Poor management of finance by Telangana government: CAG

The Comptroller and Auditor General of India (CAG) has found fault with the Telangana government for poor management of finances on various counts during the year ended March 2016.

"The state registered revenue surplus of Rs 238 crore during 2015-16. It is overstated due to mis-classification of grants-in-aid (Rs 151 crore) under capital heads and crediting off-budget borrowings (Rs 3,719 crore) to revenue receipts," the CAG said in its report on 'State Finances'. Fiscal deficit which stood at 3.23 per cent of Gross State Domestic Product (GSDP) is understated (Rs 3,719 crore) due to crediting off budget borrowing to revenue receipts, it said, reports PTI.

"It would have the effect of increasing the ratio of fiscal deficit to GSDP from 3.23 per cent to 3.87 per cent," it said. Many instances of unrealistic budgetary assumptions and weaknesses in expenditure monitoring and control were observed during the year, the report, tabled in the just-concluded Assembly session, said.

"Actual expenditure (Rs 1,04,098 crore) incurred was less than the budget provision (Rs 1,39,360 crore) and savings for the current year stood at Rs 35,262 crore (25 per cent). Out of the savings, Rs 16,269 crore was surrendered on 31 March, 2016," it said.

Several policy initiatives taken up by the government remained either unfulfilled or were partially executed primarily due to non-approval of the scheme guidelines, non-commencement of works for want of administrative sanction and poor project implementation, apart from the non-release of funds, the government auditor said. Excess expenditure of Rs 5,881 crore was incurred during 2015-16 without legislative authorisation.

"Lumpsum provisions (Rs 55 crore) without specific details of expenditure were included in the budget for 201516. "The entire provision was surrendered at the end of the year. There were several instances of budgetary misclassifications on subsidies, subvention from Central Road Fund etc, which indicated deficiencies in budget formulation," it said.

The report also said there were delays in submission of annual accounts by several autonomous bodies which diluted the accountability and defeated the very purpose of preparation of accounts.

Actual expenditure incurred was less than the budget provision, and savings for the current year stood at Rs 35,262 crore.