PM Poshan: Centre yet to release nearly half of 2022-23 funds

It is learnt that the release of funds is held up as most states are taking time to adopt the new financial management system for centrally-sponsored schemes announced by the Centre in 2021.

The release of funds under centrally sponsored schemes such as PM Poshan is also tied to the utilisation rate. (File)

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With the current financial year drawing to a close in less than two months, the Centre has released only 53 per cent of the total outlay for the midday meal programme in 2022-23, according to a data furnished by the Ministry of Education in the Lok Sabha.

The revised estimate for the midday meal programme, rebranded as PM-Poshan in 2021, was Rs 12,800 crore for 2022-23. It was a significant increase from the budget estimate of Rs 10,233 crore.

However, on Monday, the ministry informed the Lok Sabha, in response to a question raised by Nationalist Congress Party (NCP) MPs Supriya Sule and Amol Kolhe, that “so far, Rs. 6789.06 crore has been released to the states and Union Territories during 2022-23 for the implementation of the scheme.” The government did not share any reason behind the delay in the release of funds.

But it is learnt that the release of the funds is held up as most states are taking time to adopt the new financial management system for centrally-sponsored schemes announced by the Centre in 2021.

Under the new system, the states are expected to transfer funds for such schemes to designated accounts called Single Nodal Accounts (SNA) within 21 days of receiving them from the Centre. In October and November, the Ministry of Education wrote to the states flagging delays in such transfers.

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The release of funds under centrally sponsored schemes such as PM Poshan is also tied to the utilisation rate. If states fail to spend at least 75 per cent of the funds released by the Centre in the first installment, the second installment gets stalled.

Meanwhile, for the year 2023-24, the Centre has earmarked Rs 11,600 crore for PM-Poshan, which is one of the foremost rights-based centrally sponsored schemes under the National Food Security Act, 2013 (NFSA).

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Under the scheme, most components, including the cooking cost, are split in a 60:40 ratio between the central government and the states and UTs with legislatures, and 90:10 with the northeastern states, Jammu and Kashmir, Himachal Pradesh and Uttarakhand. The cost of food grain is borne entirely by the Centre.

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Accordingly, in 2021-22, the Centre released Rs 10,226 crore for PM Poshan, and the states accounted for Rs 6,976 crore. This information was shared by the Centre in the House responding to another question raised by MP Sisir Adhikari, who was elected on a Trinamool Congress (TMC) ticket in 2019 before parting ways with the party.

PM-Poshan covers about 12.21 crore children studying in Bal Vatikas (pre-schools) and classes I-VIII in 10.84 lakh government and government-aided schools. As per the provisions of NFSA, all such students are entitled to one hot cooked meal every day except on school holidays.