Centre defers payment to states by raising erroneous arguments, Sivankutty on mid-day meal row

Thiruvananthapuram: Education Minister V. Sivankutty on Saturday blamed the Centre for the financial crisis faced by schools in delivering the mid-day meal scheme in the state. He alleged that the centre had deferred payment by raising erroneous arguments. 

In a Facebook post, Sivankutty said that the Union Government tends to delay or withhold payments to states by citing unjustified arguments, even after submitting all needed evidence, including financial records, in the case of the mid-day meal scheme. 

As a result, the government struggles to allocate funds to schools for implementing the mid-day meal programme and issue honorariums to cooks, he added. 

"The Union Government's failure is the reason for crisis in the distribution of funds related to the mid-day meal scheme. The midday meal scheme is implemented as a central programme. According to the rules, the central government has to provide the states with food grains (rice) and 60 per cent of the operational cost. However, there have been delays in allocating the centre's shares to the states from FY 2021-22, when PFMS (Public Financial Management System) became a part of the scheme."

"The central government is delaying or denying the due amount to the states by raising unnecessary arguments even when the proposals for receipt of central allocation and the previous year's financial accounts are duly submitted on time. The unprecedented crisis had severely affected the state's capacity to implement the project. Due to the delay in receiving the central allocation, we struggle to disburse the funds to schools and monthly honorarium to the cooks on time." 

"As per our understanding, the centre had set aside more than Rs 10,000 crore as its share for the projects to the states and union territories in the current fiscal year. Even though the fiscal year is half through, the central government is yet to release the first instalment of the central share (60 per cent amount) to the states and union territories. So far, only Madhya Pradesh (Rs 156.58 crore) has received funds."

"The central allocation to the state for the current year for running the school mid-day scheme is Rs 284.31 crore. Including the proportionate state share of Rs 163.15 crore, the scheme contribution fixed by the Central Government is Rs 447.46 crore. Since FY 2022-23, the centre's share is received in two instalments. As a result, the state initially receives 60 per cent as the first instalment and the remaining as the second instalment. According to this, the state is bound to receive the initial instalment of Rs 170.59 crores this year. Using the initial investment we could allocate a total of Rs 268.48 crore, including the proportionate state's share of Rs 97.89 crore, to the schools for its expenses till November. We submitted a detailed proposal for the first instalment of central allocation of Rs 170.59 crore and the previous year's appropriation papers were duly submitted to the centre on July 4. However, even after two months of submission of the proposal, the centre is not ready to allocate the share for the scheme."

"The centre did not release the second instalment of its share to the state for FY 2021-22, which amounts to Rs 132.90 crore. Following constant pressure by the state government, the central government released the Rs 132.90 crore for 2021-22 on March 30, 2023, a day before the end of the FY 2022-23. The amount was allocated as repayment for cost borne by the state government on its own. For this very reason, the state did not transfer this amount to the single nodal account of the Director of Public Education for disbursal to the grassroots level. However, the central government is not ready to release this year's first instalment of Rs 170.59 crore, stating that the state's share (Rs 76.78 crore) and the amount borne by Kerala Government, totalling Rs 209.68 crore, have not been released to the single nodal account of the Director of Public Education."