CAG flags govt’s failure to submit utilisation certificates for ?1.33 lakh crore grants

Ranchi: The Comptroller and Auditor General of India (CAG) has reported that the Jharkhand government failed to submit utilisation certificates (UCs) for central assistance worth ?1.33 lakh crore within the prescribed timeline. The state also did not provide detailed expenditure accounts for ?4,891.72 crore withdrawn in advance from the treasury.

Three CAG reports were tabled during the monsoon session of the Jharkhand Assembly, including one on the state’s finances for the fiscal year ending March 31, 2024. According to the audit, the state was required to submit 47,367 UCs for the grants but missed the deadline.

The report also revealed a steep decline in central grants over the last four years. In 2019-20, Jharkhand received 21.06% of its funds as central assistance, but this dropped to 10.40% in 2023-24. During the same year, the state received only ?6,266.71 crore under centrally sponsored schemes.

The CAG observed that while the treasury system allows advance withdrawals to meet urgent expenses, the government is required to submit detailed expenditure accounts within two months. However, the state has not yet submitted details for ?4,891.72 crore withdrawn in advance.

Despite these lapses, the state’s economy showed signs of improvement. Jharkhand’s Gross State Domestic Product (GSDP) grew by 10.46% in 2023-24 compared to 2022-23. Total revenue rose by 9.57%, while revenue from the state’s own sources increased by 11.49%. Expenditure, however, jumped by 19.58%, with revenue expenditure up by 14.99%.

The state’s fiscal deficit has also improved, falling from 2.59% of GSDP in 2019-20 to 1.37% in 2023-24, staying well within the 3% cap mandated under the FRBM Act.