Why Kerala's finance dept may lose its autonomy

Thiruvananthapuram: The Kerala Government is reportedly planning to take away the independent powers of the Finance Department. It is feared that this may set the ground for large-scale corrupt practices with regard to major projects.

The recommendation in this regard was handed over to the Chief Minister by a specially appointed committee headed by ex-IAS officer V Senthil. If the same is implemented, then the Government need not seek the opinion of the Finance Department even in projects implemented with funds from the state exchequer.

Often the Finance Department closely examines all important files and raises objections upon detecting violations of norms.

The officials of the Finance Department examine all files having a financial burden in depth as they are wary of penal actions if found supporting corrupt practices.

The Committee, in its report, recommended the taking away of many powers currently enjoyed by the Finance Department as per the Rules of Business (governance mechanism). It suggested an amendment of the Rules of Business to facilitate the same.

The pretext

The Government sources reason that the move is to enable quick disposal of files to implement projects without delay. The files can be submitted for the approval of the Cabinet in less time.

However, the Finance Minister is yet to record his opinion on the file on the recommendations of the Senthil panel which reached the Finance Department yesterday.

Earlier, the Administrative Reforms Commission, headed by former Chief Minister Achuthanandan, had recommended changes in the governance mechanism to hasten the file movement in the Secretariat. The Government had subsequently appointed the Senthil Committee to study the suggestion in depth and submit a report.

Certain Public Administration Department officials, who were part of the Committee, are behind the recommendation that divests the Finance department of its powers, the sources revealed.

Likely effect

If the recommendation is implemented, then the Finance Department could no longer interfere in the service and pay scale provisions. Also, the health insurance scheme MEDISEP and the salary disbursement software SPARK will be taken away from its control.

The decisions with regard to files concerning various government projects will be taken by the respective department itself. Instead of submitting the files for the nod of the Finance department, the Finance officers of respective departments will record their opinion in the files.

In effect, the Finance Department will be reduced to a sub-department under the Public Administration Department governed by the Chief Minister.

A telling case

The last project for which the Finance Department raised objection was the controversial Safe Kerala Project on AI camera-based surveillance of road traffic.

It had objected to Keltron simultaneously functioning as the project management consultant and also as a contractor. The Transport Minister had then ignored this objection and brought the matter before the consideration of the Cabinet, before obtaining the nod. If the recommendation of the Senthil committee is implemented, then the Finance Department may not even come across such important project files having financial liabilities.