The Parliamentary Standing Committee on Finance identified “deficiencies in Niti Aayog’s plans” relating to finance. File |Photograph Credit score: The Hindu
Parliament’s Standing Committee on Finance cited the Ministry of Planning for not “planning” funds higher. The committee discovered that the division had been allotted larger budgets than ever earlier than previously three fiscal years, regardless of spending lower than half of the funds allotted to the division.
In its newest report submitted to Parliament on Tuesday (17 March 2026), the committee known as for “extra life like” planning and monetary administration by the division. The federal government’s nodal suppose tank, Niti Aayog, operates by the ministry.
The committee additionally discovered Niti Aayog’s “flawed plans” relating to funds.
Continued underutilization
“After a complete overview of the estimates, allocation and utilization of budgetary grants in the course of the monetary 12 months beneath overview, the committee is of the view that the funds allotted by the Ministry of Planning proceed to be underutilized,” the standing committee report mentioned.
The committee identified that the ministry has sought funding of Rs 1,203.38 crore for the following monetary 12 months 2026-27, which is about 22 per cent larger than the Price range Estimate (BE) of Rs 1,006.06 crore for 2025-26.
“Nonetheless, the precise efficiency for FY 2023-24 was Rs 290.81 crore in opposition to BE of Rs 824.39 crore, which is about 35% of BE,” the committee famous. “Equally, the precise efficiency for FY 2024-25 is just Rs 282.60 crore, or about 34% in proportion phrases, as in opposition to BE Rs 837.26 crore.”
The committee famous that the scenario seems to have improved from 2025 to 2026, but additionally mentioned that precise utilization is just barely greater than half of the budgeted quantity.
“With solely two months remaining within the monetary 12 months, the committee is just not very optimistic,” it added.
Price range will increase yearly
The committee mentioned that regardless of this continued underutilization, the division’s BE elevated by 20% and 22%, respectively, within the earlier 12 months.
“In earlier experiences, the Fee has repeatedly emphasised the necessity for extra life like planning and financial administration to make optimum use of obtainable monetary assets,” the report mentioned. “The committee subsequently strongly recommends that the Ministry of Planning make sure that the 2026-27 funds is successfully utilized and keep away from emptying or blocking funds from unresponsive heads.”
“The committee expects the Ministry of Planning to be extra fiscally prudent in assessing future spending projections and targets,” it added.
“Disastrous implementation”
The fee mentioned evaluation of Niti Aayog’s Quarterly Expenditure Plan (QEP) revealed “persistent and important” underutilization. Precise spending in 2023-24 and 2024-25 was about 35% and 33% of complete BE, respectively, based on knowledge within the report.
“This reveals that the plan is flawed, as its implementation on the bottom has been dismal,” the committee mentioned. “Though FY 2025-26 reveals a optimistic development with improved utilization (56.46%), the sharp enhance in expenditure within the fourth quarter stays a priority.”
The report mentioned the anticipated expenditure of Rs 139.17 billion within the fourth quarter of 2025-26 “seems to be a disproportionate haste to deplete funds” and likewise dangers violating the central authorities’s 15 per cent month-to-month spending cap.
“The committee is of the agency view that strict quarterly expenditure proportion norms needs to be adhered to and NITI Aayog ought to conduct an inner overview to synchronize administrative sanctions with QEP,” the report mentioned. “We additionally want to make sure that the primary two quarters are no less than 50% of our monetary targets.”
