E-Paper
CAG detects excess disbursement of ₹1337.17 crore in UP, raises objection
Lucknow: The Comptroller and Auditor General (CAG) has taken strong exception to excess disbursement of Rs 1337.17 crore over the budgeted amount that the state
Lucknow: The Comptroller and Auditor General (CAG) has taken strong exception to excess disbursement of Rs 1337.17 crore over the budgeted amount that the state legislature authorised in 2017-2018.
“There was an excess disbursement of Rs 1337.17 crore over the authorisation made by the state legislature under two grants and two appropriations during the financial year 2017-2018,” said CAG Rajiv Mehrishi in his concluding remarks in the CAG report on Appropriation Accounts for 2017-2018. (The BJP government was in power in 2017-2018 in Uttar Pradesh).
Besides the excess disbursement of funds in 2017-2018, the CAG has also pointed out the excess disbursement during the tenure of BSP and Samajwadi Party governments.
“Excess disbursement of Rs 29,648.64 crore under 96 grants and 40 appropriations pertaining to the years between 2005-2006 and 2016-2017 are yet to be regularised by the state legislature. This is in violation of Article 204 and 205 of the Constitution, which provides that no money shall be withdrawn from the Consolidated Fund except under appropriation made by law by the state legislature”, he added.
“This vitiates the system of budgetary and financial control and encourages financial discipline in management of public resources,” further observed Mehrishi in his concluding remarks.
The CAG has also suggested that the state government should rationalise its budget preparation exercise. In its report on the state’s finances, the CAG observed that rationlisation of budget preparation was needed to bridge the persisting gap between the budget estimates and actuals. It noted that the state’s revenue receipts grew by Rs 21,900 crore (nine percent) over 2016-17 receipts, which was Rs 40,622 crore, lower than the budget estimates. Its revenue expenditure increased by Rs 29.632 crore (13 percent) over 2016-17, which was Rs 40895 crore, lower than the budget estimates.
The CAG further observed that the state government’s capital expenditure decreased by Rs 30,701 crore, 44 percent over 2016-2017, which was lower (Rs 14,170 crore) than the budget estimates. It said due to substantial increase in the budget provision of Rs 36,000 crore for waiving crop loan of small and marginal farmers under revenue expenditure, the state government’s capital expenditure came down to only 26 percent (Rs 53258 crore) against Rs 71,878 crore in 2016-2017.
The CAG said the state government’s revenue receipts and revenue expenditure had increased during the period from 2013-2014 to 2017-2018 even after accounting for inflation. “The capital expenditure also increased from 2013-14 to 2016-2017 but during 2017-2018, it recorded a decline of 44 percent as compared to 2016-2017,” the CAG added.
The CAG recommended that the state government should ensure that an internal control mechanism is put in place for timely submission of utilisation certificates in Uttar Pradesh. It said as on March 31, 2018, a total of 153949 utilisation certificates for non-recurring grants of Rs 83,979.44 were pending from 2001-2002 to 2017-18. It said high pendency of UCs was fraught with the risk of misappropriation of fraud.
The CAG observed that the accounts of 54 working PSUs and 34 non-working PSUs were in arrears, ranging from one year to 36 years. The state government had provided budgetary support of Rs 57,780.21 crore to 24 working corporations during the period.
