As the government readies for the 2012-13 union budget, slated to be presented in parliament on Friday, a new study shows severe underutilisation of funds and sluggish progress of different government schemes in the first ten months of the financial year 2011-12 (April 2011 to January 2012).

Only 47 percent of funds amounting to Rs 2418.6 crore has been disbursed to backward region grant fund despite finance ministry having increased 35 percent allocation in the last year budget. The ministry of panchayati raj is the nodal agency for the release of the funds.

The Integrated Child Protection Scheme (ICPS) that ensures safe and secure environment to children has utilised just 45.2 percent of its funds. Another government scheme, Indira Gandhi Matritva Sahyog Yojana (IGMSY), meets the same fate as it has utilised just 55 percent of its funds in 10 months of April 2011 to January 2012. The scheme targets pregnant and lactating mothers.

“The disbursement of funds for plan expenditure by the union government during April 2011 to January 2012 (at Rs 2,93,961 crore) has been only 66.6 percent of the budget estimates for 2011-12 (at Rs 4,41547 crore),” said the report prepared by New Delhi based think tank, Centre for Budget and Government Accountability (CBGA).

The government committed two-fold increase of special central assistance to boost the northeastern region in the last year’s budget. But the neglect continues as only 56 percent of funds has been utilised across plan schemes in this category during April to November 2011, said the report.

Even the commercial banks have been poor in providing credit to farmers in 2011-12, the report said on the basis of the National Bank for Rural and Agricultural Development (NABARD) data.

“The union government needs to pay adequate attention to the issue of systemic weaknesses in the government apparatus at the state, district and sub-district levels that have been constrained the quality of implementation of most of the development schemes,” said Subrat Das, executive director, CGA.

Only 68 percent of funds have been spent in the Rajiv Gandhi Scheme for Empowerment of Adolescent Girls from the last year budget, the report added.

“The government needs to honour its commitments for higher public spending for the social sectors and for prorgammes that target the marginalized group,” said Nisha Agrawal, Oxfam India CEO.

“The budget this year is doubly important because it is also the year when the 12th five-year plan will be launched for the period 2012-17,” she added.