Rs 137.96 crore surrendered to Centre: CAG

The Comptroller and Auditor General (CAG) of India has rapped the Odisha Government for its failure to utilise the funds allocated under the Centrally-sponsored Security-Related Expenditure (SRE) scheme.

An estimated Rs 137.96 crore was surrendered by the State Government on March 31, 2012 for its failure to utilise the funds sanctioned by the Union Government under the scheme from 2009 to 2012, the CAG report revealed.

The SER scheme, launched in 1996 and revised in February 2005, is being implemented in nine vulnerable districts with an objective to supplement the State’s efforts in dealing with the Maoist menace effectively by way of reimbursing expenditure incurred by the State on security-related activities.

SER funds were provided in State Budget on the basis of the proposed

Annual Action Plan prepared by the State Home Department and submitted to the Government of India for approval. Pending the Centre’s approval, expenditure was incurred through the State Budget and the Home Department claimed reimbursement under the scheme from the Centre against the spending by the Drawing and Disbursing Officers.

The CAG has expressed his displeasure over the improper assessment of the requirement and management of funds under the SRE scheme to deal with the Maoist problem. As per the CAG report, budgetary estimates were not realistic as the expenditure ranging from 46 per cent to 75 per cent indicating the provisions made both in AAP and in the Budget estimates were unrealistic.

During the period 2009-10 and 2011-12, the audit report pointed out, the State Government could not utilise the budgetary amounts of 26 per cent in 2009-10, 28 per cent in 2010-11 and 55 per cent in 2011-12.

The CAG report said shortcomings in budgetary control, advance release of funds to the executing agency and delayed payment of rehabilitation packages to the extremists who surrendered affected the implementation of the SRE scheme and defeated its objective.

The CAG has recommended to the Government to complete the works under the SRE scheme within stipulated time, pay rehabilitation package as per rule and put in place an effective monitoring mechanism system for successful implementation of the scheme.

Though the State Government failed to utilise the funds, it made an additional provision of Rs 13.91 crore in its Supplementary Budget for 2011-12, which was also surrendered along with savings of Rs 73.78 crore of the year.

The audit report also pointed out that the State Government too incurred expenditure on office equipments and establishment expenses of the training institutes meant for the Special Operation Group (SOG) deployed to curb Maoist activities in violation of the SRE. During 2012, the Government spent Rs 5.19 crore violating the guidelines. Besides, the Centre had disallowed Rs 15.60 crore due to incurring of expenditure on inadmissible items during 2009 -2012, the report said.