Government gets CAG lash for lapse-ridden schemes

V L Srinivasan
Hyderabad, Dec 8

In a severe indictment of the State Government’s performance, the Comptroller and Auditor General (CAG) of India has found lapses in the implementation of several schemes, including the Centrally- funded MP Local Area Development Scheme (MPLADS) and Mid-Day Meals (MDM) Scheme.


In its report for the year 2007-08, which was tabled in the State Assembly today, the CAG said though the financial position was that of a revenue surplus for the second successive year, the fiscal situation was not all that rosy when compared to the previous year’s.

‘‘Revenue surplus declined from Rs 2,807 crore in 2006-07 to Rs 159 crore in 2007-08 mainly on account of providing Rs 2,071 crore to APTransco to discharge its committed liability on special power bonds under securitisation,’’ the report said. As against the total budget provision of Rs 88,450.56 crore, the expenditure was Rs 75,341.04 crore and there was an excess expenditure of Rs 201.30 crore under seven grants and three appropriations requiring regularisation by the State Legislature, the report said.

MDM SCHEME: The CAG said the Performance Audit of the scheme revealed that student enrolment figures were inflated while seeking allotment of rice from the Centre resulting in excess lifting and huge accumulation of surplus stocks with the AP State Civil Supplies Corporation. ‘‘In preparation of meals, the Fair Average Quality (FAQ) of foodgrains was not monitored and infrastructure not provided. While 22 percent schools did not have drinking water facility, 67 percent had no kitchen sheds, 84 percent no gas connections and utensils were not provided to any of the schools in the eight districts surveyed by the CAG,’’ the report said.

Though the Centre released Rs 1,702 crore for the scheme between 2003 and 2008, only Rs 1,003 crore was spent. ‘‘About 95 percent of the amount meant for construction of kitchen sheds was not spent and no system was in place to cross-verify the figures of enrolment and attendance furnished by the schools,’’ the report said.

Even implementation of the Member of Parliament Local Area Development Scheme (MPLADS) in five District Rural Development Agencies (DRDAs) came under the scanner for irregularities like non-commencement of works, diversions and irregular payments involving Rs 69.77 crore. Funds to the tune of Rs 43.86 crore were parked in fixed deposits for periods ranging between one month and four years in violation of guidelines that they be kept in savings bank accounts in nationalised banks so that the works are completed expeditiously.

PRISONS: The Prisons Department had failed to comply with financial rules and code provisions resulting in under-realisation of revenue, and ‘‘no control existed’’ for operation of the AP Prisons Development Board Fund, it noted.

‘‘Even the state-level Security Review Committee has failed to meet since 2001,’’ the report said.