Andhra Pradesh spent Rs.42,681 crore on the economic sector, comprising energy, water resources, agriculture, roads & buildings, and infrastructure and investment departments, during 2014-15.
Of this, the lion’s share of expenditure was incurred by the Energy Department — Rs.14,476 crore, followed by Water Resources Department — Rs.9,378 crore. Agriculture Department spent Rs.9,258 crore, and R&B and I&I Departments spent Rs.5,969 crore.
The CAG, which audited six selected Pay and Accounts Offices whose role is to enforce financial discipline in government expenditure through adherence to financial rules, budgetary controls, and by ensuring that expenditure is incurred in accordance with sanctions of the legislature, listed certain lapses of excess payments.
Though one of the important functions of the PAOs is to see that no payment is made in excess of the funds released, some PAOs that were test-checked paid bills amounting to Rs.171.39 crore in excess of the Letters of Credit issued by the Heads of Departments.
The PAOs accepted Bank Guarantees instead of Demand Drafts for works costing less than Rs.50 lakh in 112 works, contrary to government orders.
In another instance, excess amount of value added tax to the tune of Rs.9.32 crore was reimbursed in 11 contracts pertaining to Krishna Delta modernisation works giving undue benefit to the contracting agency.
It also pointed out that in package No.17 of Handri Neeva Phase II, additional payment of Rs.5.19 crore for controlled blasting was allowed though canal length post tender was reduced, resulting in saving of Rs.8.24 crore.
This again resulted in undue benefit to the agency and extra expenditure to the department.
