CAG flags Goa govt billing 28% of its expenditure as ‘other expenditure

PANAJI: The Comptroller and Auditor General of India (CAG) has pulled up the Goa government for billing as much as 28% of its expenses under the “other expenditure” minor head, which, according to the CAG ,“not only affected transparency in financial reporting but also prevented proper analysis of allocative priorities and quality of expenditure.”

In the CAG report on state finances for the financial year ending in March 2022, the CAG also found that as many as seven state departments had more than 50% of their expenditure booked under the “other expenditure” minor head when that category is to be resorted to only when the appropriate minor head has not been provided in the accounts.

“Finance Accounts 2021-22 of Government of Goa disclosed that expenditure aggregating ₹4,708.07 crore, constituting 28 % of the total expenditure ( ₹16,908 crore) was classified under Minor Head ‘800-Other Expenditure’ in 61 Major Heads under revenue and capital sections,” the report pointed out.

“Similarly, receipts aggregating ₹502.85 crore, constituting four per cent of the total revenue receipts ( ₹14,286 crore) was classified under Minor Head ‘800-Other Receipts’ in 42 Major Heads,” the report states.

“The booking of expenditure under omnibus Minor Head 800 increased by ₹887 crore (23%) during 2017-22,” the report added.

In the case of ‘Major Head 2801 (Power)’ category, an expenditure of ₹1,777 crore (80 %) was booked under ‘Minor Head 800’.

This expenditure was incurred towards cost of bulk supply of power from the National Thermal Power Corporation, the Karnataka Power Transmission Corporation Limited and and Rajasthan State Petroleum Corporation Limited.

“The expenditure could have been booked either partially or wholly under Minor Head 101 (Purchase of Power) falling under any of the Sub-Major Heads namely, 02 (Thermal Power Generation), 01 (Hydel Power Generation) or 06 (Rural Electrification),” the Auditor said.

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During the exit conference, the finance department said a circular has been issued to all the departments to avoid booking under omnibus ‘Minor Head 800’, if an appropriate ‘Minor Head ‘is available under the relevant ‘Major Head’.

“Accounting of large amounts under the omnibus Minor Head 800 - Other expenditure/ Receipts affects transparency in financial reporting, as it fails to indicate disaggregated information on different activities of the Government separately in the accounts,” the auditor said.

The CAG report also reported that the during 2021-22, the state’s revenue receipts increased by ₹3,846 crore (37%); own tax revenue by 1,654 crore (40%); and non-tax revenue by ₹844 crore (30%), over the previous year.

Fund transfers from the central government increased from ₹1,073 crore in 2012-13 to ₹4,694 crore in 2021-22.

The state’s share in central taxes also increased by ₹1,061 crore and grants-in-aid by ₹247 crore over the previous year, the report added.

Per capita income of the State stood at ₹5,44,865 which was significantly higher than the all-India per capita income of ₹1,72,913 during the year 2021-22.