CAG asks AP to submit accounts for Central funds

Even as AP government is heading some non-BJP States against the terms of reference given to the 15th Finance Commission, the Comptroller and Auditor General (CAG) had asked the State to give accounts for the Central government funds received so far. The CAG had reportedly sent a letter to the State government two days ago, on which the State is now gets busy.

As the 15th Finance Commission is sets its tables right to work out the devolution of funds for the State for the next five years, the CAG had sent this shocker to the Andhra Pradesh, claiming that the State did not submit accounts for the Central funds so far. The CAG wanted the State to submit fresh statements from 2010-11 to 2018-19 for all the funds received under various heads by the State government.

The CAG also asked the state to give the accounts for the funds received under the external aided protects too. The government thus, would have to submit the accounts for all the loans it had received so far during this period and the rate of interest it had paid on the borrowings. The AP is said to be one of the States having highest borrowings, close to the Fiscal Regulation and Budget Management (FRBM) cap.

The State government, particularly after bifurcation, had been asking the Centre for relaxation on the FRBM sealing so as to enable it to go for additional borrowings. Though not created additional revenue sources in the state in the last four years, the State government wanted the Centre to give FRBM relaxations to fill the coffers and meet its expenses.

Interestingly, the CAG requirements have put the State in big trouble as the list of questions raised were long that included the government’s spending on projects, both the State’s own projects and the Central government sponsored projects, its proposed new projects, its expenditure on the disaster mitigation and the relief paid to the people under various calamities or project resettlements and rehabilitation.

The AP government, which had just completed the two-day marathon Collectors’ Conference, is now getting down to work to submit the reports to the CAG.

Be the first to comment

Leave a Reply

Your email address will not be published.


*