CAG: EXCESS EXPENDITURE IS NOT GOOD

The Comptroller and Auditor General (CAG) has been very critical of the TS government’s financial management and financial indiscipline, suggests audit reports tabled by the government in the Assembly on Thursday. Booking of `3,750 crore, 50 per cent of `7,500 crore rele-ased to Discoms, as equity instead of grant, resulted in overstatement of revenue surplus to that extent.

CAG pointed out that the capital expenditure of `33,371 crore was more than the budget estimates of `29,313 crore and its ratio to total expenditure stood as 28.22 per cent which was higher than the combined average of 19.70 per cent of general category states. The capital expenditure of the state, excluding `7,500 crore transferred to Discoms under UDAY scheme, was `25,871 crore. CAG said during the year, revenue expenditure accounted for 69 per cent of the state’s aggregate expenditure which was in the nature of current consumption, leaving only 31 per cent for investment in infrastructure and asset creation.

CAG commented that sound financial management requires advance planning and accurate estimation of revenues and expenditure. There were instances of excess expenditure and substantial savings with reference to provisions made during the year, exhibiting weakness in expenditure monitoring and control. The overall savings of `31662.69 crore, 18 per cent of the Budget provision, was the result of savings of `52,824.28 crore partially offset by an excess of `21,161.59 crore under various sections. Excess expenditure over the allocations amounting to `6,184 crore pertaining to the years 2014-15 and 2015-16 was yet to be regulated as of December 2017.

The CAG report said: “The cases of excess expenditure over grants are serious breaches and are in violation of the wish of the legislature.” It said `41,384.99 crore was surrendered on the last date of the financial year, March 31, 2017, and it affects the availability of funds in priority areas and desired outcomes. CAG also observed excessive, unnecessary, and inadequate re appropriation of funds.

Several policy initiatives of the state government were either unfulfilled or were partially executed due to non approval of the scheme guidelines/modalities, poor project implementation, apart from non release/short release or non utilisation of budgeted funds. CAG commented that the spirit of the statutory provision was disregarded by not utilising the funds allotted under SC and ST sub plan.