efficient use of resources; why is only x percentage of national education budget being spent
TRANSCRIPT
Efficient use of resources; why is only X percentage of National Education Budget being spent
Hypothesis
• District Education Departments do not have the capacity for effective utilization of budget.
Method
• Analysis of budget of two Districts – 2006-07.• District 1 – Families 335000 Schools 1428• District 2 –Families: 225000 Schools: 937
Budget heads
• Non Development; Salaries and Non salaries – Stationary, POL, Honorariums; SMC funds
• Development: Capital – Civil Works Others – Furniture
Case Study – 1
Budget Utilization – Education Department
Development Budget
• 2% of total budget for district education department
• 70% of allocated budget utilized during financial year 06 – 07.
Common Reasons for Under Utilization of Development Budget
• Schemes completed in savings – highest %age• Schemes dropped being unfeasible land issue,
HT Line not available• Delay due to slow work progress by
contractor; rates revision; death of contractor; conflict with community on land and access
• Delay in provision of demand notice – issue of Electricity
Budget – Comparison
• Non Development: Rs. 1,112,191,731
• Spent:Rs 1,089,107,855
• Unutilized:Rs 23,083,876(2.08%)
• Non Development:Rs 651,801,535
• Spent:Rs 609,149,878
• Unutilized:Rs 42,741,657 (6%)
District - 1 District - 2
Variables for Analysis
1. Repair and maintenance of transport2. Repair of machinery and equipment; 3. Furniture and fixture4. Repair of building and structure5. Traveling allowance6. Rent of office building7. SMC
Head: Repair and maintenance of transport
• Budget provision: 440,00• Addition in June : 40,000• Total : 480,000• Spent till May :264,424• In June : 80,377• Unspent :
135,199 or 30%
• Possible Reason: overestimation in February
•Budget provision : 490,000
•Addition in June : NIL
•Spent till May :70,616
•In June :15,540•Unspent : 403,844
or 80%•Possible Reason:
vehicles not purchased
District - 1 District - 2
Head: Repair Machinery and equipment
• Budget provision: 962,000• Addition in June: 257,000• Total :1,218,000• Spent till May :
80,400• Spent in June : 674,071• Unspent : 464,529
or 38%
• Possible Reason: June fever; lack of focus on this head during the year
•Budget provision: 439,420
•Addition in June : NIL
•Spent till May : 229,304
•Spent in June : 20,690
•Unspent : 189,507 or 43%
•Possible Reason: Overestimation
District - 1 District - 2
Head: Repair of Furniture and fixture
• Budget provision: 1,967,000• Revised :1,232,493
• Spent till May : 107,550• Spent in June :
684,617• Unspent : 440,325
or 36%
• Possible Reason: June fever; lack of focus on this head during the year
•Budget provision : 658,430
•Revised:
•Spent till May : 574,925
•Spent in June : 24,827
•Unspent : 58,678
or 9%Possible Reason:
District - 1 District - 2
Head: Repair of Building and structure
• Budget provision:7,500,000• Revised : Nil
• Spent till May : Nil• Spent in June :7,500,000• Unspent: NIL
•Budget provision: 7,317,917
•Revised : Nil
•Spent till May : Nil
•Spent in June :4,038,025
•Unspent :3,279,892
District - 1 District - 2
Head: Traveling allowance
• Budget provision : 2,526,239• Revised: 2,515,171 (11,068)• Spent till May: 1,163,291• Spent in June: 791,695
• Unspent : 560,185• Possible Reasons: activities
performed but late payment; -------------
•Budget provision: 1,776,011
•Revised:
•Spent till May: 1,180,444
•Spent in June: 1,110,511
•Excess: 514,944
District - 1 District - 2
Head: Rent of office building
• Budget provision: 1,010,000• Revised : 1,028,500
• Spent till May: 185,030
• Spent in June: 507,114• Unspent:
336,356• Possible Reasons: -------------
•Budget provision: 342,000
•Revised: ••Spent till May: 65,998
•Spent in June: 70,598
•Unspent: 205,404
District - 1 District - 2
Head: Internal Merit scholarship
• Budget provision: 960,000• Revised: Nil
• Spent till May: 488,740
• Spent in June: Nil• Unspent:
471,260Possible Reasons: -------------
•Budget provision: 241,277
•Revised:
•Spent till May: Nil
•Spent in June: 241,277
•Unspent: Nil
•Possible Reasons: -------------
District - 1 District - 2
Head: SMC
• Budget provision:27,290,000 for 935 schools
• Revised : Nil
• Spent till May : Nil• Disbursed in June: 27,290,000• Spent / Unspent: No
information• Possible Reasons: -------------
Budget provision:22,040,000
Revised : Nil
Spent till May : NilDisbursed in June: 22,040,000Spent / Unspent: No
informationPossible Reasons: -------------
District - 1 District - 2
Common Reasons for Under Utilization of Non-Development Budget
• Issue of sanctioned posts VS recruitment – Highest %age– Recruitment is a political issue; delays in issue of
appointment orders
• Furniture: DDO did not know about the availability of funds till April; delays in approval ; DDO did not know about the source from whom to get approval; no one wanted to be responsible for the purchase of furniture – fear of accountability