New Delhi, Mar 21 (PTI) A Parliamentary panel on Monday expressed concern over inadequate budgetary allocation for department of fertilisers for 2022-23 fiscal and asked the finance ministry to allocate sufficient funds in Budget itself for timely and optimum utilisation of the amount.

The standing committee on chemicals and fertilisers in its report on 'Demand for Grants' noted that Rs 1.09 lakh crore has been allocated to the department of fertilisers for 2022-23 against the projected demand of Rs 1.76 lakh crore in order to meet the requirements of the department's various schemes and policies.

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"...The cut in BE allocation is by Rs 67,518.36 crore which amounts to 38 per cent of the projected requirements of the department," the report said.

According to the department, the allocated amount is not sufficient to meet the projected requirement of subsidy funds for 2022-23, and the requirement for additional funds will be re-assessed and demanded at the time of revised estimates (RE)/ supplementary, depending on the prices of raw materials and fertilisers.

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However, the expenditure before RE stage is done on the basis of BE allocation only. RE is mostly finalised by December every year and the same is regularised through 2nd batch of supplementary demands for grants.

Hence, the funds approved at RE stage mostly reaches the department during the last quarter of the financial year only.

During 2021-22, a total of Rs. 84,041.39 crore was allocated at BE stage, which was increased to Rs. 1.49 lakh crore at RE stage. This was about 78 per cent increase over the BE. As a result of such late infusion of funds, the department of fertilisers was able to spend only Rs 1.17 lakh crore as on January 31, 2022.

"...the gap between the projected requirement for 2022-23 and the budgetary allocation may eventually result in delayed payment/settlement of claims in respect of both urea and P&K fertilizers subsidies and will thereby adversely affect the financial performance of the fertiliser sector as a whole," the report said.

The drastic reduction of funds at BE (budget estimate) stage will upset the expenditure planning for the whole year, and the substantial allocation of fund at RE stage for subsidy payment reflects the poor planning by both the finance ministry as well as the fertilisers department.

"The committee, therefore, recommend that the Department of Fertilizers should strengthen its budgetary planning process and come out with accurate demand for funds so as to convince the Ministry of Finance to allocate funds as per its requirements at BE stage itself without any cuts for its subsidy schemes," the report said.

Considering the importance of providing fertilisers to the farmers at subsidised rates, the panel also suggested that the finance ministry should accord priority status to this department and strive to allocate the funds required by the department at BE stage itself. This will facilitate timely and optimum utilisation of funds by the department and will eventually give boost to the agriculture sector in the country.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)