The general scheme is described here How do states get revenue from centre? But often there are arguments about unfair allotments. Even when the money is delivered, there seem to be delays in the distribution and sometimes the money is blocked: Andhra Pradesh Funds Blocked Over Not Filing Necessary Paperwork: Report “Non-submission of UCs could be mainly because of two reasons. Either the central funds were not fully utilised in time or used for other purposes. Given the severe financial crunch faced by the state, 'adjustment' of funds is not uncommon," a senior official in the finance department said.
The above mentioned adjustment seems to be that the state diverted these funds to one location (during Naidu’s time on the advice of his son Lokesh) from which they release in manner that they consider appropriate. The current state government has not changed the procedure yet. This means that the recipients have to go through two bureaucratic agencies with delays and possible bribes at both places. With the change of government at the state level, the centre seems to be releasing more funds https://www.hindustantimes.com/india-news/with-jagan-at-helm-centre-extends-over-rs-4-000-crore-to-andhra-pradesh/story-gt0rRG60LNxDyknR9ZAkXJ.html
From a case that I followed, a women’s welfare Organization has not received funds for two and half years. Funds were blocked in April this year since they were not spent in time. By the time they were released, Lokesh came up with the above scheme and now they have to be released again from a central bureaucracy in the state. And the funds may be frozen again if they are not spent by next March. Meanwhile the Organization borrows at the rate of 2-3 percent for month.
Why do the welfare organisations still do such work? My guess is that some of them do out of genuine concern for others. Some skimp on expenses and try to make profits.
The above mentioned adjustment seems to be that the state diverted these funds to one location (during Naidu’s time on the advice of his son Lokesh) from which they release in manner that they consider appropriate. The current state government has not changed the procedure yet. This means that the recipients have to go through two bureaucratic agencies with delays and possible bribes at both places. With the change of government at the state level, the centre seems to be releasing more funds https://www.hindustantimes.com/india-news/with-jagan-at-helm-centre-extends-over-rs-4-000-crore-to-andhra-pradesh/story-gt0rRG60LNxDyknR9ZAkXJ.html
From a case that I followed, a women’s welfare Organization has not received funds for two and half years. Funds were blocked in April this year since they were not spent in time. By the time they were released, Lokesh came up with the above scheme and now they have to be released again from a central bureaucracy in the state. And the funds may be frozen again if they are not spent by next March. Meanwhile the Organization borrows at the rate of 2-3 percent for month.
Why do the welfare organisations still do such work? My guess is that some of them do out of genuine concern for others. Some skimp on expenses and try to make profits.
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