Prepare more realistic Budget estimates, CAG tells Delhi government

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New Delhi, March 10 (IANS) The CAG has pulled up the Delhi government over its over-budgeted estimates in 2015-16 and disproportionately higher expenditure in the last quarter of the year, calling it “a breach of financial propriety”.

The Comptroller and Auditor General (CAG) made the remarks in its report on state finances for the fiscal 2015-16, tabled in the assembly on Friday.

It recommended to the city government to devise a suitable mechanism to “avoid rush of expenditure in the last quarter and the last month of the financial year”.

The auditor also asked the government to improve its budgeting process and ensure more realistic Budget estimates.

“Against a total provision of Rs 42,809.39 crore during 2015-16, an expenditure of Rs 35,434.86 crore was incurred, which resulted in savings of Rs 7,374.53 crore (17.23 per cent),” the report said.

It noted that such large-scale savings indicate that estimates were not prepared after adequate scrutiny of the projects and schemes.

On rush of expenditure during the last quarter of the fiscal, the CAG report pointed out that the expenditure incurred by various departments in March 2016 and the last quarter of 2015-16 ranged between 51.27 per cent and 100 per cent of the total expenditure.

“…rush of expenditure particularly in the closing months of the financial year is regarded as a breach of financial propriety and should be avoided,” it said.

The report added the reasons for disproportionately higher expenditure were awaited from the government.

–IANS

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