The Hindu : Kerala / Thiruvananthapuram News : CAG finds lapses in State’s finance management

Online edition of India's National Newspaper
Saturday, Jun 27, 2009
ePaper | Mobile/PDA Version

Kerala

Kerala - Thiruvananthapuram

CAG finds lapses in State’s finance management

Special Correspondent

Says State failed to utilise Central assistance

Revenue deficit up by Rs.1,146.91 crore
Finds irregularities in conduct of noon-meal schemes

THIRUVANANTHAPURAM: The Comptroller and Auditor General of India (CAG) has pointed out several lapses in the State government’s financial management with far-reaching implications, particularly the State government’s failure to utilise Central assistance under various schemes.

Addressing a press conference here while officially releasing the civil and commercial reports to the media, Principal Accountant General of Kerala S. Nagalsamy and other officials said the report of the CAG for the period ending March 31, 2008, pointed out that the revenue deficit of the State went up by Rs.1,146.91 crore during the period ending March 2008, with revenue expenditure increasing by 19.5 per cent as compared to the 16.1 per cent growth in revenue receipts.

Salary, pension, interest payments and subsidy constituted 75 per cent of the non-Plan expenditure, while Plan expenditure was 16.7 per cent of the total expenditure and capital expenditure was 5.4 per cent. The fiscal liabilities of the State were 2.8 times of its revenue receipts and its ratio to the Gross State Domestic Product was 39.1 per cent.

The CAG unearthed several lapses in the conduct of the noon meals scheme and irregularities in the management of rice distribution under the programme. The Civil Supplies Department did not utilise Rs. 10.97 crore out of the Rs. 11. 20 crore released by the Government of India for constructing kitchen-cum-store, replacement of cooking devices and strengthening management, monitoring and evaluation.

In the case of development of handloom industry, the Industry Department did not spend budgeted funds of Rs. 34.23 crore during the 2005-08 period as it failed to avail itself of Central assistance in full. Hantex and Hanveev, the two handloom apex bodies, did not get financial assistance of Rs. 35.40 crore due to their inability to submit project reports based on GOI guidelines.

The audit figures show that there was hardly any serious attempt on the part of ANERT to promote non-conventional energy during the last five years and it could spend only Rs. 7.72 crore on various programmes out of the budget amount of Rs. 14.26 crore. The agency did not get reimbursement of Rs. 4.18 crore from the Centre under the Solar Village Electrification Programme because there was no follow-up. The CAG’s report is severe in its observations about the performance of the Kerala Infrastructure Investment Fund Board. The board could not provide financial assistance for infrastructure projects since its inception in 1999. Large funds procured at higher rates of interests were deposited in treasury saving bank accounts at lower interest rates, causing a loss of Rs. 72.03 crore to the exchequer.

Another audit observation was related to the denial of benefits to destitute inmates of government welfare institutions. The government failed to finalise rules for the Social Security Fund created with Rs. 65 crore.

Printer friendly page
Send this article to Friends by E-Mail

Kerala

News Update

Stories in this Section