Performance of Audit BRGF

1.         INTRODUCTION

The Backward Regions Grant Fund (B R G F) is designed to redress regional imbalances in development. The fund will provide financial resources for supplementing and converging existing developmental inflows into identified districts.

The scheme has been started from 2007-08 financial year as part of Twelfth Finance Commission’s Recommendations and will be in force up to 2011-12 financial year.

The purpose of the Scheme is to bridge critical gaps in local infrastructure and other development requirements that are not being adequately met through existing inflows.  This plan will integrate multiple programmes that are in operation I th district concerned and therefore address backwardness through a combination of resources that flow to the district.  This wil be done without giving any schematic overlay to BRGF that would be subversive of the principle of the local prioritization in planning.

Programmes identified for implementation under the Fund will be selected through people’s participation, particularly through Gram and Ward Sabhas in the rural areas and Area Sabhas and Ward Committees in the urban areas.  Participatory plans will be prepared in each Panchayat and Municipality, which would take into account all resources being spent in the area of the Panchahat.

Distribution of funds between districts:

i)                    every district will receive a fixed minimum amount of Rs. 10 crore per annum

ii)                  50% of the balance allocation under the Scheme will be allocated on the basis of the share of the population of the district in the total population of all backward districts.

iii)                The remaining 50% will be distributed on the basis of the share of the area of the district in the total area of all backward districts.

BRGF Funds:

            There are two types of funds in BRGF Scheme: They are:

            1. Capacity Building Fund ( C B F):  This Fund is released for Rs. 250 Crores Per annum.  These funds will be used primarily to build Capacity in Planning, Implementation, Monitoring, accounting and Improving accountability and Transparency.  This could include arrangements for contracting and outsourcing.

            2. Substantially United Grant of Rs. 3500 Crores:   The allocation of these funds by Panchayats and U L Bs will be guided transparent norms and they will use these funds to address critical gaps in integrated development, identified through the participative planning processes cited in the BRGF guidelines.

           

2. OBJECTIVES OF THE PROGRAMME

1. To Bridge critical gaps in local infrastructure and other development requirements that are not being adequately met through existing inflows.
2. To Strengthen, to this end Panchayath and Municipality level governance with more appropriate capacity building, to facilitate participatory planning, decision making, implementation and monitoring, to reflect local felt needs,
3. To Provide professional support to local bodies for planning, implementation and monitoring their plans

4.      To improve the performance and delivery of critical functions assigned to Panchayaths, and counter possible efficiency and equity losses on account of inadequate local capacity.           

3. ORGANISATIONAL STRUCTURE ( FUND FLOW)

            GOVERNMENT OF INDIA

PANCHAYAT RAJ DEPARTMENT

COMMISSIONER OF PANCHAYAT RAJ

GOVERNMENT OF ANDHRA PRADESH

CHIEF EXECUTIVE OFFICER

ZILLA PARISHATH

MANDAL PARISHAD

DEVELOPMENT OFFICER

SARPANCH

4. AUDIT OBJECTIVES

5. AUDIT CRITIERIA

6. AUDIT SCOPE (AND SAMPLING)

            In the state of Andhra Pradesh, 13 districts have been selected for implementation of  the Scheme of B R G F.  They are:

1. Adilabad
2. Anantpur
3. Chittoor
4. Cudappah
5. Karimnagar
6. Khamman
7. Mahabubnagar
8. Medak
9. Nalgonda
10. Nizamabad
11. Rangareddy
12. Vizianagaram                                                                      
13. Warangal

           The highest number of districts selected for B R G F Scheme is in the state of Bihar.  They are 36 districts.

SCOPE of BRGF in Nalgonda District:

The Fund of the BRGF is received from the Commissioner of Panchayath Raj, Hyderabad to the Chief Executive Officer, Nalgonda from 2007-08 financial year onwards.  The fund thus received is divided into three parts namely,

1. Gram Panchayaths Share i.e. 50% of the fund
2. Mandal Parishath Share i.e. 30% of the fund
3. Zilla Parishath Share i.e. 20% of the fund

          Further the 20% Share is divided to all the Three Executive Engineer (P.R) Units.  From 2008-09 onwards, this 20% share is extended to the Urban Local Bodies (ULBs) i.e. Municipalities.  There are four Municipalities in Nalgonda District.  They are

1. Nalgonda
2. Miryalaguda
3. Suryapet
4. Bhongir

There are 1178 Gram Panchayaths, 59 Mandal Parishaths, 4 Municipalities and 3 Executive Engineer Units in the districts. All these institutions are getting funds under BRGF Scheme.  As per the guidelines by the Ministry of Panchayath Raj, Government of India,  different welfare and Developmental activities are taken up in Nalgonda District.

7. AUDIT FINDINGS

            Achievement of Targets in the district:

            As per the facts and figures available, it was noticed that a number developmental activities taken up in the form of buildings, electrification and Drinking water facilities.  For instance during the financial year 2007-08, the following achievements were made:

1.      Construction of 83 Anganwadi buildings completed

2.      Electrification in the form of High Mast Lights were provided in 580 villages

3.      Drinking water facility is provided in 526 villages.

Important Lapses made in implementation of the Scheme:

Though the achievements were made in the Scheme as mentioned above, there are some lapses found during the course of audit in the district.  They are:

                    

1.      Technical Sanction not obtained by the competent authority

2.      Statutory deductions were made by the executive authorities , but not remitted in some cases

3.      It was instructed in the BRGF Guidelines Chapter 4 (4.05) given by the Ministry of Panchayath Raj, Government of India, that  “Each Panchayath shall publicly display details of all schemes approved as on date and their expected commencements/completion dates”.  The aforesaid instructions were found to be ignored and in most of the cases of display boards were not found during the course of audit.

4.      Earmarked funds for SC, St were not utilized as per instructions:

As per Annexure – 4 of BRGF guidelines given by the Ministry of Panchayath Raj,  Government of India, the list of Priority schemes for funds earmarked for SC, ST development are as follows:

1.      community halls

2.      residential intermediate colleges/hostels for SC, ST children

3.      ITSs

4.      Rural play grounds

5.       One time support (of about 20 lakhs) to reputed NGOs who have land for setting up secondary schools/colleges for girls

6.      Tractors with trolleys and agricultural implements to SHGs of 20 small/marginal SC, ST farmers

7.      Training of educated youth in areas such as computers, repairs of mobile phones, driving etc.,

8.      Pre- recruitment training for para military and other security forces

9.      Construction and allotment of shops etc

·         The priority schemes, such as ‘rural play grounds’, ‘one time support to NGO to set up schools/colleges’ were ignored

·         In particular, the priority item no. 7 and 8 which were intended to develop Human Resources among SC,ST youth were completely neglected.  The very objective of introducing BRG Funds for SC, ST was not found to be fulfilled.

8. PLANNING

9. FUND MANAGEMENT

BRGF in Nalgonda District:

The Fund of the BRGF is received from the Commissioner of Panchayath Raj, Hyderabad to the Chief Executive Officer, Nalgonda from 2007-08 financial year onwards.  The fund thus received is divided into three parts namely,

4. Gram Panchayaths Share i.e. 50% of the fund
5. Mandal Parishath Share i.e. 30% of the fund
6. Zilla Parishath Share i.e. 20% of the fund

          Further the 20% Share is divided to all the Three Executive Engineer (P.R) Units.  From 2008-09 onwards, this 20% share is extended to the Urban Local Bodies (ULBs) i.e. Municipalities.  There are four Municipalities in Nalgonda District.  They are

5. Nalgonda
6. Miryalaguda
7. Suryapet
8. Bhongir

There are 1178 Gram Panchayaths, 59 Mandal Parishaths, 4 Municipalities and 3 Executive Engineer Units in the districts. All these institutions are getting funds under BRGF Scheme.  As per the guidelines by the Ministry of Panchayath Raj, Government of India,  different welfare and Developmental activities are taken up in Nalgonda District.

Salient Feature in Nalgonda District:

            The Executive Authorities in Nalgonda District have taken a decision that the drawls from the BRGF Scheme should be drawn only through Joint Cheque Power i.e. the Sarpanch concerned and the Mandal Parishath Development officer concerned

Developmental and Welfare Activities

1.                                          Anganwadi Buildings

2.                                          Gram Panchayath Buildings

3.                                          SC/ST Hostel Buildings

4.                                          BC Hostel Building

5.                                          Drinking Water facility

6.                                          Animal Husbandry

7.                                          Electrification

8.                                          Educational Institutions buildings

9.                                          Health Institutions (PHCs) development  etc.,

10. IMPLEMENTATION OF THE SCHEME

11. WORKS MANAGEMENT

12. MAINTENANCE OF RECORDS

13. SOCIAL AUDIT

            Social Audit and Vigilance at grass root level:           The State Government are instructed to issue clear guidelines to the Executive Authorities that Social Audit may be conducted by the Gram Sabhas in Rural Areas and Ward Committes in Urban Areas.  The Gram Sabha will authorize the issuance of Utilization Certificates of funds allocated for the plans, projects or programmes of the Panchahat as per the process followed in accordance guidelines issued in the national Rural Employment Guarantee Act

14. MONITORING

15. CONCLUSIONS

16. RECOMMENDATIONS

For effective implementation of the Scheme:                                                          

Ø  The executive authorities may frame the Scheme works keeping in view of the priority list suggested by the Government of India

Ø  For effective implementation of the scheme, visits to the field may be done at regular intervals

Ø  Unique programmes of BRGF such as training the youth among SC,ST for Self employment shall be implemented

Ø  The important reason for regional imbalances is economic condition of the people and literacy rate.  Steps may be taken up to raise the economic status of the people in the region

Ø  Effective steps should be taken to bring out not only the quantitative development but also Qualitative Development in the region.