CAG points out deviations from prescribed budgetary processes in Uttar Pradesh
Listing issues with budget management, the CAG has pointed out lapses in the regularisation of excess expenditure, classification of expenditure as revenue and capital, lump sum budgetary provisions, discrepancies in the depiction of centrally sponsored schemes, budget projections and gap between planning and execution.
Under the provisions of Article 205 (1)(b) of the Constitution of India, if excess money has been spent on any service in a financial year (more than the amount granted for that service and for that year), the governor shall cause to be laid before the state legislative assembly a demand for such excesses.
'Excess disbursements amounting to ₹32,533.56 crore under 104 grants and 49 appropriations pertaining to the years 2005-2006 to 2023-2024 are yet to be regularised by the state legislature,' the CAG said in its report on the State Finances for 2023-24. The report was tabled in the state legislative assembly on Tuesday.
The CAG further observed, 'Excess expenditure vitiates the system of budgetary and financial control and encourages financial indiscipline in management of public money and its non-regularisation is an infringement of the constitutional provision.' The CAG report pointed out misclassification between revenue and capital expenditure and as a result of misclassification of revenue expenditure as capital expenditure the revenue surplus was overstated by ₹283.39 crore in 2023-2024.
The CAG report observed that lump sum provisions should not, as a rule, be made in the estimates except when the expenditure out of lump sum allotments is regulated by standing sanctions, instructions or rules.
'During the year 2023-2024, lump sum provisions of ₹11,022.30 crore crore were made under various heads of 17 grants without indicating scheme details. Out of these lump sum provisions, actual expenditure of ₹6474.16 crore (58.74 per cept of the provisions) was incurred,' the CAG report said.
There have been discrepancies in the depiction of centrally sponsored schemes, the report said, noting that in the case of 22 programmes under the centrally sponsored schemes the specified funding pattern (central share, state share and financial institution) was not mentioned.
The CAG report also observed, 'During 2023-2024, actual expenditure was ₹5,84,110.09 crore against provision of ₹7,72,484.07 crore. The overall savings of ₹1,78,373.98 crore were 23.39 per cent of total provision…'
The CAG report gave details of the pattern of lower budget utilisation against the budget provisions in the past five years (2019-2024). The report said the budgetary provisions increased consistently during the period while actual utilisation remained in the range of 73% to 77% between 2019-2024.
The CAG recommended that the state finance department should review the reasons for grants/appropriations remaining unutilised and take steps to make more judicious budget provisions in future. It also suggested that the reappropriations should be based on careful assessment of fund requirements.
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