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CAG slams State govt�s fiscal-end expenditure rush

By STAFF REPORTER
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GUWAHATI, April 8 - The CAG Report has rapped the State government over the practice of incurring expenditures at the fag end of the financial year, which it said indicated poor financial control over expenditure.

�Rush of expenditure in the closing month of the financial year should be avoided... Audit observed that in case of 21 major heads under 20 grants, the departments concerned incurred a total expenditure of Rs 5,999.14 crore (expenditure exceeding Rs 10 crore and also more than 50 per cent of the total expenditure in each case. Out of this, Rs 3,904.94 crore (65.09 per cent) was incurred in March alone,� the report noted.

In five major cases involving the departments of Elections, Urban Development (Municipal Development Department), Cooperation, Animal Husbandry and Industries, the expenditure incurred in the last month, i.e., March, was over 80 per cent � the break-up for the departments being 80.81 per cent, 100 per cent, 100 per cent, 80.15 per cent and 96.67 per cent respectively.

According to the Subsidiary Order 50 of Assam Treasury Rules, rush of expenditure in the closing month of the financial year should be avoided.

�For a sound financial management, uniform pace of expenditure should be maintained. Thus, contrary to the spirit of financial regulation, a substantial amount incurred by the department at the fag end of the year was indicative of poor financial control over expenditure,� the report said.

The CAG further noted that during the year 2016-17, the Government of Assam incurred expenditure of Rs 58,178.31 crore against the total grants and appropriations of Rs 80,069.15 crore resulting in overall savings of Rs 24,890.84 crore.

�The overall savings of Rs 24,890.84 crore stood at 30 per cent of total grants and appropriations. This shows poor financial management by the State,� the report stated.

Further, against the overall savings of Rs 24,890.84 crore, only an amount of Rs 3,941.92 crore (15.84 per cent) was surrendered during 2016-17, of which Rs 3,923.55 crore (99.53 per cent) was surrendered on the last day of the year i.e., March 31, 2017. The Accountant General (A&E), Assam called for reasons for savings/excesses in respect of 1,654 sub-heads/sub sub-heads. Out of 1,654 sub-heads/sub sub-heads, the AG received explanations for variations for 249 sub-heads/sub sub-heads only.

�Of these, explanations for variations in respect of 200 sub-heads/sub sub-heads were complete and they were incorporated in the Appropriation Accounts of 2016-17. Thus, out of 1,654 sub-heads/sub sub-heads, explanation for variations in respect of 1,405 sub-heads/sub sub-heads were not received and in respect of 49 sub-heads/sub sub-heads incomplete information was received (December 2017),� it added.

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CAG slams State govt�s fiscal-end expenditure rush

GUWAHATI, April 8 - The CAG Report has rapped the State government over the practice of incurring expenditures at the fag end of the financial year, which it said indicated poor financial control over expenditure.

�Rush of expenditure in the closing month of the financial year should be avoided... Audit observed that in case of 21 major heads under 20 grants, the departments concerned incurred a total expenditure of Rs 5,999.14 crore (expenditure exceeding Rs 10 crore and also more than 50 per cent of the total expenditure in each case. Out of this, Rs 3,904.94 crore (65.09 per cent) was incurred in March alone,� the report noted.

In five major cases involving the departments of Elections, Urban Development (Municipal Development Department), Cooperation, Animal Husbandry and Industries, the expenditure incurred in the last month, i.e., March, was over 80 per cent � the break-up for the departments being 80.81 per cent, 100 per cent, 100 per cent, 80.15 per cent and 96.67 per cent respectively.

According to the Subsidiary Order 50 of Assam Treasury Rules, rush of expenditure in the closing month of the financial year should be avoided.

�For a sound financial management, uniform pace of expenditure should be maintained. Thus, contrary to the spirit of financial regulation, a substantial amount incurred by the department at the fag end of the year was indicative of poor financial control over expenditure,� the report said.

The CAG further noted that during the year 2016-17, the Government of Assam incurred expenditure of Rs 58,178.31 crore against the total grants and appropriations of Rs 80,069.15 crore resulting in overall savings of Rs 24,890.84 crore.

�The overall savings of Rs 24,890.84 crore stood at 30 per cent of total grants and appropriations. This shows poor financial management by the State,� the report stated.

Further, against the overall savings of Rs 24,890.84 crore, only an amount of Rs 3,941.92 crore (15.84 per cent) was surrendered during 2016-17, of which Rs 3,923.55 crore (99.53 per cent) was surrendered on the last day of the year i.e., March 31, 2017. The Accountant General (A&E), Assam called for reasons for savings/excesses in respect of 1,654 sub-heads/sub sub-heads. Out of 1,654 sub-heads/sub sub-heads, the AG received explanations for variations for 249 sub-heads/sub sub-heads only.

�Of these, explanations for variations in respect of 200 sub-heads/sub sub-heads were complete and they were incorporated in the Appropriation Accounts of 2016-17. Thus, out of 1,654 sub-heads/sub sub-heads, explanation for variations in respect of 1,405 sub-heads/sub sub-heads were not received and in respect of 49 sub-heads/sub sub-heads incomplete information was received (December 2017),� it added.

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