while reviewing the progress of CSSs in the financial year of 2023-24.

They said that for PDD, his specific direction was that it should “complete smart metering works; expedite loss reduction works and meet the power revenue targets committed with the Ministry of Finance.”

During the meeting, LG Sinha asked all the departments to focus on Centrally Sponsored Schemes (CSSs) as the Union Territory (J&K) had the favourable sharing pattern. “All Secretaries and Heads of Departments (HoDs) should accelerate CSS implementation and submission of Utilisation Certificates (UCs). Increased harnessing of CSS should be ensured by close monitoring by the Administrative Secretaries and HoDs besides strong follow up with the central ministries and timely release of the Central and UT shares,” he said.

Pointing out that the UT departments have SNA balance of over Rs 3000 Cr in various SNA accounts of CSS, he cautioned, “These should be utilized or invested expeditiously since the central government will move to the new SPARSH system in 2024-25.” LG Sinha’s other focus was that the government should develop a coordinated system to ensure the minimum prescribed procurement from local SHGs or MSMEs on the GEM portal.

Sources pointed out that though Lieutenant Governor commended that the government was on the right path of development and focusing on good governance, development, performance (GDP); besides maintaining prudence in financial management. He noted that there was scope for further improvement in capital expenditure.

“The tax revenue collection has shown good improvement with increase in dealer registrations and discipline in filing of returns. Austerity measures should be implemented in the right perspective as these have helped in restricting the revenue expenditure creating more space for capital expenditure which has doubled in the last four years,” he said. With regard to the Jal Shakti department, he said the need was to focus on increasing their consumer base, billing of all new JJM consumers and timely collection of revenue.

“School Education, Higher Education and Skill Development should calibrate their fees keeping in view the per student expenditure incurred in education. Tourism and Floriculture Departments need to ensure meeting their revenue targets besides increasing avenues for additional revenue realization,” LG Sinha directed.

Sources said that during the meeting, Principal Secretary, Finance, while highlighting revenue realization during 2023-24 and the department-wise overview of financial progress of revenue and capital expenditure in 2023-24, averred that the UT government had imposed austerity measures to constrain revenue expenditure.

The Principal Secretary asserted that the increased tax revenue, constrained revenue expenditure and the central support created space for higher capital expenditure.

Giving an account of revenue accrued through main user charges or fees, Principal Secretary Finance stated that the PDD’s revenue by January 31, 2024 was 306600 lakhs against Rs 362297 lakhs in 2022-23 and Rs 222932 lakhs in 2018-19 which was a significant improvement. He informed that in case of 20 administrative departments, this figure was Rs 285923 lakhs in 2018-19; Rs 516029 lakhs in 2022-23 and Rs 427887 lakhs by January 1, 2024, which was showing a very positive surge.

He noted that the departments needed to calibrate user fees for proper cost recovery and achieve revenue realization against the targets. He appraised that the receipt of funds from the Centre under different CSS during the current year was Rs 7690 Cr as compared to Rs 6386 Cr and Rs 5997 Cr during 2022-23 and 2021-22 respectively. He too suggested that Administrative Secretaries needed to focus on improving utilization of funds under centrally sponsored schemes and to ensure balances lying in the SNAs are utilized during 2024-25 before transition to SNA SPARSH.

According to sources, the Chief Secretary was appreciative of the visible improvement in capital expenditure yet he advised Administrative Secretaries to resolve issues pertaining to CSS with the respective central ministries. He advised the Finance department to release UT shares or priority.

“Besides, 110 CSSs that are currently harnessed by the UT, there are still many untapped schemes which can be explored by the departments. Emphasis should be upon improving collection of power tariff, reducing losses, restraining power purchase, and reaching metering targets. Although GST collections have improved, there is scope for further improvement to achieve the targets fixed,” the Chief Secretary reiterated.