Civil audit report made public; commercial audit reports of govt agencies soon

"Gujarat should set up a separate internal audit department to strengthen its internal audit process," said Niranjan Pant, principal accountant general, Gujarat. After presented in the state assembly, the civil audit report of Gujarat government by CAG was made public on Thursday. Pant emphasised the need of making government departments more responsive. He also said that commercial audit report of government's several agencies will soon be sent to state government and eventually made public after being tabled in assembly.

The external audit, while lauding Gujarat for achieving revenue and fiscal deficit targets, pointed out irregularities in transactions by several departments. The financial position of the state, measured in various deficits — revenue, primary and fiscal — significantly improved in 2007-08, compared to its previous year's standing.

But the rising fiscal liabilities may undermine the gains. The CAG report says that the improved fiscal position has been spurred by the growth in own tax revenues, which contributed around 73% of the incremental revenue receipt during 2007-08. The report raises concern over the rising fiscal liabilities and the negligible rate of return on government investment.

The report has also pointed out the inordinate delay in irrigation projects, which resulted in huge costs and time overruns.

CAG checked and assessed various departments and their accounts revealed instances of various irregularities to the tune of Rs104.13 crore. The irregularities also included expenditure of Rs38.52 crore in Narmada, water resources, water supply and Kalpsar departments. The Narmada department had spent Rs29.15 crore more on construction of head-works of Utavali-Gunda water resources project. Cases of violation of contractual obligationundue favour to contractors involving Rs35.92 crore were noticed in Narmada, water resources, water supply and Kalpasar departments. This included a case of unauthorised financial aid to the contractor by releasing excess amount of Rs28.41 crore ignoring contractual obligation.

CAG checked and assessed several departments and their accounts revealed instances of various irregularities to the tune of Rs104.13 crore

DNA Correspondent/ DNA-Daily News & Analysis Source: 3D Syndication