CAG lashes out at railways for lack of financial discipline

The Comptroller and Auditor General (CAG) criticized the railways for lack of financial discipline in implementation of projects.

Yesterday, the CAG tabled its report for the year 2012-13 in the Parliament, which said that railways is not following its own rules and regulations, laid down in the financial code for execution of projects and proper accounting of transactions.

It said that the issue is significant especially as a large number of projects are under implementation.

It also said that in the absence of proper records, it is not possible to ascertain expenditure incurred in executing a project, adding that railways fund balances had declined from Rs. 15,655 crore in 2008-09 to Rs. 4,074 crore in 2012-13.

The CAG has now recommended that railways needs to put in place a monitoring mechanism to ensure that the provisions laid down in the codes and manuals are followed carefully to maintain financial discipline.