Submission of over 17,000 utilisation certificates delayed: CAG

In its report for fiscal 2013-14 tabled in the state legislative assembly on Friday, the Comptroller & Auditor General said 17,027 utilisation certificates for an aggregate amount of Rs. 1,629.59 crore were delayed as on March 31, 2014, of which 827 certificates were pending since the past three years. It added 40,205 utilisation certificates were due against the disbursement of Rs. 2,486.84 crore of which 17,027 were pending.

The report said pendency of utilisation certificates mainly pertained to the education department where 11,214 certificates were pending for Rs. 265.06 crore, rural development department had 3,424 certificates pending for Rs. 768.37 crore and social justice department 1,276 certificates for Rs. 66.78 crore.

It further said that Art and culture department 385 utilisation certificates for Rs. 7.05 crore, industries department 229 certificates for Rs. 34.53cr, urban development department 106 certificates, for Rs. 294.36 crore, sports department 48 certificates for Rs. 5.45 crore, tourism 36 certificates for Rs. 17.89 crore, animal husbandry department had 33 certificates pending for Rs. 25.17 crore and the excise and taxation department 24 certificates pending for Rs. 7.18 crore.

The CAG report also commented it could not be ascertained whether the departments had utilized the grants for the purpose for which they had been allocated. The government auditor further said state debt is whopping Rs.33,884 crore in 2013-14 with the growth of 11% over the previous year. It also pointed out the financial liabilities during FY14 remained at 41% of the gross state domestic product and 216% of the revenue receipts. It also stated that the share of market loans in the total public dept increased 51.63% in fiscal 2009-10 to 58.69 % in 2013-14.

The CAG also pointed out that union government transferred Rs.1,671 crore to the different implementing agencies of the state without routing through the state budget. It commented that since the funds were not routed through the state budget, the finance accounts failed to present a complete picture of fund flow of central resources to the state.

Further, the CAG picked holes in tax collection, stating an amount of Rs.212.21 crore was under assessment and short levy of sales tax and value added tax in 754 cases during FY2013-14.

The Comptroller & Auditor General pointed out that revenue receipts of Rs. 40.53 crore on account of lease money through the single window clearance agency were irregularly diverted towards the corpus fund of the industrial area development authority, Baddi, instead of being deposited in the government account. Total receipts were Rs. 54.56 crore, of which Rs. 14.03 crore were irregularly utilized for land acquisition and rest deposited in the corpus fund. It violated the Himachal Pradesh Financial Rules, 1971.

Failing to ensure the compliance of contractual provisions by the department led to extension of undue financial benefits of Rs. 8.01 crore to a company besides rendering the unfruitful expenditure of Rs. 12.66 crore, the CAG report added.

Utilisation certificates pending as on March 31, 2014
Period -- Utilization certificate)---(Amount)-
0-1-13983--- 849.76cr
1-3---2216----546.25cr
3-5---- 827----- 231.51cr