HYDERABAD: The CAG report on State Finances for the year ended March 2020 pointed out that the State government did not bestow required attention to asset creation during 2019-20 and capital expenditure dipped in comparison to the preceding year. Huge capital was blocked due to delays in the completion of irrigation projects.
“Irrigation projects are taken up and approved on the basis of data that supports an implicit assumption that the benefits of the project will outweigh the costs. Non-completion of projects not only adversely affects the quality of the expenditure but also deprives the State of the intended benefits of economic growth. Further, the State government did not disclose the financial results of any of the irrigation projects. As a result, there was no assurance of returns from the public investments in Irrigation and Flood control,” the CAG report said.
“There were 24 ongoing irrigation projects (commenced between 1983 to 2017) as of March 2020. The original cost of these projects was revised from Rs 1,16,823.02 crore to Rs 2,21,107.40 crore i.e., an escalation by Rs 1,04,284.38 crore. An expenditure of Rs 1,26,849.89 crore was incurred on these projects as of June 2020. In addition to this, as per Appendix IX of the Finance Accounts, the Government has a pending liability of Rs 7,072.19 crore in respect of 19 ongoing irrigation projects. In the case of other departments, 580 projects or works with an estimated cost of Rs 16,678.54 crore remained incomplete and expenditure of Rs 9,211.55 crore was incurred as of March 2020 on these delayed projects. In addition to this, as per Appendix IX of the Finance Accounts, the government has a pending liability of Rs 716.50 crore in respect of 362 other ongoing projects or works,” the CAG report said.
‘Money blocked’
Irrigation projects are taken up and approved on the basis of data that supports an implicit assumption that the benefits of the project will outweigh the costs. However, huge capital was blocked due to delays in the completion