Sri Vijaya Puram, Mar 23: Mr. Bishnu Pada Ray, Member of Parliament, Andaman & Nicobar Islands, met with the Union Finance Minister Mrs. Nirmala Sitharaman to discuss the vital issue of budget allocation for the Union Territory of Andaman & Nicobar Islands. During the meeting, the MP highlighted the financial constraints faced by the UT and urged the Finance Minister to enhance the budget for capital expenditure through a special grant, considering the A&N Islands’s backwardness and geographical remoteness.
During the discussion, the MP brought to the Finance Minister’s notice the serious lapses in fund utilization by the UT Administration. Based on official data from the A&N Administration, approximately Rs. 600 crore has been surrendered over the past five years. Further, Rs. 163 crore earmarked for central schemes remains unutilized and a special financial assistance package of Rs. 279 crore intended for rural road construction has not been obtained and utilized effectively.
The MP also pointed out the misallocation of funds by the UT Administration, which has prioritized non-essential expenditures, including the beautification of LG Raj Niwas, officer residences, procurement of vehicles, installation of ACs and modern furniture, instead of investing in main public infrastructure projects.
Furthermore, the MP raised concerns over the budget proposals prepared by the UT Administration without prior consultation with elected representatives, including the lone MP. The proposals focus primarily on securing funds for recurring expenditures such as salaries and committed liabilities, leading to inadequate provisions for capital expenditure for infrastructure development. As a result, developmental activities, including funding for local bodies such as Panchayati Raj Institutions (PRIs), the Municipal Council and essential infrastructure for roads, water and electricity, remain grossly underfunded.
Highlighting the adverse effects of this misallocation, the MP cited that only 36 km of rural roads have been constructed in the past five years due to inadequate fund allocation to the three-tier PRIs. The MP emphasized that such deficiencies hinder the overall development of the area and impact the quality of life of its residents.
In conclusion, the MP urged the Finance Minister to intervene and ensure the allocation of adequate funds for capital expenditure to the UT of Andaman & Nicobar Islands, from the 2025-26 financial year onwards. A well-structured financial package would help bridge the developmental gap, strengthen infrastructure and uplift the socio-economic conditions of the people in this strategically significant yet underdeveloped region.
Responding to the issue raised, the Finance Minister has assured that the matter will be looked into for consideration.
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