CAG recommends Delhi Govt to prepare "realistic" budget

The Comptroller and Auditor General of India (CAG) has recommended to the Delhi government to prepare "realistic" budget estimates to avoid non-utilisation of funds and supplementary provisions.
In its audit report for the year 2014-15, CAG has pointed out that Rs 6,093.85 crore remained unutilised indicating that the budget was not prepared after adequate scrutiny of projects and schemes.
According to the report which was tabled in Delhi Assembly today, against total provision of Rs 37,117.99 crore, an expenditure of Rs 31,024.14 crore was incurred which resulted in savings of Rs 6,093.85 crore.
"Scrutiny of the year 2014-15 showed that provision under various sub-heads under the Centrally Sponsored Schemes and Scheduled Caste Sub-Plans (CSS and SCSP) was made during the year but..The entire provisions of Rs 265.82 crore remained unutilised, defeating the original purpose for which the budget provision was passed by the Legislative Assembly," the report said.

"...Indicating that the budget estimates were not prepared after adequate pre-budget scrutiny of projects and schemes. The main reasons for non-utilisation of funds were attributed to non-implementation of schemes, non-receipt of funds from Centre government and release of less grants," it added.
According to the report, major schemes which failed to take off or suffered due to non-utilisation of entire provision were -Grant to DSIIDC for construction of houses for weaker section (JNNURM)(Rs 130 crore); Grants-in-aid to East Delhi Municipal Corporation for JNNURM (Rs 30 cr); Loan to Indraprastha Institute of Information Technology (Rs 70 cr)' Equity capital to DTC for purchases of buses (Rs 69.82 cr); Loan to MRTS for reimbursement of central taxes (Rs 348 crore); loan to DJB for Chandrawal WTP (Rs 30 cr); equity contribution to JVC power plant at Jhajjar (Rs 72.60 cr) and loan to cover gap in resources (Rs 330 cr).

The report has also pointed out that during the year substantial surrenders involving Rs 997.93 crore were made which can be attributed to slow progress of work, release of less grant/loan and non-implementation of scheme.
"The government may consider taking up the matter with Public Account Committee Secretariat for regularisation of excess expenditure. It is also recommended to prepare realistic budget estimates to avoid large savings and supplementary provisions.
"Devise suitable mechanisms by finance department to avoid rush of expenditure in last quarter/month of the financial year," the CAG has recommended.