The Punjab Government is patting its back for presenting a development-oriented Budget and keeping the State finances in “fiscal discipline”. But, the latest reports by the Comptroller and Auditor General (CAG) of India revealed that all is not well with the State’s economy.
The report on State finances for 2013-14 indicated that the State’s total public debt is registering an annual average growth of 9.55 per cent in past five years. Also, the Government was to pay Rs546.89 crore out of Rs7,244.06 crore obtained as “ways and means advances” from the Reserve Bank of India.
The Government failed to contain its revenue deficit as per targets fixed by the Fiscal Responsibility and Budget Management (FRBM) Act. The revelations are against the State Finance Minister Parminder Singh Dhindsa’s claims of State being “well within limits of most of the fiscal targets set under the FRBM Act”.
The State’s share of market borrowings in total public debt has too gone up by 22 per cent from 42 per cent in 2009-10 to 64 percent in 2013-14. If that is not enough, as many as 69.11 per cent of current debt was utilised for repayment of earlier debt during 2013-14.
It may leave you in sweat, but the report said that 675 AC bills amounting Rs1772.10 crore were lying in cold storage in Punjab. This is not all! There were no less than 161 instances of theft, loss and misappropriation involving an amount of Rs1.39 crore.
CAG reports, tabled in the State assembly on Friday, highlighted the vast difference between SAD-BJP Government’s claims of its “all-is-well” financial position and the ground reality.
It pointed that average return on Punjab Government’s investments in Statutory Corporations, Joint Stock Companies, Cooperative Societies, etc was almost negligible — 0.01 to 0.05 per cent — during the period 2009-10 to 2013-14, while the average rate of interest paid by the Punjab Government on its borrowings was between 7.72 and 8.04 per cent during the same period.
During 2009-10 to 2013-14, State’s total public debt witnessed an increase of — Rs25,417 — from Rs53,252 crore in 2009-10 to Rs78,669 crore in 2013-14 — registering annual average growth of 9.55 per cent.
‘weak’ finance management and budget control
Highlighting that State Government’s budgetary process has not been sound during the year with errors in budgeting and persistent savings, CAG reports stated that excess expenditure of Rs5362.17 crores incurred during 2007-13 require regularisation.
Moreover, an expenditure of Rs528.78 crore was incurred without making any budget provision — a move which is against the prescribed norms in the Punjab Budget Manual. The Manual stated that expenditure without making budget provision could only be made after obtaining additional funds by re-appropriation, supplementary grant or appropriation or an advance from the State’s Contingency Fund.
badal's chopper bought against rules
CAG report also pointed at the “disregard of the Rules prescribed for public procurement” by the Civil Aviation Department in buying Bell 429 helicopter costing Rs36.62 crores.
Reports said that the purchase procedure was “violative” of the Punjab Financial Rules’ provisions as the proposals so received were not in response to the pre-defined detailed technical specifications, quality benchmarks and definite requirement of Punjab Government.
The State Government, in 2013, purchased a twin engine, five-seater Bell 429 helicopter with VIP configuration saying that using a hired copter cost Rs1.40 lakh an hour and the state would save money in the long run by owning one.
Agriculture and allied activities
Under Rashtriya Krishi Vikas Yojana, Rs21.31 crore was incurred on areas or activities which overlapped with other existing schemes of the Governments of Centre and the State. Besides, Rs1.17 crore was utilised for works not related to the scheme. Instances of blockade of funds; irregular award of work or undue favour to NGOs, excess or irregular payment of subsidy; and unfruitful or wasteful expenditure were noticed.
Social Security, Women & Child Development Dept
Funds of Rs37.05 crore, under four schemes, were either not released or partially released by the Finance Department despite availability of budget provisions. Facilities of drinking water and toilets were not available in 1524 (15 per cent) and 4181 (42 per cent) Anganwadi Centres respectively in five test-checked districts. Under ‘Awareness against Drug Abuse Scheme’, the Department could organise only 41 theme camps, against 260, at district or block level; 52 TV campaigns against 410; and 418 radio campaigns against 2031 during 2010-14.
Education
Disabled students were deprived of the benefits of the scheme due to diversion, non-utilisation and non-release of Central assistance of Rs17.38 crore earmarked for them.
Home Affairs and Justice
Arms valuing Rs2.17 crore procured without compatible ammunition; without ensuring requisite specifications; and without assessing requirement led to idle expenditure.
Irrigation
Non-release of funds by the State Government despite availability of Central funds and funds from the Rajasthan Government resulted in blockade of Rs123.09 crore funds and denial of intended benefits to the farmers.
Water Supply and Sanitation
Deficient planning led to irregular or excess expenditure of Rs14.84 crore on installation of Reverse Osmosis Plants. Rs4.25 crore was incurred on 37 RO plants with ‘Zero penetration level’. 19 ROs involving Rs1.62 crore were found non-functional.
Welfare of SC, BC
Financial assistance, under Shagun scheme, was provided to 1,06,393 beneficiaries with a delay ranging between 12 to 48 months. Funds of Rs3.03 crore under incentive to girls for secondary education scheme could not be disbursed to beneficiaries. Central assistance of Rs12.11 crore was not utilised during 2010-14 under Rajiv Gandhi scheme for empowerment of adolescent girls-SABlA.