Report of the Comptroller and Auditor General of India on State Finances for the Year Ended March 2012
Total Page：16
File Type：pdf, Size：1020Kb
Report of the Comptroller and Auditor General of India on State Finances for the year ended March 2012 Government of Maharashtra Table of Contents Table of Contents Paragraph Page Preface vii Executive Summary ix CHAPTER I - FINANCES OF THE STATE GOVERNMENT Introduction 1.1 1 Resources of the State 1.2 4 Revenue Receipts 1.3 7 Application of Resources 1.4 13 Quality of expenditure 1.5 25 Analysis of Government Expenditure and Investments 1.6 30 Assets and Liabilities 1.7 38 Debt Sustainability 1.8 43 Fiscal Imbalances 1.9 45 Conclusion 1.10 50 Recommendations 1.11 52 CHAPTER II - FINANCIAL MANAGEMENT AND BUDGETARY CONTROL Introduction 2.1 55 Summary of Appropriation Accounts 2.2 56 Financial Accountability and Budget management 2.3 57 Outcome of Review of selected Grants 2.4 66 Audit of Budgetary Process Planning Department 2.5 77 Advances from Contingency Fund 2.6 88 Outcome of Analysis of Budgetary Assumptions 2.7 88 Conclusion 2.8 90 Recommendations 2.9 90 CHAPTER III - FINANCIAL REPORTING 'HOD\LQIXUQLVKLQJ8WLOLVDWLRQ&HUWL¿FDWHV Non-submission/delay in submission of accounts by Grantee institutions 3.2 91 Delay in submission of Accounts/Audit Reports of Autonomous Bodies 3.3 92 'HOD\LQ¿QDOLVDWLRQRIproforma accounts by Departmentally managed Commercial Undertakings 3.4 93 Misappropriations, losses, defalcations etc. 3.5 93 Transfer of Funds to Personal Deposit Accounts 3.6 94 Functioning of Treasuries 3.7 97 Opaqueness in Government Accounts 3.8 97 Reconciliation of Receipts and Expenditure 3.9 99 Pendency in submission of Detailed Contingent bills against Abstract Contingent bills 3.10 99 Conclusion 3.11 100 Recommendations 3.12 100 Audit Report (State Finances) for the year ended 31 March 2012 iii Table of Contents Reference No. Appendices to Page Paragraph 6WDWH3UR¿OH 1.2 Part-A : Structure and Form of Government Accounts 1.1 104 Part-B : Layout of Finance Accounts 104 1.3 Fiscal Responsibility and Budget Management (FRBM) Act and Rules 1.1 105 1.4 Outcome indicators of State’s Own Fiscal Correction Path 1.1 106 1.5 Time Series data on State Government Finances 1.3 107 1.6 Abstract of Receipts and Disbursements for the year 2011-12 1.1.1 110 6XPPDULVHG¿QDQFLDOSRVLWLRQRI*RYHUQPHQW of Maharashtra as on 31 March 2012 1.7.1 113 1.8 Statement of funds transferred by Government of India directly to State implementing agencies 1.2.2 114 'HSDUWPHQWZLVHSUR¿OHRILQFRPSOHWHSURMHFWV 1.10 Summarized Financial Statement of Departmentally Managed Commercial/ Quasi-commercial Undertakings 1.6.4 117 1.11 Active and Inoperative Reserve Funds 1.7.2 119 1.12 Adverse Balances 1.7.5 120 1.13 Statement showing the outstanding dues from the Power Loom Co-operative Societies as on March 2012 1.6.5.1 121 1.14 Statement showing information regarding Accumulated Losses and Government Investment for the year 2011-2012 (as on 31.07.2012) 1.6.3 124 2.1 Statement of various grants/appropriations where savings were more than ` 10 crore each and more than 20 per cent of the total provisions 2.3.1 126 2.2 Statement showing excess over provisions during 2011-12 requiring regularisation 2.3.3 127 2.3 Statement showing excess over provisions of previous years requiring regularisation 2.3.4 128 2.4 Statement showing expenditure incurred without provisions during 2011-12 2.3.5 132 2.5 Statement of cases where supplementary provision (` 10 lakh or more in each case) proved unnecessary 2.3.6 134 2.6 Statement of various grants/appropriation where VXSSOHPHQWDU\SURYLVLRQVSURYHGLQVXI¿FLHQWE\ more than ` one crore each 2.3.6 136 2.7 Statement showing excess/unnecessary/ LQVXI¿FLHQWUHDSSURSULDWLRQRIIXQGV 2.8 Statement showing surrender of funds in excess of actual savings (` 50 lakh or more) 2.3.9 139 2.9 Statement showing various grants/appropriations in which savings occurred but no part of which had been surrendered 2.3.10 140 Audit Report (State Finances) iv for the year ended 31 March 2012 Table of Contents Reference No. Appendices to Page Paragraph 2.10 Statement showing details of savings of ` one crore and above not surrendered 2.3.10 141 2.11 Statement showing cases of surrender of funds in excess of ` 10 crore on 30 and 31 March 2012 2.3.10 142 2.12 Statement showing percentage of expenditure incurred in March 2012 compared to budget allocation 2.4.9 144 2.13 Statement showing saving of ` 10 lakh and above 2.5.1.1 148 2.14 Statement showing excess of ` 5 lakh and above 2.5.1.1 151 2.15 Statement showing details of funds surrendered as on 31 March 2012 2.5.1.2 153 2.16 Statement showing funds released during February and March 2012 2.5.1.4 156 6WDWHPHQWVKRZLQJ¿QDOUHYLVHGHVWLPDWHVDVRQ 20 and 31 March 2012 2.5.1.6(ii) 160 2.18 Statement showing difference in the Final 0RGL¿HG*UDQWDVSHU$SSURSULDWLRQ$FFRXQWV and the Departmental records 2.5.1.8 161 2.19 Statement showing difference in the Expenditure booked by the Principal Accountant General $FFRXQWVDQG(QWLWOHPHQWV RI¿FHDQGDVSHU Departmental records 2.5.1.8 162 2.20 Statement showing cases of drawals from Contingency Fund where the expenditure was foreseeable 2.6 164 2.21 Statement showing the outcome of analysis of budgetary assumptions 2011-12 2.7 166 3.1 Statement showing department-wise breakup of RXWVWDQGLQJ8WLOLVDWLRQ&HUWL¿FDWHV 3.2 Statement showing performance of the autonomous bodies 3.3 169 6WDWHPHQWRI¿QDOLVDWLRQRIDFFRXQWVDQG Government investment in departmentally managed commercial and quasi-commercial undertakings 3.4 170 3.4 Statement showing department wise/duration wise break up of the cases of misappropriation, defalcation, etc. 3.5 172 3.5 Statement showing department/category wise details in respect of losses to Government due to theft, misappropriation/loss of Government material 3.5 173 3.6 Statement showing pending Detailed Contingent Bills for the years up to 2011-12 3.10 174 4.1 Glossary of terms 175 4.2 Acronyms and Abbreviations 178 Audit Report (State Finances) for the year ended 31 March 2012 v Preface 1. This Report has been prepared for submission to the Governor of Maharashtra under Article 151 of the Constitution of India. 2. Chapters I and II of this Report contain audit observations on matters arising from examination of Finance Accounts and Appropriation Accounts respectively, of the State Government for the year ended 31 March 2012. Information has also been obtained from the Government of Maharashtra, wherever necessary. 3. Chapter III on ‘Financial Reporting’ provides an overview and status of the State Government’s compliance with YDULRXV¿QDQFLDOUXOHVSURFHGXUHVDQGGLUHFWLYHVGXULQJ the current year. KKKK Audit Report (State Finances) for the year ended 31 March 2012 vii Executive Summary Background Maharashtra is the second largest State in India, both in terms of population and geographical area. The State has shown higher economic growth in the past decade as the compound annual growth rate of its Gross State Domestic Product for the period 2002-03 to 2011-12 has been 17.17 per cent as compared to 14.46 per cent in General Category States. The population below the poverty line in Maharashtra is lower than the average of General Category States. During the above mentioned period, its population grew by 17.23 per cent against 13.90 per cent in General Category States. The per capita income compound annual growth rate in Maharashtra (15.12 per cent) has been higher than that of the General Category States (13.09 per cent) in the current decade. This Report on the Finances of the Government of Maharashtra is being EURXJKW RXW ZLWK D YLHZ WR REMHFWLYHO\ DVVHVV WKH ¿QDQFLDO SHUIRUPDQFH RI the State during 2011-12 and to provide the State Government and State /HJLVODWXUH ZLWK WLPHO\ LQSXWV EDVHG RQ DXGLW DQDO\VLV RI ¿QDQFLDO GDWD ,Q order to give a perspective to the analysis, an effort has been made to compare the achievements with the targets envisaged by the State Government Fiscal Responsibilities and Budgetary Management Act, 2005 and in the Budget Estimates of 2011-12. The Report Based on the audited accounts of the Government of Maharashtra for the year ended March 2012, this Report provides an analytical review of the Annual Accounts of the Government. The Report is structured in three Chapters. Chapter I is based on the audit of Finance Accounts and makes an assessment RI WKH 0DKDUDVKWUD *RYHUQPHQW¶V ¿VFDO SRVLWLRQ DV RQ 0DUFK ,W provides an insight into trends of committed expenditure and the borrowing pattern, besides giving a brief account of Central funds transferred directly to the State implementing agencies, without routing it through the State budget. Chapter II is based on audit of Appropriation Accounts and gives a grant- by-grant description of appropriations and the manner in which the allocated resources were managed by the service delivery departments. Chapter III is an inventory of the Maharashtra Government’s compliance with YDULRXV UHSRUWLQJ UHTXLUHPHQWV DQG ¿QDQFLDO UXOHV7KH UHSRUW DOVR FRPSLOHV the data collated from various Government departments/ organisations in VXSSRUWRIWKH¿QGLQJV Audit ¿ndings and recommendations Chapter I Finances of the State Government Fiscal Correction: 7KH ¿VFDO SDUDPHWHUV LH UHYHQXH ¿VFDO DQG SULPDU\ GH¿FLWVLQGLFDWHWKHH[WHQWRIRYHUDOO¿VFDOLPEDODQFHVLQWKH¿QDQFHVRIWKH Audit Report (State Finances) for the year ended 31 March 2012 ix 6WDWH*RYHUQPHQWGXULQJDVSHFL¿HGSHULRG7KHVLJQL¿FDQWJDSEHWZHHQWKH growth rates of the revenue receipts (15 per cent) and revenue expenditure (16 per cent RYHUWKHSUHYLRXV\HDULQFUHDVHGWKHUHYHQXHGH¿FLWGXULQJ as compared to 2010-11. As per the recommendations of the Thirteenth Finance Commission, the revenue GH¿FLWZDVUHTXLUHGWREHEURXJKWGRZQWR]HURIRU+RZHYHUGXULQJ 2011-12, this target of generating revenue surplus could not be achieved.