CAG raps K'taka Govt for wasteful expenditure

Bangalore, Mar 28 (UNI) The Comptroller and Auditor General of India has pulled up the Karnataka government for wasteful expenditure of Rs 2.41 crore due to delay in disposing of an old Chetak helicopter and injudicious action on its part.

In his report tabled in the Assembly today for the year ending March 2005, the CAG also made some observations on the financial position of the State Government. According to the report, the overall unspent provision was Rs 1,876.52 crore, five per cent of the total grants or appropriations. The fiscal deficit was the lowest at Rs 3,600 crore during 2000-05. The report says 2004-05 ended with a revenue surplus of Rs 1,640 crore due to healthy growth of revenue receipts, transfer of panchayat bodies funds and interest component relating to repayment of house building advance to revenue account from public account, loans and the advances respectively.

The outstanding liabilities of the State has increased from Rs 26,571 crore in 2000-01 to Rs 46,940 crore in 2004-05.

The report said the Bangalore Development Authority, which had floated bonds to mobilise funds for execution of projects, had to bear Rs 32.31 crore towards cost escalation and shares to its stakeholders. Projects were designed without taking into account results of soil investigations, leading to material changes in design and scope of work, which resulted in avoidable extra expenditure of Rs 1.16 crore.

It said preparation of a master plan for the IT corridor by BDA was without specific legislative sanction, which had resulted in a wasteful expenditure of Rs 1.34 crore.

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