The Union Finance Minister has urged state governments to utilise more than ₹1 lakh crore in unspent balances lying in their accounts before requesting additional funds for schemes.
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The FM stressed that these funds allocated for critical development programmes remain idle in State Nodal Agency (SNA) accounts, escrow accounts, and state treasuries as of December 31, 2024.
“I want to show how unspent balances are remaining and how much they total. ₹1 lakh crore is lying unutilised in state accounts. The money is there—just raise the bills, show utilisation, and you will get more,” the FM said.
Large sums unutilised across key schemes
The unspent funds, meant for flagship programmes spanning health, education, housing, and urban development, underscore concerns about the pace of implementation at the state level. The FM emphasised delays in deploying resources under key initiatives:
• Jal Jeevan Mission: ₹30,788 crore remains unutilised despite urgent water supply needs.
• Pradhan Mantri Awas Yojana (PMAY): ₹14,000 crore is yet to be spent, even as housing demand persists.
• Urban Rejuvenation and Employment: ₹12,377 crore allocated for AMRUT (Atal Mission for Rejuvenation and Urban Transformation) is still with the states.
• Swachh Bharat Mission (Urban): ₹12,319 crore remains unused.
• Education and Nutrition: ₹11,516 crore under Samagra Shiksha and ₹5,205 crore under the Mid-Day Meal Program (now Pradhan Mantri Poshan Shakti Nirman) have not been spent.
• Health Programmes: ₹2,988 crore under the flexible pool for health and ₹7,059 crore for medical education remain untapped.
• Rural employment: ₹4,351 crore under the Mahatma Gandhi National Rural Guarantee programme is yet to be utilised.
“These are not small amounts, these are big. We are worried about urban unemployment, about access to clean drinking water, and rural housing. But will the states use the money already in their accounts?” the FM asked.
‘Use it, and we will give more’
Reiterating the government’s commitment to supporting development, the FM assured states that additional funds would be granted as soon as they demonstrate effective utilisation.
“Ask for more, no problem. But first, use what has already been allocated. The moment you utilise these funds, we will release more,” the minister stated.
The statement comes amidst states pushing for higher allocations under centrally sponsored schemes. However, the centre is now pressing for accountability, to ensure that funds meant for public welfare do not remain stagnant.
With crucial development goals at stake, the ball is now in the states’ court to accelerate spending and translate financial outlays into tangible progress on the ground.