Major expenditures at fag end against rule: CAG

BHUBANESWAR: The Comptroller and Auditor General (CAG) has disapproved the rush expenditure by the State Government in the closing month of the financial year, violating the budget manual.  In its latest report, the CAG has pointed out that according to rule 147 of the Orissa budget manual, rush of expenditure in the closing month of the financial year should be avoided. Contrary to this, in respect of 27 subjects, revenue and capital expenditure exceeding ` 10 crore and also more than 50 per cent of the total expenditure of the year was incurred in March, 2011, the report said.  The CAG pointed out that under four heads, construction of hostels, special Central assistance for special programme for KBK, Rajiv Gandhi Grameen Vidyutikaran Yojana and Finance Commission grant for incentivising issue of UID, 100 per cent of expenditure was incurred during the last month of the financial year. The total provision under the four heads was ` 279.69 crore. The expenditure which is generally used to be distributed throughout the year was incurred at the fag end, which was contrary to the spirit of the budget manual. The CAG maintained that maintaining uniform pace of expenditure is a crucial component of sound public financial management, as it obviates fiscal imbalance and temporary cash crunches due to revenue expenditure mismatches during a particular month arising out of unanticipated heavy expenditure in that particular month. Besides, quality of the assets being created out of such expenditure can be maintained if expenditure is incurred in a planned manner, it said. The CAG also pointed out that various departments had also violated the rule by not surrendering grants and appropriations to the Finance Department when savings are anticipated. At the close of 2010-11, though 36 cases of savings were noticed, the savings of ` 385.84 crore were not surrendered.