CAG’s Audit report for year ended March 2008 (Civil) Government of Kerala
The Report of the Comptroller and Auditor General (CAG) of India for the year ended March 31, 2008 (Civil), Government of Kerala has been laid on the table of the Kerala Legislative Assembly on June 23, 2009.
Following is the summary of the most important points highlighted in the Report:
FINANCIAL POSITION OF THE STATE GOVERNMENT
Paragraph 1.1 to 1.11
The revenue expenditure during the year increased by 19.5 per cent as compared to 16.1 per cent growth in the revenue receipts which resulted in increase of revenue deficit by Rs 1,146.91 crore. Within the non-plan revenue expenditure, four components - Salary, Pension, Interest payments and Subsidy - constitute 75 per cent of non-plan revenue expenditure during the year. Plan expenditure was 16.7 per cent of the total expenditure while the capital expenditure was 5.4 per cent. Fiscal liabilities of the State were 2.8 times of its revenue receipts and its ratio to Gross State Domestic Product was 39.1 per cent. Return on the Government’s investment in Statutory Corporations, Government Companies, Other Joint Stock Companies, Co-operative Banks and Societies was negligible.
THE NATIONAL PROGRAMME OF NUTRITIONAL SUPPORT TO PRIMARY EDUCATION
Paragraph 3.1
The enrolment figures reported to GOI for availing assistance under the scheme was inflated which resulted in excess allotment of rice. Out of Rs 11.20 crore released by GOI for constructing kitchen-cum-store, replacement of cooking devices and strengthening management, monitoring and evaluation, Rs 10.97 crore remained unutilised as of June 2008. There was delay ranging from two to twelve months in release of cooking charges to schools. Monitoring committees as prescribed in GOI guidelines were either not constituted or were not meeting as envisaged. Monthly and quarterly progress reports were not sent to GOI by Director of Public Instruction (DPI) during 2003-08.
DEVELOPMENT OF TRADITIONAL INDUSTRIES – HANDLOOM
Paragraph 3.2
The Industries Department did not have a reliable and accurate database for planning and implementation of various schemes in the handloom sector. During 2005-08, Rs 34.23 crore of budgeted funds remained unspent due to non-availing of Central assistance in full. Under the Central Scheme, Deen Dayal Hatkargha Prothsahan Yojana (DDHPY) Rs 1.01 crore released to 58 Primary Handloom Weaver’s Co-operative Societies (PHWCS) in three test checked districts were diverted for working capital. Training imparted at a cost of Rs 1.70 crore under DDHPY was unfruitful as the weavers were not trained to use Jacquard and Dobby which were essential for weaving design patterns. Out of Rs 2.95 crore given for design input, Rs 1.19 crore had become unfruitful as the societies did not adopt the design supplied by the agencies and Rs 1.76 crore released to the societies did not serve the intended purpose.
NON-CONVENTIONAL SOURCES OF ENERGY
Paragraph 3.3
Though Government have formulated Renewable Energy Policy in 2002, no follow-up measures were taken either by Government or the Nodal Agency, Agency for Non-conventional Energy and Rural Technology (ANERT). ANERT could spend only Rs 7.72 crore (54 per cent) for implementation of programmes against Rs 14.26 crore received during 2003-08.
As no follow-up action was taken by ANERT, Rs 4.18 crore incurred for installation of Solar Home Lighting System and Solar Street Lighting System under Solar Village Electrification Programme was not reimbursed by Government of India.
Failure to submit timely proposals in accordance with the guidelines of the Ministry of New and Renewable Energy resulted in loss of Central assistance of Rs 8.31 crore for implementation of Remote Village Electrification Programme in 115 colonies.
IT AUDIT OF COMPUTERISATION OF SURVEY AND LAND RECORDS IN LAND REVENUE DEPARTMENT
Paragraph 3.4
‘Computerisation of Basic Tax Records’ a Cent per cent Centrally Sponsored Project started in 1991 is still at data entry stage even after 17 years. Issue of computerised Record of Rights, the primary objective of computerisation of land records, could not be achieved for want of amendments to Acts and Rules and Computerised certificates were issued with unvalidated data. Hardware obtained exclusively for Taluk offices at the cost of Rs 3.58 crore were lying idle for more than three years for want of commencement of online operations. Failure to take adequate care while assessing the technical requirements of interfacing software resulted in wasteful expenditure of Rs 1.55 crore.
VETERINARY SERVICES AND LIVESTOCK DEVELOPMENT
Paragraph 3.5
The implementation of Central scheme ‘Assistance to State for Control of Animal Diseases’ was poor and Rs 3.39 crore of Central funds was credited to State’s revenue instead of refunding it to GOI. Rupees 4.07 crore of grant released by GOI during 2006-08 towards Cattle Insurance Scheme remained unutilised with the Kerala Livestock Development Board.
AUDIT OF TRANSACTIONS
Paragraph 4.2.1
Execution of agreements with a contractor firm by Superintending Engineer, National Highway South Circle, Thiruvananthapuram in violation of Government directions resulted in excess payment of Rs 5.50 crore on two road works, Viz., Varkala-Paripally road and Kilimanoor-Varkala road, taken up under ‘Central Road Fund Scheme’.
Paragraph 4.4.3
Central assistance of Rs 4.05 crore released for implementation of four schemes could not be utilised for the past three years due to delay in implementation of schemes.
Paragraph 4.5.2
Central assistance of Rs 31.61 crore released in March 2006 for Micro Irrigation remained unutilized and State Government saved Rs 1.51 crore towards interest on advance/overdraft consequent upon transfer and retention of unutilized Central funds in Government accounts during 2007-08.
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