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CAG: Rs 25,000 cr of ‘Illegal Deals’ in Gujarat
CAG: Rs 25,000 cr of ‘Illegal Deals’ in Gujarat. Notwithstanding the tall development and financial management claims of the state, the Comptroller and Auditor General of India (CAG)\'s five audit reports on the last leg of Narendra Modi\'s rule as the Gujarat Chief Minister have fished out disputed transactions worth Rs 25,000 crore, which point to fiscal profligacy and a rising debt burden.
Modi’s rule under scanner
State wrongly booked expenditure of Rs 881 crore on account of grant-in-aid and expenditure of Rs 202.27 crore on subsidy resulting in overstatement of revenue surplus to the tune of Rs 1088.57 crore
Surat: Notwithstanding the tall development and financial management claims of the state, the Comptroller and Auditor General of India (CAG)'s five audit reports on the last leg of Narendra Modi's rule as the Gujarat Chief Minister have fished out disputed transactions worth Rs 25,000 crore, which point to fiscal profligacy and a rising debt burden.
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Among several other things, the CAG has questioned the Gujarat government's claim of a Rs 5,570 crore revenue surplus during 2012-13 and described it as overstated.
The CAG reports were tabled on the last day of the State's budget session in the assembly, with the entire Opposition being suspended from the House before it staged a walk-out.
The CAG report states: "The Gujarat government wrongly booked expenditure of Rs 881 crore on account of grant-in-aid and expenditure of Rs 202.27 crore on subsidy resulting in overstatement of revenue surplus to the tune of Rs 1088.57 crore".
The report says that cheques worth Rs 2,667 crore were not cashed at all as of March 31, 2013, and that led to overstatement of expenditure.
Mounting debt
Similarly, the auditing watchdog points out that the State's fiscal liability (or debt burden) which was around Rs 50,000 crore during the BJP-ruled Keshubhai Patel regime rose astronomically after the Narendra Modi government took charge.
"It rose to Rs 1.05 lakh crore in 2008-2009 and is Rs 1.66 lakh crore in 2012-13," according to the CAG.
The auditor warns that increasing fiscal liabilities may lead to an unsustainable debt in the medium to long term.
Coming down heavily on the State's management of its finances, the CAG has also brought to light irregularities in the form of non-or short levy, short realisation, under-assessment of loss of revenue, incorrect computation, concealment and suppression of turnover worth Rs 5,411 crore over the last five years.
