PANAJI: The Comptroller and Auditor General of India (CAG) has taken exception to the persistent savings by state government departments stating that the budget estimates and funds allocated during the years were not effective.
In its report on state finances for the year ended March 31, 2015, submitted to Governor of Goa Mridula Sinha, the CAG said, “The persistent savings indicated that the controls in the departments on the preparation of the budget estimates and allocating funds during the years were not effective.”
The CAG stated that the appropriation audit revealed that in 73 cases, the savings exceeded Rs 2 crore in each case and also by more than 20 per cent of the total provision. Of the 73 cases, in ten cases, savings exceeded Rs 50 crore and also by more than 20 per cent of the total provision.
The mines department leads the list of fund savers with the department spending only Rs 47.98 crore against the total allocation of Rs 412.20 crore and saving 88 per cent, Rs 364.22 crore. The CAG noted in its report, “The saving was attributed to non-filling of vacant posts and less receipts of claims.”
The report further states that during the last five years, between 2010-11 and 2014-15, persistent savings of 15 departments exceeded Rs 5 crore in each case of the respective department.
Taking exception to the substantial surrenders by various departments on account of inflated budget estimates of expenditure, the CAG said, “While preparing the budget estimates, utmost care should be taken to ensure that the budget estimates are neither inflated nor under pitched.”
The CAG further pointed that out of the total provision of Rs 1,379.07 crore, substantial surrenders amounting to Rs 1,069.38 crore were made from 40 grants on account of either non-implementation or slow implementation of schemes and programmes. The substantial surrenders for 2014-15 in 46 cases of the 40 departments exceeded more than 50 per cent in each case of the provisions made in the budget.
However, the CAG in the report has mentioned two cases wherein unnecessary surrenders were made to the accounts department. “In two cases, it was seen that a total amount of Rs 3.40 crore was surrendered though excess expenditure of Rs 1,133.88 crore was incurred under these grants. This indicated lack of proper budgetary control,” the report said. The CAG noted that the departments had not explained the reason to the Director of Accounts until January 2016 for surrender of grants despite excess expenditure against the provision.
Under the General Financial Rules, 2005, departments are required to surrender the grants or portions of the appropriations to the finance department as and when savings are anticipated to enable the finance department to utilise the funds on other schemes. However, at the close of the year 2014-15, no part of the savings, which occurred in seven cases, to the tune of Rs 63.26 crore had been surrendered by the concerned departments.