Last Year's Budgetary Estimates Unrealistic: CAG

The budgetary assumptions were unrealistic and expenditure monitoring and control mechanism was weak in the state during 2012-13, the comptroller and auditor general has said.

Published: 14th February 2014 08:22 AM  |   Last Updated: 14th February 2014 08:22 AM   |  A+A-

The budgetary assumptions were unrealistic and expenditure monitoring and control mechanism was weak in the state during 2012-13, the comptroller and auditor general has said.

The CAG report on State Finances was tabled in the state legislative Assembly on Thursday.

According to CAG, the entire supplementary provision of ` 10,990 crore was proved unnecessary as the actual expenditure Rs 1,30,704 crore was less than the original budget provision of ` 1,46,243 crore.

The overall saving of ` 26,528 crore stood at 17 per cent of the budget mainly due to non-release of budgetary orders, non-release of administrative sanctions, freeze orders by the government, non-receipt of requisition from unit offices and others.

Despite flagging the issue repeatedly, an excess expenditure of ` 276 crore was made during 2012-13 without legislative authorisation. Regularisation of such expenditure since 2004-05, amounting to ` 2,876 crore, was yet to be carried out by the government by taking legislative  approval.

SC/ST SUB-PLAN: The state government’s allocation for special component plan for SCs and sub-plan for STs ranged between 8 and 10 per cent and 3 and 4 per cent respectively which was below the mandatory allocation of 16.2 and 6.6 per cent respectively.

Further, out of the allocation, the government could spend only  58 to 71 per cent and 55 to 72 per cent under SCP and TSP, the CAG observed.

FISCAL CONSOLIDATION: The government has been achieving the fiscal reform targets every year in the post-FRBM legislation period. The state registered revenue surplus for the seventh consecutive year during 2012-13 and the fiscal deficit was within the ceiling prescribed by the FRBM Act.

COST ESCALATION: Capital works, irrigation projects and road works were not completed on time, which led to cost escalation without fully achieving the desired benefits. The investment blocked in such incomplete works/projects as of March 2013 was ` 71,595 crore (` 49,516 crore in previous year).

Although the government accorded adequate fiscal priority to development expenditure during 2012-13, it did not ensure that the allocated funds were released fully for the intended purpose. The outlay for education (13.70 pc), in particular, was behind that of the General Category States (17.23 pc).

Further, the share of capital expenditure to aggregate expenditure (12.44 pc) was also lower in the state when compared to other General Category States (13.23 pc).

CORPORATIONS IN RED: The accounts of several companies and corporations have been in arrears and up to the year of accounts finalised, the accumulated losses of 14 entities alone amounted to ` 5,970 crore, with AP State Housing Corporation (` 3,617 crore) and AP State Road Transport Corporation (` 1,984 crore) leading the list.

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