CAG raps govt for off-budget financing for capex, subsidy deferment

Says mechanism being used to defer fertiliser arrears, food subsidy bills and outstanding dues of FCI through borrowings, which stand outside the purview of Parliamentary oversight

The Finance Ministry has come under heavy criticism from the Comptroller and Auditor General of India (CAG) for its use of off-budget financing for capital expenditure needs, as well as to defer subsidy arrears.

The CAG said in a report on Fiscal Responsibility and Budget Management (FRBM) tabled in Parliament on Tuesday, that since off-budget financing, like market borrowing and ways and means advances, is outside the purview of parliamentary oversight, the centre should frame a policy on the mechanism and sources of such funding in view of its fiscal implication.

In the report, which covered fiscal 2016-17, the CAG said off-budget