Centre’s Move Definitely A Setback To Jagan

In what could be a setback to the YCP government in Andhra Pradesh which is facing allegations of misusing funds released by the Centre, the central government is planning to directly transfer funds of various schemes implemented by it into the accounts of the beneficiaries without the involvement of the state governments.

Following complaints of misuse of funds and allegations of corruption by the state governments, the Centre has focused on it and is likely to implement it from April 1 this year.

As part of it, a nodal agency would be set up which would operate through the Reserve Bank of India and transfer funds into the beneficiaries’ accounts in connection with schemes costing Rs 500 crore and more like the crop insurance and family welfare. The Centre has reportedly prepared the guidelines and even sent the same to the concerned departments for their approval and raise objections, if any.

It is learnt that a decision to directly transfer funds to the beneficiaries’ accounts without the involvement of the state governments was taken after the Centre learnt that the latter were renaming the schemes to make them appear as state-sponsored schemes and taking the credit for them.

The Union government also has information that the funds released towards the schemes are being diverted for other purposes by the state governments. To avoid the misuse of funds and get the credit for implementing schemes for the welfare of the poor, the Centre has taken this decision.