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LATEST NEWS UPDATES | CAG raps Bihar for poor financial reporting, slack control system by Shoumojit Banerjee

CAG raps Bihar for poor financial reporting, slack control system by Shoumojit Banerjee

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published Published on Apr 1, 2011   modified Modified on Apr 1, 2011
Massive backlog in submission of Detailed Contingent Bills

1,021 cases of misappropriation, defalcation, theft amounting to Rs. 407.97 crore as of March 2010

Large number of unfurnished utilisation certificates for grants to the tune of Rs.4,527.77 crore

The pendency of Detailed Contingent (DC) Bills, once a subject of a free-for-all in the Bihar Assembly last year, has popped up again in the Comptroller and Auditor-General's report tabled in the Assembly on Wednesday.

The audit report castigated the government's slack budgetary control system and its poor financial reporting, which resulted in a massive backlog in the submission of utilisation certificates and DC Bills.

The report noted that from 2002-03 to 2008-09, DC bills in respect of 50,988 Abstract Contingent (AC) Bills drawn for Rs.11, 854 crore had not yet been submitted “despite repeated audit objections.”

The CAG report on Bihar's finances revealed that of the Rs.14,272 crore drawn on 58,423 Abstract Contingent bills, a mere 7,435 DC bills amounting to Rs.2,418 crore had been submitted to the Accountant-General till March 2009.

Norms flouted

Procedural norms mandate DC bills to be submitted within six months against the drawal of AC bills.

The government's compliance with various rules, procedures and directives was not satisfactory, said the audit report while referring to the large number of unfurnished utilisation certificates for grants (UCs) totalling 21,114 UCs aggregating Rs.4,527.77 crore.

Audit scrutiny further revealed 1,021 cases of misappropriation, defalcation, theft and loss amounting to Rs.407.97 crore on which final action was still pending as of March 2010.

According to the report, the government provided grants-in-aid to various bodies and institutions without ensuring proper utilisation for the intended purposes.

While there was cent per cent surrender in 69 schemes amounting to Rs.522 crore, controlling officers have yet to recover anticipated savings amounting to a whopping Rs.3,182.17 crore — which is roughly 54 per cent of the total savings of Rs.5,860 crore.

This amount could well have been utilised for their scheduled purposes as well as for other development activities in the State, the report pointed out.

The Hindu, 1 April, 2011, http://www.hindu.com/2011/04/01/stories/2011040163700700.htm


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