Cabinet approves huge post-work cost escalation on 18 sports complexes

MUMBAI: A new chapter was added to the series of arbitrary financial expenditure on government work when the sports department this week proposed a post-work approval for a cost escalation of ₹339.68 crore on 18 sports complexes across the state. The government-approved limit for these was ₹172 crore but they ultimately cost ₹511.68 crore.

The finance department in its blunt remarks has termed this out-of-limit expenditure as ‘financial irregularity’. Following this, the approval for a cost escalation of ₹1,441.38 crore for another 141 sports complexes was put aside by the cabinet, which said a revised procedure for such proposals would be drafted later. The approved government limit for these was ₹946 crores but the cost reached ₹2,387.38 crore, an escalation of ₹1,441.38 crore.

Sports minister Sanjay Bansode of the NCP submitted the proposal at the cabinet meeting for the revised approval pertaining to divisional, district and tehsil sports complexes. In all, for 159 sports complexes, the total government approved limit was ₹1,118 crores but with a cost escalation of ₹1,781.06 crore, the end cost reached ₹2,899.06 crore, which is around three times the approved limit.

The planning department pointed out that the state Sports Development Committee headed by the sports minister had the right to approve proposals that were under the government-approved limit. However, it had approved huge cost escalations and fund allotments beyond the approved limit. “This has created unwanted financial pressure and liabilities, and it falls under financial irregularity,” said the planning department in its remarks. HT tried to reach Bansode but he did not respond to calls and messages.

The disapproval of the finance department regarding the health of the state’s finances and such arbitrary expenses was clear in every sentence. “In the current financial year 2024-25, the fiscal deficit of the state has gone up to ₹1,99,125.87 crore due to the allocations in additional budget and supplementary demands. The revenue deficit has crossed the standard limit of 3% of the state GDP. Against the backdrop of new schemes announced by the state government, fiscal responsibility and revenue deficit, the state exchequer is under a lot of financial pressure. In such a situation, the state government cannot afford the additional liabilities,” said the finance department. Although it did not name any scheme, the term ‘new announcements’ indicates high-expenditure schemes like Laadki Bahin, Annapurna and the youth apprenticeship scheme.

Despite the strict remarks by the finance and planning department, the state cabinet went ahead and approved the cost escalation of ₹339.68 crore for 18 sports complexes. However, it decided to put aside the proposal for cost escalation in the other 141 sports complexes. After the cabinet meeting, a government order was also issued on Friday, which said, ‘The state Sports Development Committee should not consider out-of-limit expenditure without prior approval of the state cabinet. The current procedure for technical, administrative and financial approval will be revised soon through a separate order. After it comes into effect, the proposal for cost escalation of the other 141 sports complexes should be submitted before the state cabinet case by case.’

As per a Government Resolution dated March 23, 2022, sports complexes with a new administrative approval, where construction has not begun, has been fixed at ₹5 crore at the tehsil level, ₹25 crore at the district level and ₹50 crore at the divisional level. For sports complexes that are under construction and need revised administrative approval, the government grant has been fixed at ₹3 crore at the tehsil level, ₹15 crore at the district level and ₹30 crore at the divisional level.