CAG flags fund misuse, stalled projects and systemic lapses across Nagaland departments, raising concerns over accountability and governance failures.
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DIMAPUR — Crores in irregular spending, stalled projects and weak oversight have come under the scanner as the latest CAG audit flagged widespread financial irregularities across various government departments in Nagaland.
The Comptroller and Auditor General of India (CAG) report for the year ended March 31, 2023—tabled in the Nagaland Legislative Assembly on March 26—highlights how crores of public funds were mismanaged, delayed or spent in violation of rules across key sectors such as healthcare, worker welfare and policing.
A performance audit of the welfare of building and construction workers revealed glaring gaps in implementation, with 96% of sampled workers found to be migrants, none of whom were registered as beneficiaries under the welfare board.
The audit also pointed to delays in transferring INR 2.68 crore in cess funds and flagged inadmissible expenditure of INR 1.50 crore on the purchase of vehicles. It further flagged the absence of inspections to ensure basic facilities and working conditions for labourers.
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In health sector, the audit painted a worrying picture of inadequate infrastructure and manpower shortages. Primary health centres were found to be understaffed, with significant gaps in the availability of doctors, nurses and technicians, while more than half of sub-centres lacked adequate personnel.
Essential diagnostic services were unavailable in district hospitals, and emergency and trauma care facilities were largely absent, forcing patients to seek treatment elsewhere. Despite the installation of oxygen plants across health facilities, many remained underutilised, and the state continues to lag behind national health targets.
The audit also flagged serious shortcomings in the modernisation of police forces, citing weak planning, delays in fund release and poor utilisation of resources.
A combined shortfall of INR 35.60 crore in funding was recorded, while INR 25.50 crore remained unadjusted under various bills. Projects worth crores were found to be lying unused, and instances of funds being spent on unexecuted works were also highlighted.
In the area of taxation, the report pointed to weak oversight in GST compliance, with no clear guidelines for scrutiny of returns and a large number of non-filers going unchecked. Revenue discrepancies led to a short levy of taxes, while internal audit mechanisms had not been initiated, raising concerns over potential leakage of government revenue.
Several departments were also found to have made irregular payments for works that were either partially executed or not carried out at all.
These include INR 5.86 crore in the Public Works department, INR 1.36 crore in the Tourism department and INR 0.58 crore in the Water Resources department, among others. In another instance, funds were misutilised in rural development projects, reflecting weak monitoring and verification systems.
The audit further highlighted unfruitful expenditure in the Urban Development department, where an INR 27.97 crore water supply project for Kohima remains non-functional due to the failure to augment bulk water sources, exacerbating the city’s water shortage.
Additionally, the School Education department was flagged for excess payment of INR 0.94 crore due to irregularities in textbook printing, while other instances of financial mismanagement pointed to systemic issues in procurement and financial controls.
The CAG report called on the state government to fix responsibility, recover misused funds and strengthen oversight mechanisms across departments.