CAG eye on Assam government over pension for families of deceased employees

The (CAG) has asked the Assam government to review the Compassionate Family Pension (CFP) scheme as it not only defies legal principles but also has put an estimated additional financial burden of Rs 156.91 crore per annum on the state exchequer.

The State Government has not asked for separate budget allocation for the CFP scheme and by booking the entire expenditure under ‘pension’ has violated budget and accounting rules applicable to a new scheme, the CAG said in its report for the year 2019 that was tabled in the ongoing budget session of the assembly.

The financial outgo under the scheme, introduced in April 2017, has been Rs 171.55 crore so far and audit has estimated an additional financial burden of Rs 156.91 crore per annum on the state exchequer.

Besides, the state government has extended the benefits of the CFP scheme to cover officers of the All India Services (AIS), whose pension and family pension is borne by the Centre, without consulting the latter, the CAG said.

Moreover, in the wake of the COVID-19 pandemic and the high rate of positive cases as well as mortality rate, the financial burden on the state exchequer may increase to an unbearable proportion in the years to come, the report pointed out.