Delay in completion of projects increased costs in AP: CAG

The delay in completion of irrigation and road projects in Andhra Pradesh led to cost escalations, the Comptroller and Auditor General said in its report on the state's finances for the year ending March 2013.
"Capital works/projects in irrigation and roads sectors were not completed on time, which led to cost escalation on these projects without fully achieving the desired benefits. The investment blocked in such incomplete works/projects as of March 2013 was Rs 71,595 crore (previous year it was Rs 49,516 crore)," the report said.
The grants-in-aid from the Centre decreased by Rs 3,140 crore over the previous year, mainly under non plan grants (Rs 2,715 crore) due to non-compliance by the state of the conditions for the release of funds, said the report, tabled in the Legislative Assembly today.

Although the state government accorded adequate fiscal priority to development expenditure during 2012-13, it did not ensure that the allocated funds were released fully.
"State outlay on education (13.70 per cent) in particular was behind that of the General Category States (17.23 per cent). Further, the share of capital expenditure to aggregate expenditure (12.44 per cent) was also lower in the state, compared to the other General Category states (13.23 per cent)," it said.