Nagaland: CAG flags expenditure of INR 22.13 crore without budget provision

KOHIMA — A review of budgetary procedure and control over expenditure in respect of two selected grants — Grant No. 36 (Urban Development) and Grant No. 65 (State Council of Educational Research and Training) — revealed that expenditure of INR 22.13 crore was incurred without budget provision.

This was stated in the report of the Comptroller and Auditor General (CAG) of India on State Finances for the year 2023-24.

The review was conducted to ascertain compliance with budgeting processes, monitoring of funds, control mechanisms, persistent savings, and diversion of funds.

According to the report, in 2023-24, Grant No. 36 (Urban Development) recorded overall savings of INR 18.25 crore, representing 4.93% of the total budget provision, due to excess under revenue (INR 16.22 crore) and savings under capital (INR 34.47 crore) heads.

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In Grant No. 65 (SCERT), overall savings stood at INR 36.20 crore, representing 37.51% of the total budget provision, with INR 10.52 crore under revenue and INR 25.68 crore under capital heads.

Audit scrutiny, however, found that expenditure of INR 22.13 crore was incurred without budget provision. The CAG observed that such expenditure is violative of financial regulations as well as the will of the legislature, indicating non-compliance with financial rules by the controlling officers.

The report also noted that in Grant No. 36, re-appropriation of INR 3.32 crore under revenue and INR 64.26 crore and INR 0.31 crore under capital heads were made on the last day of the financial year without citing specific reasons.

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It added that injudicious re-appropriation of funds in 2023-24 led to savings of INR 18.38 crore and excess expenditure of INR 84.93 crore, including INR 17.40 crore in five sub-heads under Grant No. 65 (SCERT). Excess expenditure was also recorded in seven sub-heads across the two grants.

Out of the total provision of INR 152.97 crore in those sub-heads, excess expenditure amounted to INR 119 crore. In two sub-heads, expenditure was incurred despite no budget provision.

The CAG further pointed out that the entire provision of INR 72.41 crore under four sub-heads was surrendered in March 2024 through re-appropriation. This was done to allocate funds to newly created heads without any reason in the case of Grant No. 36, and for re-appropriation to other sub-heads and due to lower receipts from the sponsoring ministry in Grant No. 65.