Comptroller and Auditor General of India (CAG) Punctures Dispur’s Claim

STAFF REPORTER

GUWAHATI: Punching holes in Dispur’s tall claim on economic reform & transparency, the Comptroller and Auditor General of India (CAG) has detected several incidents of financial indiscipline, irregularities, failures & mismanagement that plagued the State’s economy during the 2017-18 fiscal year.

The State Audit Report of the CAG for the year ended on March 31, 2018, highlighted the incidents of financial indiscipline and irregularities. The report was tabled in the Assam Legislative Assembly on Friday during the first day of its ongoing Summer session.

The report said about 32 percent of revenue receipts during 2017-18 came from the State’s own resources while the Central tax transfers and grants-in-aid together contributed 68 percent. The development has revealed the truth that the Assam Government’s fiscal position has largely been influenced by the Central Government’s contributions. During the same financial year (2017-18) there is an increase in receipts of public debt by Rs 4,545 crore (116 percent) and decrease in repayment of public debt by Rs 84 crore (four percent) over the previous year indicating the State’s poor debt management.

On another hand, the CAG is hugely dissatisfied with the State Government’s compliance with various rules, procedures, and directives in terms of submitting utilization certificates (UCs) of funds by various government departments. Altogether 9,370 UCs in respect of grants aggregating Rs 17,935.10 crore paid to 53 departments of the State Government during the period from 2001-02 to 2016-17 are still in arrears. The CAG report said non-submission of UCs is fraught with the risk of misappropriation.

During the year 2017-18, the State Government had incurred an expenditure of Rs 68,586.99 crore against the total grants and appropriations of Rs 99,453.08 crore resulting in overall savings of Rs 30,866.09 crore. The overall savings stood at 31 percent of total grants and appropriations exposing poor financial management by the State.

The CAH also detected that excess expenditure over allocation amounting to Rs 9,323.63 crore pertaining to years from 2005-06 to 2016-17 was yet to be regularized till November 2018. The cases of excess expenditure over grants are serious matters and are in violation of the will of the legislature.

According to the CAG report, while an amount of Rs 360.70 crore meant for 166 public welfare projects was blocked due to non-completion of execution, the State Government did not discharge its statutory liability as it failed to contribute Rs 215.93 crore as the government’s matching share under the National Pension Scheme.

During 2017-18, the State had achieved only one out of three fiscal targets prescribed under the Assam Fiscal Responsibility and Budget Management Act, 2011. As prescribed under the Act, the State could not attain revenue surplus and had a revenue deficit of Rs 1,350 crore.

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