CAG for restructuring of government's accounts

Government of IndiaGovernment's auditing regulator, the Controller and Auditor General (CAG) has pointed out some serious fallouts in the accounts of some government departments. CAG, in a report on government's accounts for 2007-08, tabled in parliament on Friday, holds responsibility to the finance secretary and the expenditure secretary for the report preparation and anomalies.

The report by CAG, pointing misuse of funds, maintains, "Union Government made a provision for transfer of central plan assistance of Rs51,259 crore directly to state/district level autonomous bodies... for implementation of centrally sponsored schemes."

These funds have not been spent seriously by implementing agencies leading to some unspent amount in the accounts.

The body asked for the restructuring of government accounts for proper use of aid given by center government to states for flagship schemes and development projects. The report further maintains, "Rs 20,273.52 crore under 28 major heads of accounts was classified under the minor head... this indicates a high degree of opaqueness in the accounts."

CAG also pointed out discrepancies in the accounts of some public sector companies and defense department.

The report says, "The government expenditure as reflected in the Union Accounts to that extent is, therefore, overstated."

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