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LATEST NEWS UPDATES | CAG nails Bengal Left on food supply

CAG nails Bengal Left on food supply

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published Published on Sep 2, 2011   modified Modified on Sep 2, 2011

-The Telegraph

 

The Comptroller and Auditor General has found gross deficiencies by the food and supplies department when the Left was in power in Bengal.

The CAG report for 2009-2010 says the state food and supplies department could not claim central subsidy worth Rs 133.66 crore as it failed to furnish annual accounts of the public distribution system for the period 2005-2010.

The report also says the finance department, through which the Centre routes subsidies to states, delayed the disbursal to the food and supplies department, which resulted in an “avoidable payment” of Rs 50.18 crore in interest.

Besides, 1.93 lakh poor families in the state were deprived of the benefits of the Antyodaya Anna Yojana (AAY) scheme because the government could not give them AAY ration cards even after identifying them, said Sudarshana Talapatra, the principal accountant general for Bengal.

It was launched in 2000 for identification of the poorest of poor BPL families so that they could be given rice and wheat at a specially subsidised rate of Rs 3 a kilo and Rs 2 a kilo.

The report said various “deficiencies in financial management as well as significant operational deficiencies” which were noticed in audit had affected the economy.

It noted that the food and supplies department could not claim subsidy from the Centre worth Rs 133.66 crore for 2005-2010 because of non-preparation of annual accounts.

Under the decentralised procurement scheme, the Centre releases 95 per cent of the monthly subsidy as and when a state asks for it. The remaining 5 per cent is released when the audited final accounts of the state public distribution system is submitted.

“This 5 per cent has accumulated to Rs 133.66 crore as the state food and supplies department could not claim it for non-submission of annual accounts,” Talapatra said.

The report says the finance department held the food subsidy back for anything between 13 and 365 days between April 2006 and March 2010. This was a period when Bengal went through a severe cash crunch that led it to seek overdrafts from the RBI over and above the ways and means entitlement.

“This delay in release of the central government subsidy to the food and supplies department also resulted in an avoidable payment of Rs 50.18 crore interest,” the report said.

The Telegraph, 2 September, 2011, http://www.telegraphindia.com/1110902/jsp/nation/story_14454855.jsp


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