CAG finds irregularities in Centre's agri scheme RKVY

Comptroller and Auditor General has found several irregularities, including fund diversion, in the implementation of Centre's flagship agri-programme RKVY by state governments from 2007 to 2013.
Rashtriya Krishi Vikas Yojana (RKVY) was launched in the 11th Five Year Plan (2007-2012) amid faltering agriculture growth in the previous decades. The agri-scheme was to act as a catalyst in incentivising states so that 4 per cent annual agriculture growth could be achieved.
"Financial management under the scheme was deficient as many instances of excess expenditure, inadmissible expenditure, etc. Were noticed. An important area of concern was submission of incorrect utilisation certificates by states," CAG said in a report laid in Parliament today.

Even though expenditure was not/partially incurred out of the grant received under the scheme, the states submitted UCs for the entire grant received by them. "As a result, expenditure incurred at a given point of time remained un-ascertainable," it said.
Against an allocation of Rs 32,460.45 crore during 2007-08 and 2012-13, an amount of Rs 30,873.38 crore was released to 28 states and seven Union Territories.
CAG, which conducted performance audit from inception of RKVY from 2007-08 to 2012-13, also said that "instances of inflated figures of expenditure were noted. As of September 2013, UCs for an amount of Rs 2,610.07 crore were outstanding from 26 states.

"Short release of funds of Rs 154.65 crore was noticed in three states adversely affecting the project delivery."

CAG said that excess expenditure of Rs 106.13 crore without the approval of State level Sanctioning Committee (SLSC) was noticed in 50 projects in seven states.
Grants of Rs 759.03 crore were found parked in personal ledger accounts/ personal deposit accounts/ savings bank account/ fixed deposit account in 11 states, it said.
"In four states of Haryana, Maharasthra, Meghalaya and West Bengal, diversion of RKVY funds (Rs 114.45 crore) to other schemes/agency were noticed," it added.
Besides, the CAG also noticed various cases of delay in release of funds at various levels i.E. From state government to nodal agency and from nodal agency to implementing agency.

Observing that monitoring of the scheme has been largely satisfactory, CAG said, "Monitoring and evaluation of the scheme both at the central and state levels needs strengthening in a big way."
The Agriculture Ministry engaged the National Institute of Rural Development (NIRD) and 25 other consultants for monitoring and evaluation of implementation of the scheme.
"...RKVY remained without any financial scrutiny through the internal audit of the ministry. ...Monitoring mechanism was not very effective. Though guidelines stressed monitoring at state level only, ministry nevertheless created mechanisms, which it could use gainfully," the report said.