The state of the stimulus: Centre to take stock

The government has decided to embark on a major exercise to take stock of the implementation of the stimulus packages by the states....

The government has decided to embark on a major exercise to take stock of the implementation of the stimulus packages by the states. It has convened an meeting of chief secretaries and union secretaries on this issue on Saturday,implying that the focus has shifted from Budget preparations to neutralising the effect of meltdown on the Indian economy.

In a letter to state chief secretaries,cabinet secretary K M Chandrasekhar has invited them to the capital to discuss the implementation of stimulus packages. You would agree that the meeting has to be sharply focused. We must concentrate on issues that can be solved at the Central level and those which can be solved at the state level to implement schemes, Chandrasekhar observed in his letter. In fact,the Centre is taking implementation of the packages so seriously that before being hospitalised,Prime Minister Manmohan Singh had himself written to all the chief ministers suggesting a meeting between them and the central government on the implementation of the packages.

The meeting would also lay due emphasis on expediting the pace of executing major projects and schemes. It will find ways to ensure that the earmarked funds be efficiently utilised by March 31. In the first package announced on December 7,the Centre had announced that it has decided to seek authorisation for additional plan expenditure of upto Rs 20,000 crore in the current year. It had also stressed on full utilisation of funds already provided,so that the pace of expenditure was maintained. In the second package announced on January 2,the government had said it would work closely with the states to encourage them to release land for low-income and middle-income housing schemes. As a one-time measure till June 30 this year,states will be provided assistance under the JNNURM for purchase of buses for their urban transport systems.

Besides,the government is closely monitoring its spending to expedite the pace of expenditure for all schemes and programmes. The government has decided to set up a fast-track monitoring committee to ensure expeditious approval and implementation of Central projects. The chief ministers have been advised to do the same. Besides the chief secretaries,their counterparts from the union ministries such as planning,rural development,urban development,housing and urban poverty alleviation,road transport and highways,railways,and power and water resources will be present in the interface,which is likely to be chaired by Chandrasekhar.