GUIDELINES REGARDING TRANSFERRED SCHEMES CAPTIONED NATIONAL SOCIAL ASSISTANCE PROGRAMME(NSAP) AND ANNAPURNA SCHEME TO THE STATES/UTs

 

           The Ministry of Rural Development has, inter alia, been administering the Annapurna Scheme and the  National Social Assistance Programme(NSAP) consisting of the National Old Age Pension Scheme(NOAPS) and the National Family Benefit Scheme(NFBS).  As a result of a recent review of the Centrally Sponsored Schemes by the Planning Commission, in consultation with the Ministry of Rural Development, it has been decided to transfer the NSAP and the Annapurna to the State Plan from the year, 2002-03.   It is expected that the transfer of these Schemes will provide the requisite flexibility to the States/UTs in the choice and the implementation of the Schemes.  The funds for the operation of the Schemes will be released as Additional Central Assistance(ACA) to the States/UTs by the Ministry of Finance.

 

Allocation of Funds

 

2.        The total ACA to be provided to the States/UTs for the NSAP and Annapurna Scheme would be decided by the Planning Commission;  the Statewise allocation of ACA would be made by the Ministry of Rural Development and Planning Commission.  The ACA provided to the States/UTs under NSAP and Annapurna could be utilized by the States/UTs  on Welfare Schemes of Old Age Pension, Family Benefit or free foodgrains to the aged by taking up one or two or all of the three or in any other combination in accordance with their own priorities and needs.

 

3.             In order to ensure that a minimum level of expenditure is incurred on the Welfare Schemes, it has been decided that the Additional Central Assistance to the States must constitute a genuine additionality over and above the normal allocation of the State for such Welfare Schemes as reflected in the State’s budget, both under Plan and Non-Plan. The States/UTs must, therefore, provide a Mandatory Minimum Provision(MMP) for these Schemes under their own budget. This Mandatory Minimum Provision would be calculated as equivalent to the States’ Budget Provision or actual expenditure, whichever is higher, for these Schemes during the year 2000-01,  and the ACA allocation for the year concerned. It is expected that the States/UTs would increase their own Budget provisions for the Welfare Schemes over and above the MMP, depending upon their resource position.

 

 4.       The details of budget allocation and expenditure incurred by the States/UTs during 2000-01 for providing old age pension, free foodgrains to the aged and family benefit will be compiled by the Ministry of Rural Development to have the benchmark figure of MMP.

 

 

 5.       The States/UTs shall intimate the distribution of the total MMP over various schemes adopted by them for the welfare of the BPL families to the Ministry of Rural Development within a month after the State’s allocation of ACA for the transferred Schemes is conveyed to the States/UTs. The Ministry of Rural Development will monitor the expenditure of the ACA and MMP during the year.

 

Release of Funds

 

6.    The releases of the Additional Central Assistance(ACA) to the States/UTs will be made automatically by the Ministry of Finance in equal Instalments on a monthly basis until December of the financial year.   However, the release of ACA for the last Quarter of the financial year i.e.for the three months of January, February and March would depend upon the reporting of satisfactory progress of implementation of the Schemes and utilization of funds  by the States/UTs.   At least 50% of the ACA funds released must be utilised  by the States and UTs by 31st December of the financial year so that the ACA for the remaining three months of that financial year, i.e. January, February and March could be released.  Before release of funds for the last Quarter, the State/UTs shall also furnish Utilisation Certificate for the funds released during the previous financial year to the Ministry of Rural Development.  The utilisation position as on this cut-off date must be reported by the States/UTs by 15th January to the Ministry of Rural Development, who after examination of these reports, will make suitable recommendation to the Ministry of Finance regarding the release of ACA for the three months of the last Quarter. 

 

7.         The ACA funds released under the Scheme must be passed on to the Implementing Agencies within a month after the release of funds by the Centre.

 

Monitoring

 

8.         The States/UTs will have the flexibility  to implement the Schemes through any  State Government Department.  They will, however, designate a Nodal Secretary at the State Level to report the progress of implementation by co-ordinating with different departments concerned with the implementation of the Schemes.  The progress of implementation of the Schemes is to be reported through Quarterly Reports in a given monitoring format by 15th of the month of the  following  Quarter.  Non-reporting of the physical and financial progress reports will be construed as lack of progress and, therefore, may result in the non-release of ACA for the last Quarter of the financial year.  Since the ACA allocations for the Schemes lapse at the end of the financial year, these Instalments cannot be released during the next financial year, even if a State Government reports progress subsequent to the cut-off dates, fixed as above.

 

9.         The States may review, if necessary, the functioning of the existing Committees at the State and District Levels to ensure better results and co-ordination. The nomination of the representatives of the Ministry of Rural Development and the Planning Commission in the State Level Committees may also be considered by the States/UTs.  

 

Involvement of the Panchayati Raj Institutions

 

10.       Panchayati Raj Institutions at Panchayat and District level may be involved in the implementation of the Schemes.  The Gram Panchayats/Municipalities will continue to play an active role in the identification of the beneficiaries under the three Schemes. Apart from the disbursal of benefits through the Accounts of the beneficiary in Banks or in Post Office Savings Banks or through Postal Money Order, the assistance under the Schemes may also be disbursed in public meetings such as Gram Sabha Meetings in rural areas and by Neighbourhood/Mohalla Committees in urban areas.  The Panchayats and Municipalities may also be involved in monitoring and in following up delays in sanctions and disbursement.