PUDUCHERRY: The Comptroller and Auditor General of India’s (CAG) report on the Union Territory finances for 2023-24, tabled in the Puducherry Legislative Assembly on Thursday, has highlighted underutilisation of funds, rising deficits, and weaknesses in financial management.
The Gross State Domestic Product (GSDP) of Puducherry rose 7.16% to Rs 47,902 crore in 2023-24. However, a revenue surplus of Rs 666 crore in 2022-23 turned into a revenue deficit of Rs 24 crore in 2023-2024, while a fiscal surplus of Rs 349 crore slipped into a fiscal deficit of Rs 463 crore (0.97% of GSDP).
Despite this, the deficit remained within the Fiscal Responsibility and Budget Management (FRBM) limit of 3%.
Revenue receipts grew by 48% over five years, touching Rs 10,042 crore in 2023-24, while capital receipts rose to Rs 1,269 crore.
Expenditure, however, increased sharply to Rs 10,505 crore, with revenue expenditure accounting for over 95%. Committed expenditure, including salaries, pensions and interest payments, formed more than half of revenue spending.
The report noted that against a capital outlay allocation of Rs 702 crore, only Rs 439 crore was spent. Over the 2019–24 period, the UT consistently underutilised capital allocations meant for asset creation.
CAG flagged unspent balances of Rs 423.61 crore lying in Single Nodal Agency (SNA) accounts as of March 2024. As of March 31 2024, the Puducherry government transferred 534.16 crore to SNA, which included the central share of Rs 298.22 crore (which includes previous balance of Rs 79.46 crores) and the state share of Rs 235.94 crore to the SNAs for implementing centrally sponsored schemes.
On accountability, the report highlighted 1,191 pending utilisation certificates amounting to Rs 597.91 crore, 1,868 unadjusted advances worth Rs 312 crore, and extensive use of the "800 – Other expenditure/receipts" head, undermining transparency.
Alarmingly, 316 cases of misappropriation, loss and defalcation involving Rs 28.89 crore were pending final action, of which the Electricity Department alone accounted for Rs 27.14 crore across 257 cases.
The CAG has urged the Puducherry government to strengthen fiscal discipline, improve capital spending efficiency, and tighten financial reporting practices.