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(Non-Psus) Sectors Government of Jammu and Kashmir Report of the Comptroller and Auditor General of India on Social, General, Economic (Non-PSUs) sectors for the year ended 31 March 2017 Government of Jammu and Kashmir Report No. 3 of the year 2018 www.cag.gov.in TABLE OF CONTENTS Particulars Reference to Paragraphs Page Preface v Overview vii Chapter-I : Introduction Budget profile 1.1 1 Application of resources of the State Government 1.2 1 Persistent savings 1.3 1 Funds transferred directly to the State Implementing 1.4 2 Agencies Grants-in-aid from Government of India 1.5 2 Planning and conduct of audit 1.6 3 Response of Government to Audit Report 1.7 3 Recoveries at the instance of Audit 1.8 3 Response of Government to Audit 1.9 4 Follow-up on Audit Reports 1.10 5 Non-submission/ delay in submission of annual 1.11 5 accounts by Autonomous Bodies Year-wise details of reviews and paragraphs 1.12 6 appeared in Audit Report Chapter-II : Performance Audit Department of Forest, Environment and Ecology National Afforestation Programme 2.1 7 Health and Medical Education Department National Health Mission-Kashmir Region 2.2 29 Power Development Department Power purchase agreements and electric revenue 2.3 54 collection Rural Development Department Mahatma Gandhi National Rural Employment 2.4 81 Guarantee Scheme Chapter-III : Compliance Audit Food, Civil Supplies and Consumer Affairs Department Avoidable expenditure on transportation of wheat 3.1 103 i Particulars Reference to Paragraphs Page Avoidable extra expenditure 3.2 104 Extra expenditure and deprival of Central sugar 3.3 105 subsidy Misappropriation of food grains 3.4 107 Short remittance of sale proceeds of food grains 3.5 107 Health and Medical Education Department Pradhan Mantri Swasthya Suraksha Yojana 3.6 109 Unfruitful Expenditure on construction of Ayush 3.7 118 Hospital Unauthorised functioning of healthcare institutes and 3.8 119 non-realisation of revenue Higher Education Department Unproductive expenditure due to improper human 3.9 120 resources planning Home Department Embezzlement of Government money 3.10 121 Information Technology Department Infrastructure preparedness for implementation of 3.11 122 National e-Governance Plan Irrigation and Flood Control Department Blocking and diversion of funds 3.12 133 Blocking of funds on water storage tank 3.13 135 Unfruitful expenditure on incomplete lift irrigation 3.14 136 scheme Unfruitful expenditure of `2.35 crore due to 3.15 137 non-completion of irrigation project Power Development Department Non-recovery of mobilisation advance and undue 3.16 138 favour to a contractor ii Particulars Reference to Paragraphs Page Public Health Engineering (PHE) Department Stores and Stock Management in PHE Department 3.17 141 Unfruitful expenditure on water supply schemes 3.18 150 Wasteful expenditure 3.19 151 Public Works (Roads and Buildings) Department Incomplete Roads and Buildings 3.20 152 Avoidable extra expenditure on Bailey bridges 3.21 164 Blocking of funds and irregular expenditure 3.22 165 Unfruitful expenditure on Bagh-e-Mehtab Bridge 3.23 167 Rural Development Department Construction of Toilets under Swachh Bharat 3.24 169 Mission Unfruitful expenditure and blocking of funds 3.25 183 Unproductive expenditure in defunct State 3.26 184 Procurement Supply and Marketing Agency Tourism Department Blocking of funds and unfruitful expenditure 3.27 185 iii Appendices Appendix Particulars Reference to No. Paragraph Page Statement showing unspent balance of 11 Forest Development Agencies/ Village 2.1.1 2.1.7.1 189 Forest Committees at the end of financial years Statement showing targets and 2.1.2 achievements under ANR, AR, PD/ SP and 2.1.8.10 190 RMH during 2011-16 Statement showing physical achievements 2.1.3 vis-a-vis amount spent for purposes other 2.1.8.10 191 than on plantation Position of Manpower in DHs, CHCs, 2.2.1 2.2.9 192 PHCs and SCs in Kashmir Division 2.3.1 Statement showing list of selected PPAs 2.3.5 196 Beneficiary satisfaction level survey conducted by Audit on 653 beneficiaries of 2.4.1 2.4.12 197 130 Panchayats of 39 test-checked Blocks of six Districts Incomplete road works/ schemes due to 3.20.1 inadequate funding, forest clearance/ land 3.20.5 198 acquisition Cost and time overrun of road works/ 3.20.2 3.20.5 200 schemes taken up under State Plan iv PREFACE This Report of the Comptroller and Auditor General of India for the year ended 31 March 2017, was prepared for laying in the Legislature of the (erstwhile) State of Jammu and Kashmir and sent to the Governor in April 2018, in accordance with Article 151 of the Constitution of India. As per the decision of the Government of India, Ministry of Finance (June 1994), wherever President’s Rule is extended beyond one year, the C&AG’s Report relating to the State would be placed in Parliament. Hence, this Report is being sent to the President for laying in the Parliament. Consequent to the reorganisation of the State of Jammu and Kashmir, under the Jammu and Kashmir Reorganisation Act, 2019 the Report is being sent to the Lieutenant Governors of the successor Union Territory of Jammu and Kashmir and Union Territory of Ladakh. The Report contains significant results of the performance audit and compliance audit of the departments/ autonomous bodies of the Government of erstwhile State of Jammu and Kashmir under the Social, General and Economic Sectors (Non-Public Sector Undertakings), conducted as per provisions of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971. The instances mentioned in this Report are those, which came to notice in the course of test audit for the period 2016-17 as well as those which came to notice in earlier years, but could not be reported in the previous Audit Reports. Instances relating to the period subsequent to 2016-17 have also been included, wherever necessary. The audit has been conducted in conformity with the Regulations on Audit & Accounts and Auditing Standards issued by the Comptroller and Auditor General of India. OVERVIEW This Report contains four Performance audits i.e. National Afforestation Programme, National Health Mission Kashmir region, Power purchase agreements and electric revenue collection and Mahatma Gandhi National Rural Employment Guarantee Scheme, 27 paragraphs involving `4,011.31 crore relating to avoidable, extra, unfruitful, unproductive and wasteful expenditure, misappropriation/ short remittance of sale proceeds of food grains, blocking of funds, undue favour to contractor and embezzlement of Government money etc. Some of the major findings are mentioned below: The total expenditure1 of the State increased from `30,434 crore to `48,174 crore during 2012-17, the revenue expenditure of the State Government increased by 59 per cent from `25,117 crore in 2012-13 to `39,812 crore in 2016-17. Non-Plan/ Normal revenue expenditure increased by 60 per cent from `23,560 crore to `37,812 crore and capital expenditure increased by 59 per cent from `5,224 crore to `8,286 crore during the period 2012-17. PERFORMANCE AUDIT The National Afforestation Programme (NAP) was formulated in the 10th Five Year Plan (2002-2007) by merging four Centrally Sponsored Afforestation Schemes (CSASs)2 of the Ministry of Environment, Forests and Climate Change (MoEFCC), Government of India (GoI). The objectives of the NAP include sustainable development and management of forest resources, increase and/ or improvement of Forest and Tree Cover (FTC) and rehabilitation of degraded forests and other areas by institutionalising decentralised/ participatory forest management and supplementing livelihood improvement processes. A performance audit of the National Afforestation Programme (NAP) covering the period 2011-12 to 2016-17 brought out that Programme implementation had suffered due to non-observance of guidelines and deviation from the objectives during execution of various activities and there was shortfall in achievement of targets under plantation. Some of the significant findings are given below: ••• The overall forest cover to geographical area in the State decreased from 16.09 per cent in 2009 to 15.78 per cent in 2015. Against target of 66 per cent of geographical area in hills of the State to be covered under forest and tree cover as per National Forest Policy 1988, only 24.02 per cent was under forest and tree cover, leaving a shortfall of 41.98 per cent of the envisaged goal. (Paragraph: 2.1.6.1) ••• Seven Forest Development Agencies could not be brought under the ambit of National Afforestation Programme by the State Forest Development Agency 1 Total expenditure includes revenue expenditure, capital outlay and disbursement of loans and advances 2 Integrated Afforestation and Eco-Development Projects Scheme (IAEPS), Area Oriented Fuel Wood and Fodder Projects Scheme (AOFFPS), Conservation and Development of Non-Timber Forest Produce (NTFP) including Medicinal Plants Scheme and Association of Scheduled Tribes and Rural Poor (ASTRP) in regeneration of degraded forests vii Audit Report-Social, General and Economic Sectors (Non-PSUs) for the year ended 31 March 2017 during 2010-17, despite the fact that five Forest Development Agencies had formulated and submitted their plans (2010-15) costing `37.59 crore to the State Forest Development Agency which was not forwarded to the National Afforestation and Eco-Development Board. (Paragraph: 2.1.6.1) ••• Receipt of funds from the National Afforestation and Eco-Development Board by the State Forest Development Agency were allocated disproportionately to Forest Development Agencies. Against release of `4.44 crore by the National Afforestation and Eco-Development Board to the State Forest Development Agency for 15 Forest Development Agencies, only `1.80 crore were released (2013-14), whereas against release of `5.46 crore for nine Forest Development Agencies, `9.23 crore were released (2011-14).
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