Auditor slams government’s use of contingency funds

The Comptroller and Auditor General of India (CAG) has passed severe strictures on the state government saying that funds meant for contingency plans were used meagerly and improperly. It has also said that some of the contingency fund expenditure was irregular.

In its report on state finances, the CAG has said that during the year 2014-15, contingency funds were not used appropriately. There was meagre use of contingency funds earmarked for purposes like natural calamities, forestry and wildlife (revenue and forest department), education, sports, art and culture (school education and sports), major and medium irrigation (water resource), social services (urban development) and other administration services (co-operation, marketing and textile), said the report.

According to the report, in nine sections, the actual expenditure of Rs 553.75 crore ranged between zero and 96 per cent of the sanctioned amount. The fact that in three out of 11 sanctions, advances amounting to Rs 11.03 crore was not drawn by the departments concerned indicated the funds were not of an emergency nature.

In some of the cases, the contingency funds were spent on purposes that they were not meant for, said the report.

During 2014-15, of the 11 sanctions issued by finance department for an amount of Rs 4,370.21 crore, eight withdrawals amounting to Rs 559.45 crore were made from the fund. In three cases, the nature of expenditure for which the departments concerned had obtained advances from the fund were foreseeable. Therefore, the withdrawals of the contingency fund were irregular.

The three cases are the construction of memorial of Hindkesari Pahalwan late Shri Maruti Mane at his birthplace Kavathepiran in Sangli, various administrative expenses for the office of State Co-operative Election Authority and expenses of the Enquiry Committee regarding allotment of flats under discretionary quota, said the report.