Meghalaya News

Meghalaya Government Faces Overspending Challenge, Reports Excess Expenditure of Rs 3,439 Crore

Sentinel Digital Desk

Published:28th Feb, 2024 at 5:33 PM

SHILLONG: The Meghalaya Government has revealed unexpected expenditures exceeding Rs 3,439.41 crore. This shocking breach of the fund approval threshold set by the State Assembly includes seven grants and a single non-grant. The State Auditor and Comptroller General (CAG) brought attention to this issue in a recent financial report for the 2022-23 fiscal year released to the State Assembly.

Key findings within the Appropriation Accounts indicate the main areas of overspend include Power (Rs 382.57 crore), Pensions (Rs 203.62 crore), Sports (Rs 49.03 crore), and a non-grant Public Debt (Rs 2,786.56 crore). An alarming amount of Rs 804.75 crore was also spent without prior allocation, extra funds, or re-allocations across various areas, five grants, and a single non-grant.

The Appropriation Accounts is a report on the Government's spending in comparison to 'Charged' or 'Voted' amounts by the State Assembly from the Consolidated Fund. Despite the overspend, good news came with a reported savings of Rs 532 crore from the Meghalaya Government (2.43% of an estimated Rs 21,926 crore) during the same fiscal year.

Significant savings were noticed in several services including the Administration of Medical and Public Health, Family Welfare Services, Administration of Agriculture and related services, along with the Animal Husbandry and Veterinary Department.

Upon examining the Finance Accounts, end-year receipts amounted to Rs 17,641 crore. This sum includes Rs 9,937 crore from tax revenue, Rs 4,426 crore from aid grants, and Rs 2,796 crore from borrowed funds and other liabilities. The expenses were majorly from revenue expenditure (Rs 14,864 crore) coupled with capital expenditure (Rs 2,742 crore).

The Finance Accounts show what the state government earned and spent in a year. This includes money from revenue and capital accounts, public debt, and public account balances. They are split into two volumes. Volume I has the CAG's report, shorter statements, and 'Notes to Finance Accounts.' Volume II holds more detailed statements and add-ons.