Maharashtra govt’s finance dept to clear funds for innovations: ‘To prevent unnecessary expenditure’

“Now, each proposal seeking money under the innovation fund has to be sent to the Finance and Planning Department. It will be cleared within two-three days and only then the money will be disbursed,” said an official privy to the development.

Earlier projects under the “innovation fund” were approved by the District Planning and Development Committee (DPDC).

The Finance department has created a list of projects and schemes, which can be considered under the category “innovative”. The proposals sent will be cross-checked with the list and only if they match, the funds will be released.

“This is one of the ways to stop unnecessary expenditure of money… The cabinet cleared it,” the official said.

Of the total funds made available to each DPDC to be spent on developmental schemes, five per cent is reserved as “innovation fund”.

For the current year, Rs 20,000 crore has been allocated for DPDC to prioritise projects at district level and of this, 5 per cent or Rs 1,000 crore, is reserved as “innovation fund”.

“Over the years, it was observed that the ‘innovation fund’ was turning into a vendors’ fund,” said a senior official from the Finance department.

According to him, instead of spending money on creating and sponsoring real innovative schemes, it was being used for purchasing goods.

“Some money was spent on purchasing school boards or making smart classrooms. In other cases, money was used on making purchases which have nothing to do with innovation,” he informed.

The Planning department has also presented a proposal for the release of DPDC funds.

“We have decided to release the money for projects only for those which have received administrative approval,” he said, adding that the measure has been taken since the funds sit idle for years without use.