CAG hauls up Assam departments for financial irregularities

Guwahati, Mar 3 (UNI) The Comptroller and Auditor General (CAG) of India hauled up several Assam government departments for financial irregularities in its annual report for the fiscal ended March 31, 2007, which was tabled in the State Assembly today.

Moreover, the draft performance reviews sent to the various departments by the CAG, with a request to furnish replies within six weeks before the final report was tabled, also failed to evoke response from the departments, the report added.

The CAG Report(Civil) stated that the fiscal position of the state viewed in terms of key fiscal parameters showed a significant improvement, as the state had been maintaining revenue, fiscal and primary surpluses during 2005-06 and 2006-07.

It added that it was on account of steep increase in the Central transfers, comprising state's share in Central taxes and duties and grants-in-aid from the Centre as well as the state's own resources comprising tax and non-tax revenue during these years. The CAG, however, pointed out that the non-plan revenue expenditure (NPRE) continued to share 75 per cent of the total expenditure and consumed around 72 per cent of revenue receipts of the state during the current year.

Salaries, wages, pension and interest payments continued to consume about three-fourth of the NPRE during the year, it added.

On the huge loss accumulated by statutory companies and government companies, especially in power and transport sectors, the CAG report said it resulted in negligible rate of return on government's investment and inadequate interest cost recovery.

Among the important shortcomings detected in various government functioning included gaps and avoidable expenditures in implementation of the Supplementary Nutrition Programme(SNP) under ICDS in the state, the report stated.

It stated that SNP was implemented in a highly inadequate and non-coordinated manner, marred by non-allocation of funds, diversion of resources of the scheme without compensatory replacement, inequality in allotment of nutritious food and expenditure in excess of norm.

The CAG report also took note of the fact that procurement of medicines has not been need-based and during the last five years (2002-03 to 2006-07), supply of medicines to healthcare units was inadequate.

On educational development of SC/ST students, the CAG report observed that the benefits did not percolate to the targeted groups due to lack of initiative among the nodal departments.

There was a gradual decrease in enrolment of students of both SC and ST categories and drop-out rates remained high, it added.

The audit review of the functioning of the internal control mechanism during 2002-07 of the Cooperative department, the CAG report stated, revealed deficient budgetary, financial, operational and administrative controls and deficiency in internal audit system of the department.

The CAG report also pointed out the shortcomings in the performance of the state's fire service organization, the slow work in computerisation of treasury department of the state and low quality work and slow progress of construction of roads and bridges under North Eastern Council funds.

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