Panel calls out environment ministry on poor fund utilisation

The Union Ministry of Environment this week faced criticism from the Parliamentary Standing Committee on Science and Technology, Environment, Forests, and Climate Change for underutilising its budgetary allocations.

- ISSAC JAMES MANAYATH @Chennai

In its report tabled in the Lok Sabha on Tuesday, the committee noted that over 30% of the funds remained unspent with the financial year nearing its end.

The committee observed that while the ministry had used over 96% of its allocated funds in the previous two financial years, in 2024-25, only 54.78% of its revised budget had been spent by January 2025. "The actual expenditure of the Ministry up to 31.1.2025 was ₹1712.48 crore, which is merely 54.78% of the Revised Estimate (RE) allocation," it said. The ministry later informed that it utilised 69% of the funds.

The panel acknowledged the ministry's projected budgetary requirements but stated that "the utilisation of funds by the ministry in 2024-25 is not encouraging enough for the committee to make any positive recommendations in this regard". It recommended that in 2025-26, "the allocation made at the Budget Estimate (BE) stage be utilised to the maximum, so that the ministry is on firm ground to seek additional funds at the supplementary and RE stages".