CAG recommends action against officials involved in excess expenditure

SHILLONG, MAY 4: The Comptroller and Auditor General of India has recommended the state government to fix responsibility on officials responsible for incurring expenditure without budget provisions.

The CAG in its report on State Finances for the year ended March 31, 2017, stated that as per the Budget Manual, expenditure should not be incurred on a scheme/service without provision of funds in Budget.

“The cases of excess expenditure over Budget provision is a very serious matter as it is a violation of the wishes of the Legislature. In all such cases, the responsibility needs to be fixed,” it said.

The report said that it was noticed that expenditure of Rs 33.49 crore was incurred in nine cases without any budget provision in the original estimates/supplementary demand and without any re-appropriation orders to this effect.

Six significant cases of such expenditure involving expenditure in excess of Rs 2 crore during 2016-17 include Rs 4.48 crore on re-imbursement to state for civil defence – general, Rs 8.85 crore for maintenance of road wings – sixth schedule (part II) areas.

It stated that the government may consider fixing responsibility on officials responsible for incurring expenditure without budget provisions.                        

The CAG also revealed that Rs 1462.17 crore was transferred in March 2017 into the major head of Account ‘8443 – Civil Deposits’ primarily to exhaust the unspent budgetary provision which is contrary to the Meghalaya Treasury Rules, 1986.

As per Rule 211 of Meghalaya Treasury Rules, 1986, no money shall be drawn from the Treasury unless it is required for immediate disbursement.

It further revealed that as indicated in the report of the CAG for the previous year, excess expenditure of Rs 1974.87 crore for the year from 1971-72 to 2015-16 had not been regularized.

Although no time limit for regularization of excess expenditure has been prescribed under the Article 205 of the Constitution of India, it however stated that the regularization of excess expenditure is done after the discussion of the Appropriation Accounts by the Public Accounts Committee (PAC).

During the year 2016-17, the total excess in four Grants under Revenue Section and two Grants under Capital Section amounting to Rs 168.06 crore over authorization from the Consolidated Fund which requires regularization under Article 205 of the Constitution.

The CAG stated that the cases of excess expenditure over Grants/provisions is a very serious matter as it is a violation of the will of the Legislature and in all such cases, the responsibility needs to be fixed while adding that the amount of excess expenditure has been increasing year on year.

It pointed out that in Grant No 24 related to Pension & other retirement benefits, the excess expenditure by more than Rs 50 crore of the budget provision has been observed consistently for the last five years.

Meanwhile, the CAG also said that supplementary provision aggregating Rs 357.13 crore obtained in 29 cases (Rs 10 lakh or more in each case) during the year proved unnecessary as the expenditure did not come up to the level of original provision.

In five cases supplementary provision of Rs 34.47 crore proved insufficient leaving an aggregate uncovered excess expenditure of Rs 167.92 crore.

It stated that the original provision was Rs 1.80 crore and supplementary provision was Rs 0.07 crore (in total Rs 1.87 crore) for Stamps & Registration, etc, revenue but the expenditure shown at Rs 2.28 crore thereby resulting an excess expenditure of Rs 0.41 crore.

Similarly, the original provision was Rs 490.98 crore and supplementary provision was Rs 2.50 crore (in total Rs 493.48 crore) for Pensions and Other Retirement Benefits but the expenditure shown was Rs 647.87 crore, an excess of Rs 154.37 crore.

By Our Reporter