CAG Flags Fund Delays, Poor Utilisation and Monitoring Lapses in Arunachal Pradesh's PMGSY Implementation

Fund utilisation was satisfactory only in 2017-18 and 2019-20. In other years, expenditure fell below 80 per cent of available funds, dropping sharply to 49 per cent in 2021-22. As a consequence, the Centre curtailed fund releases to 76 per cent, 77 per cent, and 72 per cent of projected demand in 2017-18, 2019-20, and 2021-22 respectively.The Comptroller and Auditor General of India has flagged multiple irregularities in the implementation of the Pradhan Mantri Gram Sadak Yojana in Arunachal Pradesh, pointing to poor fund utilisation, delays in project execution, and lapses in monitoring across the scheme's implementation machinery.

The performance audit covered the period from 2017-18 to 2021-22 and examined records of the Arunachal Rural Development Agency and Programme Implementation Units in six districts.

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The audit found that the core road network in five districts was approved by executive engineers of the Rural Works Department without consulting intermediate panchayats — a step required under PMGSY scheme guidelines.

In 2018-19, the government sanctioned the upgradation of 20 roads worth Rs 203.91 crore across nine districts, even though 212 habitations in those districts remained unconnected and should have been prioritised for new connectivity. The report also noted that only five per cent of the state allocation was used for road upgradation against a targeted 20 per cent, due to delays in new connectivity projects.

Fund utilisation was satisfactory only in 2017-18 and 2019-20. In other years, expenditure fell below 80 per cent of available funds, dropping sharply to 49 per cent in 2021-22. As a consequence, the Centre curtailed fund releases to 76 per cent, 77 per cent, and 72 per cent of projected demand in 2017-18, 2019-20, and 2021-22 respectively.

The audit found that programme funds of Rs 5,168.21 crore released between 2017 and 2022 were transferred to the implementing agency with delays ranging from 13 to 318 days, making the state liable to pay interest of Rs 166.86 crore. Additionally, retention of over Rs 1 crore in savings accounts instead of fixed deposits resulted in a further loss of interest of Rs 6.88 crore.