CAG raps AP govt over financial management

A day after the Chief Minister remarked that observations of CAG were "not scriptures", the public auditor picked many holes in Andhra Pradesh government's budgeting process and financial management even as it praised the state for achieving fiscal reform targets.
In its report on the state finances for 2011-12, the CAG rapped the government for failing to ensure proper utilisation of allotted funds, particularly on capital works, resulting in staggering escalation of project costs "without achieving desired benefits."
The CAG was also critical of the government's spending on social sector, particularly health and education, and suggested re-prioritisation of outlay.
The Comptroller and Auditor General (CAG) report on State Finances was presented in the Legislative Assembly today.

Prepared by Principal Accountant General Vani Sriram, the report pointed out that as many as 228 major projects\works that were originally due for completion by March 31, 2012, remained incomplete despite the government incurring an expenditure of Rs 49,516 crore.
On top of it, the delay in completion of the deadline resulted in cost escalation of Rs 20,201 crore in respect of 24 projects\works alone.

As many as 72 major irrigation projects, taken up under the ambitious "Jalayagnam" programme in 2004, remained incomplete leading to a cost over-run of Rs 20,142 crore, the CAG said.
The government so far spent Rs 48,156 crore on these projects.

"Some of these projects remained incomplete due to prolonged processes involved in acquiring land, finalising designs and drawings, securing approvals and tendering," the auditor pointed out.