The Hindu : Budget control mechanisms absent, says CAG

Online edition of India's National Newspaper
Sunday, Feb 15, 2004

Karnataka

Karnataka

Budget control mechanisms absent, says CAG

By Our Special Correspondent

BANGALORE, FEB. 14. The report of the Comptroller and Auditor-General of India (zilla panchayats) for the year ended March 31, 2002, has criticised the State Government for lack of budget control mechanisms and for incurring an expenditure of Rs. 77.90 crore without budgetary provision. The report deplored the poor quality of functioning of the zilla panchayats in the State.

The report, which was tabled in the Legislative Assembly, said expenditure of Rs. 531.12 crore in excess of the budgetary provision was incurred on some heads of accounts, and expenditure of Rs. 663.95 crore was lower than the projections under certain heads of accounts. The unutilised balances of the zilla panchayats rose to Rs. 1,288 crore by the end of March 2002 due to release of excess grants by the Government, non-payment of taxes, and other dues to zilla panchayats, and the failure to transfer funds to gram panchayats.

About rural housing, the report said the Central assistance of Rs. 53.80 crore was lost because the zilla panchayats failed to utilise funds made available. Repayment of loan by the beneficiaries of Ashraya housing scheme was tardy causing an additional burden of Rs. 44.35 crore on the State exchequer. Investments to the tune of Rs. 1.73 crore made under the Ashraya housing scheme on acquisition of land for forming sites did not serve the purpose as the sites were not developed and those developed were not distributed.

A large section of beneficiaries were deprived of clean environment and hygienic habitation as up to 30 per cent of the houses constructed or upgraded did not have sanitation facilities and smokeless stoves.

About the Swarnajayanti Gram Swarozgar Yojana, the CAG report revealed that 52 per cent of the expenditure was either diverted or not utilised in a proper manner. Funding of the programme was inadequate as only Rs. 140.58 crore was released against Rs. 546.36 crore required. The Central assistance of Rs. 49.32 crore was lost as the zilla panchayats were unable to utilise funds to the extent envisaged.

The district plans did not reflect the real needs of the taluk and gram panchayats and Rs. 10.83 crore was released before the approval of action plans. The report said programme implementation, material management, and human resource management in selected zilla panchayats was deficient in many ways.

Material management was flawed because of irregular stocktaking, absence of detailed accounts for materials at site, and irregular expenditure of Rs. 1.10 crore in procurement. There were instances of loss of Central assistance (Rs. 18.92 crore), delay in transfer of funds (Rs. 1.30 crore), diversion of funds (Rs. 0.35 crore), and inadmissible expenditure (Rs. 1.10 crore) under the Employment Assurance Scheme, the report said.

On audit, it said work on three irrigation projects remained incomplete, rendering investment of Rs. 53 lakh made on them idle. Three defluoridation plants installed by a zilla panchayat Engineering Division at an investment of Rs. 59 lakh remained non-functional for five years. The report disclosed improper maintenance of store accounts by zilla panchayat divisions. In three zilla panchayat engineering divisions, prescribed procedures were bypassed leading to misappropriation of stores worth Rs. 1.18 crore.

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