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India Today
a day ago
- Politics
- India Today
Bihar elections: Schemes in place but money not being used - constantly!
As with every election, leaders and hopefuls in Bihar are currently busy making promises. The question voters should ask is: even if the promises are kept, is the money allocated to schemes actually being used?A Comptroller and Auditor General of India report released on July 24 found some 'major cases of non-utilisation of the entire budget provision (Rs 100 crore and above) amounting to Rs 7,567.93 crore in 20 Scheme Head of Accounts'. The report is based on 2023-24 highest unutilised fund, Rs 1,628 crore, was for the second phase of the Swachh Bharat Mission. Next to this was an unused Rs 1,500 crore for the Indira Awaas Yojana, which provides grants for housing construction to poor people. Additionally, there's an unused amount of Rs 1,387.52 crore related to various health schemes. Notably, a separate CAG report recently highlighted the extremely grim situation of healthcare in the state. Despite that, the funds for health-related works recommended by the Finance Commission, infrastructure maintenance under the National Health Mission, renovation of health centres under Saat Nishchaya-2 and construction of buildings of health sub-centres under the NABARD-sponsored scheme were completely Read | Why healthcare needs to be centre stage in Bihar electionsOther major schemes include Pradhan Mantri Gram Sadak Yojana with Rs 1,100 crore unused, Rs 849.84 crore unused for financial aid to colleges and non-government schools, the National Rural Drinking Water Programme with Rs 336 crore of unused funds, and UNDERUSEDWhile many grants remained completely unutilised, many others were only half used. Among the large schemes worth Rs 1,000 crore and more, essential departments such as agriculture, education, home, disaster management, etc., saw unused funds consistently since than Rs 10,000 crore remained unutilised as grants for education every year between FY20 and FY24. In terms of share of the full budget, nearly 53 per cent of the grants in rural development were left unused in FY24 and around 47 per cent of the grants in agriculture and disaster management were left unused CAG report suggests that the consistent underutilisation of funds is mainly due to overbudgeting, lack of proper expenditure planning, bureaucratic delays, poor accountability and weak financial controls.- EndsTune InMust Watch
Time of India
18-07-2025
- Business
- Time of India
CAG report flags Rs 71 cr given to Mumbai-Pune Expressway toll firm for Covid disruption
A report of the Comptroller and Auditor General of India has slammed the Maharashtra government for irregular revenue waiver of Rs 71.07 crore given to the Mumbai Pune Expressway toll operator amid the COVID-19 lockdown. Tired of too many ads? go ad free now The Report of the Comptroller and Auditor General of India on Compliance Audit was tabled in the Maharashtra legislature on Friday. The Mumbai Pune Expressway Limited (MPEL), a government company owned and controlled by Maharashtra State Road Development Corporation (MSRDC), had entered into a sub-concession agreement with IRB MP Expressway Private Limited (IRB) for Tolling, Operation, Maintenance and Transfer (TOT) for the period from March 1, 2020 to April 30, 2030 for a sub-concession fee of Rs 8262 crore. "The upfront amount payable by IRB to MPEL was Rs 6500 crore (due on March 1, 2020 with interest 9.5 per cent per annum, if delayed) while the balance Rs 1762 crore was payable in the next three years. The toll collection commenced from March 1, 2020 and the contract is in progress," it said. The report said, as per Article 25.1 of the agreement, IRB was supposed to maintain suitable insurance cover at its own cost to cover third party claims and 'force majeure' events including non-political events, which Article 27.2 described as act of god, epidemic, earthquake, flood, landslide, cyclone, strikes or boycotts, court orders, geological conditions and similar circumstances of nature. Article 27.7.2 of the agreement also laid down that in case of losses arising due to occurrence of such non-political events, the parties shall bear their respective force majeure cost and neither party shall be required to pay to the other party any cost thereof, the report pointed out. The report claimed IRB did not insure its business for force majeure events. After the COVID-19 lockdown came into force on March 23, 2020, toll collection was disrupted and this constituted a non-political force majeure event in terms of Article 27.2, the report said. Tired of too many ads? go ad free now "IRB requested (on March 24, 2020) MPEL to bear the losses of toll revenue and grant a waiver in the sub-concession fee. MPEL rejected the claims citing the relevant clauses pertaining to non-political force majeure events," it said. "Thereafter, upon continued requests from IRB to consider their case for suitable compensation, the Board of Directors of MPEL in its meeting (on April 20, 2020) agreed to provide compensation based on computation of revenue loss for 25 days in toll collection. The amount of compensation was worked out to Rs 71.07 crore," the report said. The decision of the MPEL for payment of compensation of Rs 71.07 crore to IRB for a non-political force majeure event was not in compliance with Article 27.2 and 25.1 of the agreement, the CAG report asserted. Payment of force majeure cost of Rs 71.07 crore by MPEL to IRB was in contravention to provisions of the agreement and undue favour to IRB, it added. "Following dispute, a mediation report dated October 13, 2023 advised IRB to remit Rs 71.06 crore to MPEL. The government stated (in December 2023) that recovery of Rs 71.07 crore has been initiated. The government further stated that MSRDC has been asked to recover Rs 71.06 crore from the contractor within three months," it said.
The Hindu
09-07-2025
- Politics
- The Hindu
Time to halt forceful acquisition of land
For more than 1,100 days, farmers of 13 villages near Channarayapatna in Devanahalli taluk, Bengaluru Rural district, have been agitating against the 'forceful' acquisition of their land by the Karnataka government for industrial development. In 2022, the Basavaraj Bommai government notified 1,777 acres off land for a proposed hi-tech defence and aerospace park. This highly fertile region is the lifeline of Bengaluru's food and nutrition security. The farmers immediately took to the streets, demanding that the plan be dropped. They rejected offers of compensation and promises to drop part of the acquisition. The farmers say they want to continue farming and remain on their land that have sustained lives and livelihoods for generations. Their persistent struggle has not only brought them into national focus, but has also foregrounded the legitimacy of forcible land acquisition. Over the past month, this agitation has taken an intense turn. On June 25, a 'Devanahalli Chalo (let's go to Devanahalli)' programme was organised, and various farmer, trade union, Dalit, student, and women's organisations came together to show solidarity with the farmers. The use of police force in dispersing the protesters only intensified the agitation under the aegis of Samyukta Horata Karnataka. Facing intense pressure, Chief Minister Siddaramaiah called a meeting on July 4 and requested time to take a decision. He argued that there were legal hurdles in going back on land acquisition. This is an exercise in obfuscation since the power of the State government to withdraw from the land acquisition process is legally settled. Nevertheless, the farmers have heeded his request and are awaiting his decision. Before elaborating on this, it is necessary to mention that forcible acquisition, premised on the principle of eminent domain, is a colonial relic and has no place in a democracy. It is for this reason that informed consent found a place in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. However, despite this enactment, there are many State expropriation laws that remain on the statute books. These are used indiscriminately to acquire people's lands. Despite several demands, the Karnataka government has shown no inclination in scrapping these laws. The lands of the Devanahalli farmers have been acquired under one such law — the Karnataka Industrial Areas Development Act, 1966. To date, lakhs of acres of agricultural land have been acquired under this statute for establishing industrial areas and for allotting them to individual companies. There is overwhelming evidence that acres of acquired land are lying waste. The Report of the Comptroller and Auditor General of India on the economic sector for the year ending March 2017 confirmed this. The disastrous nature of forcible acquisition stands exposed, yet the State government is yet to undertake a comprehensive review of the status of all acquired lands. The answer to the question of withdrawal from land acquisition proceedings can be found in the Karnataka Industrial Areas Development Act. Section 4 allows the State government to exclude acquired land at any time it deems necessary. This flows from the settled legal position that the State can exercise its power of withdrawal from land acquisition unilaterally. Indeed, with regard to acquisition under the 1966 Act, the Karnataka High Court, in Thomas Patrao Since Deceased by his LR and Anr. vs. State of Karnataka, 2005, held that the State government can cancel land acquisition notifications before taking possession by virtue of its power under Section 21 of the Karnataka General Clauses Act, 1899. The unambiguous position is that the State government can withdraw the Devanahalli land from acquisition by cancelling the preliminary and final land acquisition notifications. Incidentally, this is a power that successive State governments have exercised. Acquisition of hundreds of acres of notified lands were withdrawn on various counts including farmers' resistance, so the Siddaramaiah government has no real reason to seek time. Instead, it must listen to the demand of the farmers and drop the land acquisition. Else, talk of democracy and social justice will remain hollow words. Clifton D' Rozario is a practicing advocate in the Karnataka High Court and the General Secretary of the All India Lawyers Association for Justice
Mint
12-06-2025
- Business
- Mint
Maharashtra's expensive alcohol—following its first duty hike in 14 years—will still find takers. Here's why
On Tuesday, the Maharashtra cabinet approved several revenue-enhancing measures in the excise department, including an increase in liquor duty—its first such hike in 14 years. This would make domestic premium liquors 60% costlier in Maharashtra. However, the tax hangover of the Maharashtra government's excise duty hike on key alcohol products might be short-lived as the underlying trend of India's alcohol consumption remains strong, particularly aided by demand for premium liquors, said experts. 'Young consumers are mainly driving this premiumisation," Naman Shah, an independent consumer sector analyst, told Mint. 'The growing popularity of cocktail culture and demand for curated experiences have made them less sensitive to price hikes. Alcohol is not a sin anymore. People want to taste luxury." The Maharashtra government seems to be capitalising on this trend by hiking excise duty on premium liquors. Indian-made foreign liquors like whiskey, rum and spirits will attract duties 4.5 times their manufacturing costs, up from the current rate of three times, according to the committee tasked with boosting the state's liquor revenue. Alcohol excise duty contributed about 6% of the state's total tax receipts in 2024-25, according to unaudited provisional figures from Comptroller and Auditor General of India. The state government plans to increase that to 10% in FY26. While excise duties on beer and wine have not been increased, country and imported premium liquors will face relatively smaller hikes. This will increase their retail prices by 14% and over 25% respectively. The industry impact The increased liquor levies would support Maharasthra's strained exchequer and help fund populist schemes such as Ladki Bahin Yojana (to provide financial assistance to women in low-income families), as well as benefits for farmers and other communities, said experts. Regarding the potential impact on volumes, Shah believes demand won't be dented in the long term as consumers are willing to pay. Moreover, 'majority of Indian consumers still fall under the 'mass" segment where the proposed hike on excise duty is only 3-4%. So, there should not be much of a volume impact, overall," the consumer sector analyst said. But the market panicked and heavily penalised distilleries with significant exposure to the state. United Spirits Ltd, India's largest alcohol producer and owner of brands like McDowell's No.1, Royal Challenge, and Signature, has a sizable 25-30% exposure to Maharashtra. As a result, its stock corrected by almost 7% on Wednesday. 'Distilleries with significant exposure to Maharashtra might see a big volume dip in Q2 (the second quarter, July-September) following the price hike," another consumer sector analyst said, requesting anonymity. 'From Q3 onwards, as the festive season kicks in and new prices are absorbed, volumes should recover again." Among major distilleries, shares of Allied Blenders and Distillers Ltd, the maker of medium-ranged Sterling Reserve and Officer's Choice whiskies, declined 5%. The market anticipates major volume hits on the lower to mid-ranged products, despite the proposal of a limited tax hike on them, according to experts. 'There might be some impact on the country, lower-end and mid-premium segments. But I don't see any significant impact on the premium or luxury end," the unnamed consumer sector analyst said. A 'premium' explosion Alcohol companies have been riding a formidable wave of premiumisation post-covid as they have seen an explosion in demand in the 'prestige and above' (P&A) segment, which places an emphasis on brands with quality, reputation, and higher profit margins. United Spirits's P&A volume grew at a faster pace—9% year-on-year—than its overall volume growth of 7% during the fourth quarter of FY25, mainly driven by resilient consumer demand in the luxury and premium segments, Nuvama Institutional Equities said in a recent report. This resulted in a 40% on-year surge in Q4 Ebitda. Similarly, while United Breweries Ltd saw an overall 5% on-year volume growth, its premium-end products clocked 24% yearly growth and Ebitda rose 31%, according to the report. Radico Khaitan Ltd, best known for its Magic Moments vodka brand, has also aggressively expanded its P&A portfolio with premium offerings like Jaisalmer Gin, Rampur Indian Single Malt Whisky, and Royal Ranthambore. Radico has an 8% share in the P&A segment and plans to widen its portfolio further in this segment. This would expand its target user base and improve its confidence on execution, as there is demand for innovative premium products in the market, Motilal Oswal Financial Services said in a note. Moreover, Radico has only 7-8% exposure to Maharashtra. Hence, its stock price was broadly resilient on Wednesday akin to its beer and wine manufacturing peers'. Since beer and wine were spared of any excise duty hikes, shares of Sula Vineyards Ltd rose almost 8%, while those of Maharashtra-based GM Breweries Ltd rose 10%. GM Breweries, which primarily produces country liquor, already receives excise duty concession from the Maharashtra government. 'Now it will also manufacture Maharashtra Made Liquor (MML) for the government. Hence its stock went up" said Shah, the independent consumer sector analyst quoted earlier. MML, which the Maharashtra government introduced along with its excise duty hikes on premium liquors, is a new category of grain-based foreign liquor to be produced exclusively by local manufacturers. It would be priced higher than country liquor, but lower than the cheapest Indian-made foreign liquor.
Time of India
03-06-2025
- Business
- Time of India
Chandigarh administration misses capex targets, exceeds revenue spending
1 2 Chandigarh: In the just-concluded financial year (FY) 2024-2025, the Chandigarh administration once again missed the capital expenditure targets. As per the budget 2024-2025 estimates, Rs 655 crore was allocated under capital expenditure, which was to be spent on development works and the creation of new assets. However, as per the Comptroller and Auditor General of India (CAG) accounts report, UT could spend Rs 472 crore, meaning around 27% of the capital outlay wasn't used. In FY 2023-2024, around 38% of the sanctioned capital expenditure remained unutilised as per the CAG report. In FY 2023-2024, the capital outlay for the city at Rs 722 crore was higher than in FY 2024-2025. By the end of FY 2023-2024, the administration could spend only Rs 442 crore of the capital outlay sanctioned under budget estimates. A similar trend was witnessed in FY 2022-2023, when against the budgetary allocation of Rs 539 crore, the actual expenditure by March 2023 was Rs 240 crore. The UT couldn't spend nearly 55% of the capital outlay. In comparison to falling short on capital expenditure targets, UT in FY 2024-2025 exceeded its revenue expenditure targets. Against a budgetary allocation of Rs 5,858 crore under the revenue expenditure head for FY 2024-2025, the UT spent Rs 6,396 crore. In the previous financial year too, the UT overspent on its budgetary allocation for revenue expenditure. Against a Rs 5,636 crore outlay, the UT spent Rs 6,376 crore. In FY 2022-2023, again the UT exceeded the budgetary allocation of Rs 5,216 crore by the actual spending under the revenue head at Rs 5,669 crore. "Usually, the funds from the capital head are reappropriated to fill the gap in the revenue head. The adverse effect of it generally shows in the following financial year when the Centre can increase the expenditure under the revenue head and reduce it under the capital head in line with the UT spending pattern," said a UT official.
