25 Feb 2026·Source: The Hindu

4 min

Ritu Singh|Northeast India

Polity & GovernanceEconomySocial IssuesNEWS

Parliamentary Panel Urged to Investigate Underutilisation of Funds in Northeast

MP raises concerns over underutilisation of funds for Northeast development.

Trinamool Congress MP Derek O’Brien has raised concerns about the underutilisation of funds allocated for the Northeast and West Bengal, urging the Parliamentary Standing Committee on Home Affairs to investigate. He highlighted that 41% of the Budget Estimates for 2024-25 and 36% of the allocation for 2025-26 remain unspent in these regions. O’Brien also pointed out the slow progress of the PM Surya Ghar: Muft Bijli Yojana in the northeastern states.

Further exacerbating the issue, O’Brien noted that 25% of sanctioned posts in the Ministry of Development of North Eastern Region (DoNER) are currently vacant. This, he argued, weakens the monitoring of projects and contributes to delays in the disbursal of funds. He also flagged the pending disaster relief dues claimed by the West Bengal government from the central government.

This underutilisation of funds and staffing shortages directly impacts the development initiatives and welfare programs intended for the Northeast and West Bengal. The matter is relevant for UPSC aspirants as it touches upon issues of regional development, resource allocation, and governance, particularly relevant for GS Paper II (Governance, Constitution, Polity, Social Justice and International relations) and GS Paper III (Economy).

Key Facts

Derek O’Brien, a Trinamool Congress MP, raised concerns.

41% of the Budget Estimates for 2024-25 remains unspent.

36% of the allocation for 2025-26 remains unspent.

Limited implementation of the PM Surya Ghar: Muft Bijli Yojana in northeastern states.

25% of sanctioned posts in the Ministry of DoNER are vacant.

West Bengal government has claimed ₹53,696 crore in pending disaster relief dues from the Centre dating back to 2019.

UPSC Exam Angles

GS Paper II: Governance, Constitution, Polity, Social Justice and International relations - Issues related to development and management of social sector/services relating to Health, Education, Human Resources.

GS Paper III: Economy - Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

The news highlights the challenges in regional development and resource allocation, which are important topics for UPSC mains.

Potential question types include analytical questions on the effectiveness of government schemes and the need for improved disaster management strategies.

In Simple Words

Basically, the government sets aside money for the Northeast and West Bengal to help them develop. But a politician is saying that a lot of that money isn't being spent. It's like having a piggy bank full of cash that you never use.

India Angle

In India, this means schools, hospitals, and roads might not get built or improved in those regions. It affects everyone from farmers needing better irrigation to students needing better schools.

For Instance

Imagine your local government allocates money to fix potholes in your neighborhood, but the work never gets done. You'd still be driving on bumpy roads, right? It's the same idea.

This matters because unspent money means less development, fewer opportunities, and a slower pace of progress for people living in those areas.

Money unspent is opportunity lost.

Derek O’Brien, a Trinamool Congress MP, has urged the Parliamentary Standing Committee on Home Affairs to investigate the underutilisation of funds meant for the Northeast and West Bengal. He highlighted that 41% of the Budget Estimates for 2024-25 and 36% of the allocation for 2025-26 remain unspent. He also pointed out the limited implementation of the PM Surya Ghar: Muft Bijli Yojana in northeastern states.

Additionally, he noted that 25% of sanctioned posts in the Ministry of Development of North Eastern Region (DoNER) are vacant, which weakens project monitoring and delays fund disbursal. He also flagged pending dues of disaster relief that the West Bengal government has claimed from the Centre.

Expert Analysis

The recent concerns raised by MP Derek O’Brien regarding the underutilisation of funds in the Northeast and West Bengal highlight several key concepts crucial for understanding India's developmental challenges. The Ministry of Development of North Eastern Region (DoNER), established in 2001, is the nodal agency for the socio-economic development of the eight states of Northeast India. The fact that 25% of sanctioned posts in DoNER are vacant directly impacts its ability to effectively monitor projects and disburse funds, hindering the region's progress. This understaffing undermines the very purpose of DoNER, which is to accelerate development in a region historically lagging behind the rest of the country.

Another critical concept is the PM Surya Ghar: Muft Bijli Yojana, launched to provide free electricity to households by promoting rooftop solar power. The slow progress of this scheme in the northeastern states, as pointed out by O’Brien, indicates implementation challenges. These challenges could range from logistical hurdles in installing solar panels in remote areas to a lack of awareness among the population about the scheme's benefits. The scheme's success is vital for achieving India's renewable energy targets and improving the quality of life in underserved regions.

Finally, the issue of pending disaster relief dues claimed by the West Bengal government touches upon the broader framework of disaster management and resource allocation in India. The central government provides financial assistance to states affected by natural disasters through the State Disaster Response Fund (SDRF) and the National Disaster Response Fund (NDRF). Delays in the release of these funds can severely hamper the state government's ability to provide timely relief and rehabilitation to affected populations. This highlights the need for a more efficient and transparent mechanism for disaster relief fund disbursal.

For UPSC aspirants, understanding these concepts is crucial for both prelims and mains. In prelims, questions can be framed on the objectives and functions of DoNER, the features of the PM Surya Ghar Yojana, and the mechanisms for disaster relief funding. In mains, questions can focus on the challenges in regional development, the effectiveness of government schemes, and the need for improved disaster management strategies.

Visual Insights

Key Statistics on Fund Utilisation in Northeast and Ministry of DoNER

This dashboard highlights the underutilisation of funds in the Northeast and the status of sanctioned posts in the Ministry of DoNER, as reported by Derek O'Brien.

Underutilisation of Budget Estimates (2024-25): 41%
Underutilisation of Budget Estimates (2025-26): 36%
Vacant Posts in Ministry of DoNER: 25%

More Information

Background

The underutilisation of funds allocated to the Northeast and West Bengal is a recurring issue that stems from a complex interplay of factors. The Ministry of Development of North Eastern Region (DoNER) was established in 2001 to address the unique developmental challenges faced by the northeastern states. These challenges include difficult terrain, poor infrastructure, and insurgency, which often hinder the effective implementation of development projects. The PM Surya Ghar: Muft Bijli Yojana is part of India's broader commitment to achieving its renewable energy targets and promoting sustainable development. India has pledged to achieve 500 GW of installed renewable energy capacity by 2030 and reduce its carbon intensity by 45% by 2030, as part of its commitments under the Paris Agreement. The slow progress of the scheme in the Northeast highlights the need for targeted interventions to overcome region-specific challenges. The allocation and disbursal of disaster relief funds are governed by the Disaster Management Act, 2005, which provides the legal framework for disaster management in India. The Act mandates the establishment of the National Disaster Management Authority (NDMA) and the State Disaster Management Authorities (SDMAs) to coordinate disaster response efforts. Delays in the release of funds can undermine the effectiveness of these authorities and exacerbate the impact of disasters on vulnerable populations.

Latest Developments

In recent years, there has been increased focus on improving infrastructure and connectivity in the Northeast through initiatives like the Bharatmala Pariyojana and the North East Special Infrastructure Development Scheme (NESIDS). These initiatives aim to address the infrastructural deficits that have historically hampered the region's development. However, effective implementation and timely completion of projects remain a challenge. The Ministry of Finance has been working on streamlining the process of fund disbursal to states, including those affected by natural disasters. The Fifteenth Finance Commission had recommended reforms in disaster management financing, including the creation of a National Disaster Risk Management Fund (NDRMF). The implementation of these recommendations is expected to improve the efficiency and transparency of disaster relief fund disbursal. Looking ahead, the government has set ambitious targets for renewable energy deployment in the Northeast, including through the PM Surya Ghar Yojana. Achieving these targets will require concerted efforts to address implementation challenges, promote awareness, and ensure the availability of financing and technical expertise.

Practice Questions (MCQs)

1. Consider the following statements regarding the Ministry of Development of North Eastern Region (DoNER): 1. It was established in 2001 to accelerate socio-economic development in the Northeast. 2. All sanctioned posts in DoNER are currently filled to ensure effective project monitoring. Which of the statements given above is/are correct?

A.1 only
B.2 only
C.Both 1 and 2
D.Neither 1 nor 2

Show Answer

Answer: A

Statement 1 is CORRECT: The Ministry of Development of North Eastern Region (DoNER) was established in 2001 to accelerate the socio-economic development of the eight states of Northeast India. Statement 2 is INCORRECT: According to the news, 25% of sanctioned posts in the Ministry of Development of North Eastern Region (DoNER) are currently vacant, which weakens project monitoring and delays fund disbursal.

2. Which of the following statements is NOT correct regarding the PM Surya Ghar: Muft Bijli Yojana? A) It aims to provide free electricity to households by promoting rooftop solar power. B) It is progressing rapidly in all northeastern states. C) It contributes to India's renewable energy targets. D) It aims to improve the quality of life in underserved regions.

Show Answer

Answer: B

Option B is INCORRECT: According to the news, Trinamool Congress MP Derek O’Brien pointed out the slow progress of the PM Surya Ghar: Muft Bijli Yojana in the northeastern states. The other options are correct statements about the scheme's objectives and contributions.

3. In the context of disaster management in India, consider the following: 1. The State Disaster Response Fund (SDRF) is the primary source of funding for disaster relief at the state level. 2. The National Disaster Management Authority (NDMA) is responsible for coordinating disaster response efforts at the national level. Which of the statements given above is/are correct?

A.1 only
B.2 only
C.Both 1 and 2
D.Neither 1 nor 2

Show Answer

Answer: C

Both statements are CORRECT: Statement 1: The State Disaster Response Fund (SDRF) is indeed the primary source of funding for disaster relief at the state level. Statement 2: The National Disaster Management Authority (NDMA) is responsible for coordinating disaster response efforts at the national level, as mandated by the Disaster Management Act, 2005.