HYDERABAD: After finding fault with the state government on its financial management and budgetary control for the year ending March 2010 during its report on Sunday, the Comptroller and Auditor General (CAG) found that funds earmarked for specific social welfare activities were not released at all or released on time.In its latest report for the year ending on March 2011 tabled in the Assembly on Monday, the CAG asked the state government to ensure that budgeting process is more transparent and result-oriented.The CAG found that a whopping Rs 46,330 crore has been blocked up in various projects taken up by the state government and not completed over the years thereby depriving benefits to the people.The government has been advised to prepare an action plan to complete all the pending projects in a time-bound manner and monitor its implementation.The CAG wanted the government to adhere to budgetary processes, procedures and financial rules apart from making efforts to submit realistic budget estimates.Further, the CAG recommended for closure of lossmaking public sector units in non-core sectors and asked the government to draw up a road map in this regard. The recommendation was made in view of 'extremely poor' level of loan recovery advanced by the government to various statutory corporations, companies, cooperatives and others.The CAG found that the state government incurred a loss of Rs 559 crore due to waiver, evasion and refund of taxes. The CAG raps the government for not maintaining an appropriate mechanism to ensure proper utilisation of Central funds.It was noticed that the Central government has transferred a whopping Rs 12,174 crore during 2010- 11, but there is no mechanism to monitor the use of these funds.The CAG also took serious exception to non-compliance of various departments in the state government with rules and procedures and stated that internal controls with the government departments were not functioning as envisaged.Prohibition and Excise Department: The excise revenue of the government has increased from Rs 2,684.57 crore in 2005-06 to Rs 5,848.59 crore in 2009-10 making it the second largest source of tax revenues.Shockingly, the unauthorised sale of liquor through unlicensed shops increased by 351 per cent during the period.In its report, the CAG found a revenue implication of Rs 21.8 crore.Apart from recommending introduction of bar coding system for excise adhesive labels and increasing manpower, the CAG asked the government to carry out a review of liquor shops near educational, religious institutions and hospitals.
Comments
0 comment