Question : DIVERSION OF CALAMITY RELIEF FUNDS

(a) whether several State Governments have diverted the calamity relief funds to other projects as reported in the India Express dated February 17, 2001;

(b) if so, the details thereof alongwith the funds misused by them;

(c) whether any High Power Committee has been set up to enquire into the matter;

(d) if so, the findings thereof;

(e) the action taken by the Government against such erring State Governments; and

(f) the concrete measures taken/proposed to be taken to keep a check on proper utilization of calamity relief fund?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI SHRIPAD Y. NAIK)

(a): The Comptroller and Auditor General of India (C&AG) in its Report No.3 of 1999 (for the year ended March, 1998) has pointed out that some State Governments have diverted funds from the Calamity Relief Fund (CRF) for activities not connected with relief measures.

(b): The C&b’s Report indicates diversion of funds amounting to Rs.519.54 crore out of Calamity Relief Fund(CRF) by States of Himachal Pradesh, Tripura, Kerala, Haryana, Orissa, Manipur, Andhra Pradesh, Rajasthan, Karnataka, West-Bengal, Sikkim, Meghalaya, Uttar Pradesh, Bihar, Gujarat, Assam, Madhya Pradesh etc.

(c): No, Sir.

(d): Does not arise.

(e): The observations have been brought to the notice of the State Governments concerned and they have been requested to take corrective measures. Department of Agriculture & Cooperation has again emphasised the need for observing the scheme of CRF and guidelines issued thereunder for being followed scrupulously by the State to avoid recurrence of such instances. The States have taken up necessary corrective action.

(f): In accordance with the recommendations of the Eleventh Finance Commission(EFC), a new scheme of Calamity Relief Fund(CRF) has been constituted and circulated on 24.11.2000 by the Ministry of Finance to all the State Governments, Accountants General of the States, Comptroller and Auditor General of India (C&AG) etc., and the release of funds from the CRF has been made conditional to the constitution of a Calamity Relief Fund(CRF) by the State Government in the prescribed manner duly certified by the Accountant General of the State; furnishing of a certificate indicating that the amount received earlier has been credited to the fund alongwith the State share of contribution, accompanied by a statement giving the up-to-date expenditure and the balance amount available in the CRF, the statement itself shall be treated as utilisation certificate; States are also required to submit an annual report on natural calamities every year.