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Extract From CAG Report On Union Government Accounts

The CAG report (2009) highlights issues with the Union Government's financial management, including unspent funds amounting to Rs. 51259.85 crore for centrally sponsored schemes, leading to an overstatement of government expenditure. It also reveals a discrepancy in the Universal Service Obligation Fund, where Rs. 14033 crore was understated due to inadequate disbursement despite substantial collections. Additionally, the report indicates that capital expenditure was overstated by at least Rs. 1586.75 crore due to misclassification of revenue expenditures related to agricultural and cultural initiatives.

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11 views1 page

Extract From CAG Report On Union Government Accounts

The CAG report (2009) highlights issues with the Union Government's financial management, including unspent funds amounting to Rs. 51259.85 crore for centrally sponsored schemes, leading to an overstatement of government expenditure. It also reveals a discrepancy in the Universal Service Obligation Fund, where Rs. 14033 crore was understated due to inadequate disbursement despite substantial collections. Additionally, the report indicates that capital expenditure was overstated by at least Rs. 1586.75 crore due to misclassification of revenue expenditures related to agricultural and cultural initiatives.

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ritesh1976
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Extract from CAG report (2009) on Union Government

Accounts (PDF file of report can be emailed to you or can be


downloaded from www.cag.gov.in)

From Para 2.2 on page 2 of the report (emphasis supplied)


For the year 2007-08, Union Government made a provision for transfer of central plan
assistance of Rs. 51259.85 crore (as per revised estimates) directly to state/district
level autonomous bodies and authorities, societies, nongovernmental organisations,
etc., for implementation of centrally sponsored schemes. Since the funds are not being
spent fully by the implementing agencies in the same financial year, there remain
substantial amounts of unspent funds in their accounts. The aggregate amount of the
unspent balances in the accounts of the implementing agencies kept outside
Government accounts is not readily ascertainable. The Government expenditure as
reflected in the Accounts to that extent is, therefore, overstated.

From Para 2.4 on page 4 of the report (emphasis supplied)


A total Universal Service Levy of Rs. 20404.44 crore was collected during 2002-03 to
2007-08 by the DoT but a disbursement of only Rs. 6371.44 crore was made from the
USO Fund during this period against claims of reimbursement received from the
service providers concerned. Thus, the closing balance of the Fund as on 31 March,
2008 should be Rs. 14033 crore as against nil balance shown under the Head 8235-
General & Other Reserve Funds, 118-Universal Service Obligation Fund in the Public
Account of India. The closing balance of Universal Service Obligation Fund as on 31
March 2008 was, therefore, understated by Rs. 14033 crore.

The matter was also reported by the Comptroller & Auditor General of India in his
Report No.PA-1 of 2008 (para 1.7.1.1) presented to the Parliament but no action has
been taken by the Department to credit entire proceeds of levy to the USO Fund.

From Para 2.5 on page 4 of the report (emphasis supplied)


Examination of the expenditure of Rs. 3447.75 crore incurred during 2007-08 out of
the fund transferred to SIDF in the Public Account in 2006-07 disclosed that
expenditure of Rs. 1586.75 crore (Appendix II-B) was of revenue nature under the
‘Major Head 2416-Agricultural Financial Institutions’ as subsidy towards
implementation of artificial recharge of ground water through dug wells and ‘Major
Head 2205-Art and Culture’ towards celebration of 150 th year of the First War of
Independence, centenary year of Satyagraha Movement, grants-in aid to various
cultural organisations. Capital expenditure in the Consolidated Fund of India, 2006-
07 was, thus, overstated to the extent of at least Rs. 1586.75 crore. Similarly,
revenue expenditure of similar nature incurred out of Rs.6000 crore transferred to
SIDF in the year 2007-08 in the subsequent years, would also render the capital
expenditure of Rs. 6000 crore booked in 2007-08 accounts overstated to that extent.

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