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LATEST NEWS UPDATES | CAG raps Bihar govt for 'fiscal indiscipline' </title>
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PATNA: The Bihar government, which keeps crying for more central assistance, could not spend Rs 1472.61 crore in 2012 and surrendered 100 per cent funds in 192 schemes, depriving the beneficiaries of the benefits, according to the..."/>
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PATNA: The Bihar government, which keeps crying for more central assistance, could not spend Rs 1472.61 crore in 2012 and surrendered 100 per cent funds in 192 schemes, depriving the beneficiaries of the benefits, according to the..." />
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<h1 class="cat-box-title">CAG raps Bihar govt for 'fiscal indiscipline'</h1>
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Published on</span><span class="text-date"> Apr 3, 2013</span>
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<div align="justify">-The Times of India</div><p align="justify"><br /><em>PATNA: </em>The Bihar government, which keeps crying for more central assistance, could not spend Rs 1472.61 crore in 2012 and surrendered 100 per cent funds in 192 schemes, depriving the beneficiaries of the benefits, according to the CAG report for 2011-12 presented in state assembly on Tuesday. Central funds for several schemes also remained unutilized, it said.</p><p align="justify">The CAG also regretted the lack of objective planning in utilization of funds drawn on Abstract Contingency (AC) bills totalling Rs 16031 crore and also expressed concern over Detailed Contingency (DC) Bills amounting to Rs 18797.90 crore which remained pending or submission to accountant general (accounts and expenditure) till August 31, 2012, against 92,168 AC bill drawals to the tune of Rs. 30,305.47 crore. A case on AC/DC bills controversy is pending in the Supreme Court.</p><p align="justify">"The fact remains that drawal of funds in the month of March without actual expenditure is indicative of fiscal indiscipline," the report said, pointing out that the finance department had told Bihar's principal accountant general that drawal of funds in March was to ensure regular flow of funds for construction purposes which peaks up during January-June period. The CAG took objection to the drawal of funds through AC bills route to make payments on the items under Plan expenditure.</p><p align="justify">The funds under AC bills rules were drawn without immediate requirement. The funds of Rs 17,32 crore for chief minister's merit scholarship scheme remained unutilized. The government told AG office in August, 2012 that the money would be carried forward next year. "The reply was not acceptable as Rule 177 of the Bihar Treasury Code, 2011 allows the executive to spend the money within authorized appropriation during the same financial year.</p><p align="justify">The state government surrendered Rs 4251.53 crore out of total Rs 5838.96 crore in 22 grants. "These funds were surrendered on account of either non-implementation or slow implementation of schemes and programmes," the report stated.</p><p align="justify">Projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Kosi irrigation scheme could not be taken up due to surrender of funds. Bihar government had constituted Bihar Kosi flood recovery project and sanctioned Rs 575.19 crore, but Rs 467.81 crore remained unutilized.</p><p align="justify">There had been cases of defalcation, misappropriation, loss, fraudulent and excess payment and theft involving Rs 3.58 crore. "Appropriate steps for the safety of government property, as prescribed in the rules, had not been taken by the departments concerned. The indifferent approach of the departments in finalization of these cases had not only caused losses to the state exchequer but also failure to take timely action against the guilty persons," the CAG said.</p><p align="justify">The state government had withdrawn Rs 16,033.01 crore on AC bills between 2009-12 of which the plan head drawals accounted for Rs 12,332.64 crore which indicated that object level planning was absent as items of expenditure were known while drawing the amount, the report said.</p><p align="justify">The CAG further noted that no expenditure was incurred against AC drawals of Rs 171.64 crore meant to upgrade primary health centres (PHCs) and subdivisional hospitals during 2009-11 and was provided to Bihar Medical Services and Infrastructure Corporation Ltd (BMSIC) and the entire amount remained unutilized till August 2012.</p><p align="justify">Pointing to other irregularities in drawal of funds under AC bills, it observed that considerable portion of funds drawn through this route was lying either with the drawing and disbursement officers (DDO) or with the executive agencies even after the lapse of the financial year during which the money was drawn and had been parked in various personal deposit accounts and bank accounts.</p><p align="justify">At the same time, the CAG pointed out some positives in the state financial health in 2011-12 which, it said, was stable in spite of slowdown in the Indian economy. There was considerable increase in revenue receipts due to increase in its own tax revenue by 27.78 per cent and higher tax devolution from the Centre by 16.5 per cent. As a result of growth in revenue receipts, the state government was able to spend more on account of non-plan and plan heads in 2011-12, the CAG report said.</p><p align="justify"><em>Opposition demands CBI probe</em></p><p align="justify">Leader of opposition in the assembly, Abdul Bari Siddiqui, demanded a BCI probe into the AC/DC bills scam as pointed out in the CAG report. He said the opposition had been demanding investigations into the irregularities of pending AC/DC bills for the last few years. Now, the CAG, too, has confirmed that the AC/DC bills amounting to Rs 35000 crore were still pending.</p><p align="justify">The chairman of the Public Accounts Committee and RJD legislator from Darbhanga, Lalit Yadav, said the committee would make a detailed probe into the CAG findings. Findings on fraudulent drawal of funds and its misappropriation would be investigated by the committee and stern action would be recommended against the defaulters.</p><p align="justify">According to the report, 192 schemes could not be launched and 380 schemes remained incomplete due to financial indiscipline.</p>
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<br><a href="http://timesofindia.indiatimes.com/city/patna/CAG-raps-Bihar-govt-for-fiscal-indiscipline/articleshow/19354596.cms" class="re" target="_blank">The Times of India, 3 April, 2013, http://timesofindia.indiatimes.com/city/patna/CAG-raps-Bihar-govt-for-fiscal-indiscipline/articleshow/19354596.cms</a><div class="clear"></div>
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<h1 class="cat-box-title">CAG raps Bihar govt for 'fiscal indiscipline'</h1>
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Published on</span><span class="text-date"> Apr 3, 2013</span>
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<div align="justify">-The Times of India</div><p align="justify"><br /><em>PATNA: </em>The Bihar government, which keeps crying for more central assistance, could not spend Rs 1472.61 crore in 2012 and surrendered 100 per cent funds in 192 schemes, depriving the beneficiaries of the benefits, according to the CAG report for 2011-12 presented in state assembly on Tuesday. Central funds for several schemes also remained unutilized, it said.</p><p align="justify">The CAG also regretted the lack of objective planning in utilization of funds drawn on Abstract Contingency (AC) bills totalling Rs 16031 crore and also expressed concern over Detailed Contingency (DC) Bills amounting to Rs 18797.90 crore which remained pending or submission to accountant general (accounts and expenditure) till August 31, 2012, against 92,168 AC bill drawals to the tune of Rs. 30,305.47 crore. A case on AC/DC bills controversy is pending in the Supreme Court.</p><p align="justify">"The fact remains that drawal of funds in the month of March without actual expenditure is indicative of fiscal indiscipline," the report said, pointing out that the finance department had told Bihar's principal accountant general that drawal of funds in March was to ensure regular flow of funds for construction purposes which peaks up during January-June period. The CAG took objection to the drawal of funds through AC bills route to make payments on the items under Plan expenditure.</p><p align="justify">The funds under AC bills rules were drawn without immediate requirement. The funds of Rs 17,32 crore for chief minister's merit scholarship scheme remained unutilized. The government told AG office in August, 2012 that the money would be carried forward next year. "The reply was not acceptable as Rule 177 of the Bihar Treasury Code, 2011 allows the executive to spend the money within authorized appropriation during the same financial year.</p><p align="justify">The state government surrendered Rs 4251.53 crore out of total Rs 5838.96 crore in 22 grants. "These funds were surrendered on account of either non-implementation or slow implementation of schemes and programmes," the report stated.</p><p align="justify">Projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Kosi irrigation scheme could not be taken up due to surrender of funds. Bihar government had constituted Bihar Kosi flood recovery project and sanctioned Rs 575.19 crore, but Rs 467.81 crore remained unutilized.</p><p align="justify">There had been cases of defalcation, misappropriation, loss, fraudulent and excess payment and theft involving Rs 3.58 crore. "Appropriate steps for the safety of government property, as prescribed in the rules, had not been taken by the departments concerned. The indifferent approach of the departments in finalization of these cases had not only caused losses to the state exchequer but also failure to take timely action against the guilty persons," the CAG said.</p><p align="justify">The state government had withdrawn Rs 16,033.01 crore on AC bills between 2009-12 of which the plan head drawals accounted for Rs 12,332.64 crore which indicated that object level planning was absent as items of expenditure were known while drawing the amount, the report said.</p><p align="justify">The CAG further noted that no expenditure was incurred against AC drawals of Rs 171.64 crore meant to upgrade primary health centres (PHCs) and subdivisional hospitals during 2009-11 and was provided to Bihar Medical Services and Infrastructure Corporation Ltd (BMSIC) and the entire amount remained unutilized till August 2012.</p><p align="justify">Pointing to other irregularities in drawal of funds under AC bills, it observed that considerable portion of funds drawn through this route was lying either with the drawing and disbursement officers (DDO) or with the executive agencies even after the lapse of the financial year during which the money was drawn and had been parked in various personal deposit accounts and bank accounts.</p><p align="justify">At the same time, the CAG pointed out some positives in the state financial health in 2011-12 which, it said, was stable in spite of slowdown in the Indian economy. There was considerable increase in revenue receipts due to increase in its own tax revenue by 27.78 per cent and higher tax devolution from the Centre by 16.5 per cent. As a result of growth in revenue receipts, the state government was able to spend more on account of non-plan and plan heads in 2011-12, the CAG report said.</p><p align="justify"><em>Opposition demands CBI probe</em></p><p align="justify">Leader of opposition in the assembly, Abdul Bari Siddiqui, demanded a BCI probe into the AC/DC bills scam as pointed out in the CAG report. He said the opposition had been demanding investigations into the irregularities of pending AC/DC bills for the last few years. Now, the CAG, too, has confirmed that the AC/DC bills amounting to Rs 35000 crore were still pending.</p><p align="justify">The chairman of the Public Accounts Committee and RJD legislator from Darbhanga, Lalit Yadav, said the committee would make a detailed probe into the CAG findings. Findings on fraudulent drawal of funds and its misappropriation would be investigated by the committee and stern action would be recommended against the defaulters.</p><p align="justify">According to the report, 192 schemes could not be launched and 380 schemes remained incomplete due to financial indiscipline.</p>
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<br><a href="http://timesofindia.indiatimes.com/city/patna/CAG-raps-Bihar-govt-for-fiscal-indiscipline/articleshow/19354596.cms" class="re" target="_blank">The Times of India, 3 April, 2013, http://timesofindia.indiatimes.com/city/patna/CAG-raps-Bihar-govt-for-fiscal-indiscipline/articleshow/19354596.cms</a><div class="clear"></div>
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<h1 class="cat-box-title">CAG raps Bihar govt for 'fiscal indiscipline'</h1>
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Published on</span><span class="text-date"> Apr 3, 2013</span>
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<div align="justify">-The Times of India</div><p align="justify"><br /><em>PATNA: </em>The Bihar government, which keeps crying for more central assistance, could not spend Rs 1472.61 crore in 2012 and surrendered 100 per cent funds in 192 schemes, depriving the beneficiaries of the benefits, according to the CAG report for 2011-12 presented in state assembly on Tuesday. Central funds for several schemes also remained unutilized, it said.</p><p align="justify">The CAG also regretted the lack of objective planning in utilization of funds drawn on Abstract Contingency (AC) bills totalling Rs 16031 crore and also expressed concern over Detailed Contingency (DC) Bills amounting to Rs 18797.90 crore which remained pending or submission to accountant general (accounts and expenditure) till August 31, 2012, against 92,168 AC bill drawals to the tune of Rs. 30,305.47 crore. A case on AC/DC bills controversy is pending in the Supreme Court.</p><p align="justify">"The fact remains that drawal of funds in the month of March without actual expenditure is indicative of fiscal indiscipline," the report said, pointing out that the finance department had told Bihar's principal accountant general that drawal of funds in March was to ensure regular flow of funds for construction purposes which peaks up during January-June period. The CAG took objection to the drawal of funds through AC bills route to make payments on the items under Plan expenditure.</p><p align="justify">The funds under AC bills rules were drawn without immediate requirement. The funds of Rs 17,32 crore for chief minister's merit scholarship scheme remained unutilized. The government told AG office in August, 2012 that the money would be carried forward next year. "The reply was not acceptable as Rule 177 of the Bihar Treasury Code, 2011 allows the executive to spend the money within authorized appropriation during the same financial year.</p><p align="justify">The state government surrendered Rs 4251.53 crore out of total Rs 5838.96 crore in 22 grants. "These funds were surrendered on account of either non-implementation or slow implementation of schemes and programmes," the report stated.</p><p align="justify">Projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Kosi irrigation scheme could not be taken up due to surrender of funds. Bihar government had constituted Bihar Kosi flood recovery project and sanctioned Rs 575.19 crore, but Rs 467.81 crore remained unutilized.</p><p align="justify">There had been cases of defalcation, misappropriation, loss, fraudulent and excess payment and theft involving Rs 3.58 crore. "Appropriate steps for the safety of government property, as prescribed in the rules, had not been taken by the departments concerned. The indifferent approach of the departments in finalization of these cases had not only caused losses to the state exchequer but also failure to take timely action against the guilty persons," the CAG said.</p><p align="justify">The state government had withdrawn Rs 16,033.01 crore on AC bills between 2009-12 of which the plan head drawals accounted for Rs 12,332.64 crore which indicated that object level planning was absent as items of expenditure were known while drawing the amount, the report said.</p><p align="justify">The CAG further noted that no expenditure was incurred against AC drawals of Rs 171.64 crore meant to upgrade primary health centres (PHCs) and subdivisional hospitals during 2009-11 and was provided to Bihar Medical Services and Infrastructure Corporation Ltd (BMSIC) and the entire amount remained unutilized till August 2012.</p><p align="justify">Pointing to other irregularities in drawal of funds under AC bills, it observed that considerable portion of funds drawn through this route was lying either with the drawing and disbursement officers (DDO) or with the executive agencies even after the lapse of the financial year during which the money was drawn and had been parked in various personal deposit accounts and bank accounts.</p><p align="justify">At the same time, the CAG pointed out some positives in the state financial health in 2011-12 which, it said, was stable in spite of slowdown in the Indian economy. There was considerable increase in revenue receipts due to increase in its own tax revenue by 27.78 per cent and higher tax devolution from the Centre by 16.5 per cent. As a result of growth in revenue receipts, the state government was able to spend more on account of non-plan and plan heads in 2011-12, the CAG report said.</p><p align="justify"><em>Opposition demands CBI probe</em></p><p align="justify">Leader of opposition in the assembly, Abdul Bari Siddiqui, demanded a BCI probe into the AC/DC bills scam as pointed out in the CAG report. He said the opposition had been demanding investigations into the irregularities of pending AC/DC bills for the last few years. Now, the CAG, too, has confirmed that the AC/DC bills amounting to Rs 35000 crore were still pending.</p><p align="justify">The chairman of the Public Accounts Committee and RJD legislator from Darbhanga, Lalit Yadav, said the committee would make a detailed probe into the CAG findings. Findings on fraudulent drawal of funds and its misappropriation would be investigated by the committee and stern action would be recommended against the defaulters.</p><p align="justify">According to the report, 192 schemes could not be launched and 380 schemes remained incomplete due to financial indiscipline.</p>
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<br><a href="http://timesofindia.indiatimes.com/city/patna/CAG-raps-Bihar-govt-for-fiscal-indiscipline/articleshow/19354596.cms" class="re" target="_blank">The Times of India, 3 April, 2013, http://timesofindia.indiatimes.com/city/patna/CAG-raps-Bihar-govt-for-fiscal-indiscipline/articleshow/19354596.cms</a><div class="clear"></div>
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PATNA: The Bihar government, which keeps crying for more central assistance, could not spend Rs 1472.61 crore in 2012 and surrendered 100 per cent funds in 192 schemes, depriving the beneficiaries of the benefits, according to the CAG report for 2011-12 presented in state assembly on Tuesday. Central funds for several schemes also remained unutilized, it said.
The CAG also regretted the lack of objective planning in utilization of funds drawn on Abstract Contingency (AC) bills totalling Rs 16031 crore and also expressed concern over Detailed Contingency (DC) Bills amounting to Rs 18797.90 crore which remained pending or submission to accountant general (accounts and expenditure) till August 31, 2012, against 92,168 AC bill drawals to the tune of Rs. 30,305.47 crore. A case on AC/DC bills controversy is pending in the Supreme Court.
"The fact remains that drawal of funds in the month of March without actual expenditure is indicative of fiscal indiscipline," the report said, pointing out that the finance department had told Bihar's principal accountant general that drawal of funds in March was to ensure regular flow of funds for construction purposes which peaks up during January-June period. The CAG took objection to the drawal of funds through AC bills route to make payments on the items under Plan expenditure.
The funds under AC bills rules were drawn without immediate requirement. The funds of Rs 17,32 crore for chief minister's merit scholarship scheme remained unutilized. The government told AG office in August, 2012 that the money would be carried forward next year. "The reply was not acceptable as Rule 177 of the Bihar Treasury Code, 2011 allows the executive to spend the money within authorized appropriation during the same financial year.
The state government surrendered Rs 4251.53 crore out of total Rs 5838.96 crore in 22 grants. "These funds were surrendered on account of either non-implementation or slow implementation of schemes and programmes," the report stated.
Projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Kosi irrigation scheme could not be taken up due to surrender of funds. Bihar government had constituted Bihar Kosi flood recovery project and sanctioned Rs 575.19 crore, but Rs 467.81 crore remained unutilized.
There had been cases of defalcation, misappropriation, loss, fraudulent and excess payment and theft involving Rs 3.58 crore. "Appropriate steps for the safety of government property, as prescribed in the rules, had not been taken by the departments concerned. The indifferent approach of the departments in finalization of these cases had not only caused losses to the state exchequer but also failure to take timely action against the guilty persons," the CAG said.
The state government had withdrawn Rs 16,033.01 crore on AC bills between 2009-12 of which the plan head drawals accounted for Rs 12,332.64 crore which indicated that object level planning was absent as items of expenditure were known while drawing the amount, the report said.
The CAG further noted that no expenditure was incurred against AC drawals of Rs 171.64 crore meant to upgrade primary health centres (PHCs) and subdivisional hospitals during 2009-11 and was provided to Bihar Medical Services and Infrastructure Corporation Ltd (BMSIC) and the entire amount remained unutilized till August 2012.
Pointing to other irregularities in drawal of funds under AC bills, it observed that considerable portion of funds drawn through this route was lying either with the drawing and disbursement officers (DDO) or with the executive agencies even after the lapse of the financial year during which the money was drawn and had been parked in various personal deposit accounts and bank accounts.
At the same time, the CAG pointed out some positives in the state financial health in 2011-12 which, it said, was stable in spite of slowdown in the Indian economy. There was considerable increase in revenue receipts due to increase in its own tax revenue by 27.78 per cent and higher tax devolution from the Centre by 16.5 per cent. As a result of growth in revenue receipts, the state government was able to spend more on account of non-plan and plan heads in 2011-12, the CAG report said.
Opposition demands CBI probe
Leader of opposition in the assembly, Abdul Bari Siddiqui, demanded a BCI probe into the AC/DC bills scam as pointed out in the CAG report. He said the opposition had been demanding investigations into the irregularities of pending AC/DC bills for the last few years. Now, the CAG, too, has confirmed that the AC/DC bills amounting to Rs 35000 crore were still pending.
The chairman of the Public Accounts Committee and RJD legislator from Darbhanga, Lalit Yadav, said the committee would make a detailed probe into the CAG findings. Findings on fraudulent drawal of funds and its misappropriation would be investigated by the committee and stern action would be recommended against the defaulters.
According to the report, 192 schemes could not be launched and 380 schemes remained incomplete due to financial indiscipline.
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