1. Efficient use of resources; why is only X percentage of National Education Budget being spent

2. Hypothesis District Education Departments do not have the capacity for effective utilization of budget.

3. Method Analysis of budget of two Districts – 2006-07. District 1 – Families 335000 Schools1428 District 2 –Families: 225000 Schools: 937

4. Budget heads Non Development; Salaries and Non salaries – Stationary, POL, Honorariums; SMC funds Development: Capital – Civil Works Others – Furniture

5. Case Study – 1

6. Budget Utilization – Education Department Development Budget 2% of total budget for district education department 70% of allocated budget utilized during financial year 06 – 07.

7. Common Reasons for Under Utilization of Development Budget Schemes completed in savings – highest %age Schemes dropped being unfeasible land issue, HT Line not available Delay due to slow work progress by contractor; rates revision; death of contractor; conflict with community on land and access Delay in provision of demand notice – issue of Electricity

8. Budget – Comparison Non Development: Rs. 1,112,191,731 Spent: Rs 1,089,107,855 Unutilized: Rs 23,083,876 (2.08%) Non Development: Rs 651,801,535 Spent: Rs 609,149,878 Unutilized: Rs 42,741,657 (6%) District - 1 District - 2

9. Variables for Analysis 1.Repair and maintenance of transport 2.Repair of machinery and equipment; 3.Furniture and fixture 4.Repair of building and structure 5.Traveling allowance 6.Rent of office building 7.SMC

10. Head: Repair and maintenance of transport Budget provision: 440,00 Addition in June : 40,000 Total : 480,000 Spent till May :264,424 In June :80,377 Unspent : 135,199 or 30% Possible Reason: overestimation in February Budget provision: 490,000 Addition in June: NIL Spent till May:70,616 In June:15,540 Unspent: 403,844 or 80% Possible Reason: vehicles not purchased District - 1 District - 2

11. Head: Repair Machinery and equipment Budget provision: 962,000 Addition in June: 257,000 Total :1,218,000 Spent till May :80,400 Spent in June : 674,071 Unspent : 464,529 or 38% Possible Reason: June fever; lack of focus on this head during the year Budget provision: 439,420 Addition in June : NIL Spent till May : 229,304 Spent in June : 20,690 Unspent : 189,507 or 43% Possible Reason: Overestimation District - 1 District - 2

12. Head: Repair of Furniture and fixture Budget provision: 1,967,000 Revised :1,232,493 Spent till May : 107,550 Spent in June : 684,617 Unspent : 440,325 or 36% Possible Reason: June fever; lack of focus on this head during the year Budget provision : 658,430 Revised: Spent till May :574,925 Spent in June :24,827 Unspent : 58,678 or 9% Possible Reason: District - 1 District - 2

13. Head: Repair of Building and structure Budget provision:7,500,000 Revised : Nil Spent till May : Nil Spent in June :7,500,000 Unspent: NIL Budget provision: 7,317,917 Revised : Nil Spent till May : Nil Spent in June :4,038,025 Unspent :3,279,892 District - 1 District - 2

14. Head: Traveling allowance Budget provision : 2,526,239 Revised: 2,515,171 (11,068) Spent till May: 1,163,291 Spent in June: 791,695 Unspent :560,185 Possible Reasons: activities performed but late payment; ------------- Budget provision: 1,776,011 Revised: Spent till May: 1,180,444 Spent in June: 1,110,511 Excess: 514,944 District - 1 District - 2

15. Head: Rent of office building Budget provision: 1,010,000 Revised : 1,028,500 Spent till May: 185,030 Spent in June: 507,114 Unspent: 336,356 Possible Reasons: ------------- Budget provision: 342,000 Revised: Spent till May: 65,998 Spent in June: 70,598 Unspent: 205,404 District - 1 District - 2

16. Head: Internal Merit scholarship Budget provision: 960,000 Revised: Nil Spent till May: 488,740 Spent in June: Nil Unspent: 471,260 Possible Reasons: ------------- Budget provision: 241,277 Revised: Spent till May: Nil Spent in June: 241,277 Unspent: Nil Possible Reasons: ------------- District - 1 District - 2

17. Head: SMC Budget provision:27,290,000 for 935 schools Revised :Nil Spent till May : Nil Disbursed in June: 27,290,000 Spent / Unspent: No information Possible Reasons: ------------- Budget provision:22,040,000 Revised :Nil Spent till May : Nil Disbursed in June: 22,040,000 Spent / Unspent: No information Possible Reasons: ------------- District - 1 District - 2

18. Common Reasons for Under Utilization of Non- Development Budget Issue of sanctioned posts VS recruitment – Highest %age – Recruitment is a political issue; delays in issue of appointment orders Furniture: DDO did not know about the availability of funds till April; delays in approval ; DDO did not know about the source from whom to get approval; no one wanted to be responsible for the purchase of furniture – fear of accountability