04/04/2012

CAG report continues to explode many myths about state of Bihar’s finance

 

Patna,(BiharTimes): The Comptroller and Auditor General report, tabled in the Bihar Assembly on Tuesday, has once again exploded many myths dexterously woven about the state finances in the last few years. The AC-DC bills continue to haunt the Nitish Kumar government in Bihar with the report pointing out that out of Rs 25331.05 crore drawn on Abstract Contingent bills between the year 2002-03 and 2010-11, Detailed Contingent bills amounting to Rs 2755.68 crore only were submitted to the Accountant General, Bihar.

The report on state finances for the period ended March 31, 2011, highlighted altogther 1034 cases of misappropriation, defalcation, theft and loss involving government money amounting to Rs 409 crore. The rural development department is the biggest culprit.
The report highlighted as to how the state government has repeatedly failed to utilise the Budget.

There are many deparments, which did not spend a single paise, that is, there was hundred per cent surrenders in many schemes in 2010-11.

The PWD gave contract to fake contractors for constructing roads. There is a large scale bungling in the purchase of medicine and other equipment in the medical college hospitals of the state, it said.

The report revealed that out of Rs 7015.37 crore drawn during 2010-11 on AC bills, Rs 2749.82 crore (39 per cent) was drawn in March 2011 alone. Of this, Rs 937.75 crore was drawn during the last four days, that is, 28 March 2011 to 31 March 2011. Yet there is loud claim of stopping March loot.


Stating that advances from the contingency fund were to be given only for meeting expenditure of an unforeseen and emergent nature, the CAG report said the state legislature raised the corpus of the contingency fund from Rs 350 crore to Rs 1,500 crore on temporary basis for the current
financial year for relief and rehabilitation measures.

According to report the state government, however, succeeded in maintaining a revenue surplus during 2006-11.

There was also a significant increase in revenue surplus during the current year. The growth of revenue receipts during the year was Rs 9005 crore (25 per cent) over the previous year mainly due to increase in state’s own tax revenue/share of Union taxes/duties and grants-in-aid from the government of India.

Meanwhile, Leader of Opposition in the state Assembly, Abdul Bari Siddiqui, said that CAG report is exposing the state government every year. AC-DC bills amount continues to increase. “That is why we demand that CBI probe should be ordered on the basis of CAG report,” he added.

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