The Comptroller and Auditor General (CAG) has criticised the state government in Andhra Pradesh for its budgeting process and financial management.

The criticism comes just days after Chief Minister N. Kiran Kumar Reddy said that the observations made by the CAG are `not scriptures'. He has said that CAG reports must not be seen as the ultimate outcome, adding that CAG finalised reports even before receiving the replies/clarification from the government over the queries. He said that CAG is likely to drop specific observations after receving replies form the state government.

In its new report on the state finances for 2011-12, the CAG pointed out that the state government is not utilising the allotted funds and this has resulted in an increase in project costs in the state without desired results. The CAG also criticised the government's spending in sectors including health and education and also said that the government should consider re-prioritisation of the outlay for these sectors.

The report by the comptroller on State Finances was presented in the Legislative Assembly Andhra Pradesh today. The report has been prepared by Principal Accountant General Vani Sriram and it lists 228 major projects that remained incomplete beyond their due period in the state.