CAG pulls up Centre for "deficient" monitoring of expenditure

Comptroller and Auditor General has pulled up the Centre for "deficient" monitoring of expenditure as Utilisation Certificates were not obtained in 37,569 cases totaling expenses of Rs 51,527 crore as of March end.
The Comptroller and Auditor General of India (CAG) today presented a report on Accounts of Union Government in Parliament.
Utilisation Certificates are the only mechanism for the ministries to verify the money has been utilised for the purpose for which it was given.
"In 26 Ministries/Departments, 37,569 UCs involving Rs 51,527.1 crore which were due on March 31, 2015 were outstanding which indicates deficient monitoring and follow-up mechanisms in the Ministries/Departments concerned," the report said.

It said that detailed analysis of expenditure on grants-in-aid released by the Ministry of Food Processing Industries and Ministry of Earth Sciences revealed deficient control mechanisms and inadequate assurance with regard to the quality of the expenditure incurred.
The CAG further said of the total receipts of Rs 7,537.88 crore towards Universal Access Levy during the year 2014-15, the Telecommunications Department transferred Rs 2,086.98 crore to the Universal Service Obligation Fund (USO Fund) which was further disbursed towards the stated objectives.

"Non-transfer of balance amount in USO Fund resulted in under-statement of the closing balance of the USO Fund by Rs 5,450.90 crore for the financial year 2014-15.

"Overall understatement of the closing balance in the USO Fund was of the order of Rs 39,133.76 crore during 2002-03 to 2014-15," the report said.
As per the report, Research and Development Cess aggregating Rs 5,783.49 crore was collected during 1996-97 to 2014-15. Out of this, it noted only Rs 549.16 crore (9.50 per cent) was utilised towards the objectives of levying the said cess".
It also said the financial position of the Government in 2014-15 was characterised by an increase of 8.51 per cent in gross revenue receipts primarily on account of a substantial increase in both tax revenue receipts (9.32 per cent) and non-tax revenue receipts (6.18 per cent) over previous year.

The revenue deficit for the year 2014-15 was 2.92 per cent of GDP against 3.15 per cent of GDP in 2013-14.
The deficit of 2.92 per cent was in contrast to the revenue surplus of 0.5 per cent of GDP to be achieved in 2014-15, as outlined by the Thirteenth Finance Commission.
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Meanwhile, the Finance Ministry in a statement said that Government's Finance and Appropriation Accounts for 2014-15 along with the Audit Report of the CAG were presented in Parliament today.
"This is the second time since Independence that the Annual Accounts of the Union Government have been tabled in Parliament in the same calendar year," the statement said.

This has been possible because of increased automation in the preparation and finalisation of Annual Accounts in the CGA, greater involvement of the line Ministries and Departments and support received from the Comptroller & Auditor General of India, it said.
The achievement was earlier only reached in the Winter Session of 2007 when the Union Accounts for FY 2006-07 together with CAG's Audit Report was tabled in Parliament on December 7, 2007.
However, the CAG's Audit Report for 2006-07 did not contain the figures of excess expenditure incurred by the Railways, as their Appropriation Accounts was not ready by that time.

The Audit Report for FY 2014-15 includes figures of excess expenditure of the Railways as well.
"In addition to these Accounts, as per practice, an analytical Report titled 'Accounts at a Glance 2014-15' provides a macro level overview of the financial position of the Government was also circulated among the Members of the Parliament," the Ministry said.
The Union Government Finance Accounts contain the Centre's Annual Financial Statements, including, the accounts of receipts and expenditure from the Consolidated Fund of India, Public Debt, and other Liabilities and Assets.
The Appropriation Accounts (Civil) present the actual expenditure incurred by Ministries/Departments of the Union Government in relation to the Appropriations voted by Parliament.