Formulate a realistic budget: Comptroller and Auditor General of India to Assam Government
A STAFF REPORTER
GUWAHATI: The Comptroller and Auditor General of India (CAG) suggested to the Assam Government that the latter might formulate a realistic budget based on reliable assumptions of likely resource mobilization, needs of departments, and their capacity to utilize the allocated resources to avoid inflated budgets without actual resources.
The CAG report for the year ended on March 31, 2021, tabled in the Assembly on Monday said, "The State Government may take concrete efforts to augment own resources of revenue, especially non-taxable, to reduce its fiscal deficit. The fiscal deficit of the state was also understated by Rs 1,614 crore during 2020-21. If this is taken into account, the actual fiscal deficit would have been Rs 13,716 crore instead of Rs 12,102 crore. Further, a ratio of fiscal deficit to GSDP would have been 3.94 per cent instead of 3.47 per cent. The government may take necessary steps to reduce the fiscal deficit and to exceed the target under the AFRBM Act, 2011."
The CAG also recommended, "The State Government may institute a rigorous monitoring mechanism to ensure that the departments comply with the prescribed rules and procedures concerning the submission of utilization certificates (UCs) and the DCC bills and accounts of the audit. UCs in respect of grants aggregating Rs 13,629 crore given to 55 departments from 2001-02 to 2019-20 had not been submitted. In absence of UCs, it could not be ascertained whether the recipients have utilized the grants for the purposes for which those were given, and the assets have been created."
The CAG also suggested that "the State Government should review the functioning of the loss-making state public sector undertakings considering the investment and negligible returns on investment. Considering the increasing outstanding debt of the state, the government may take appropriate steps to rationalize its committed revenue expenditure. The committed expenditures like salary and wages, pension, and interest payment steadily increased during 2016-2021. It increased by Rs 1,269 crore during 2020-21."
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