CAG points on excess expenditure by Telangana government

According to theControllerand Auditor General (CAG) report for the fiscal year ending 2020, the has been incurring excess expenditure over authorization for the last few years, which is cause for concern.

While thelegislaturehas yet to approve an excess expenditure of Rs 84,650 crore incurred over the last five years, Approximately Rs 2,084.03 crore was spent without budgetary provision in 2019-20, undermining the authority of the State Legislature,CATsaid. During the period 2016-19, utilization of budgetary provisions under four socioeconomic grants was less than 50% of the allocation, affecting socioeconomic development in the state.

The CAG also pointed out that due diligence was not performed for the withdrawal of advances from the contingency fund. These advances were also not fully utilized for the intended purpose, nor were they fully repaid within the fiscal year.

During the fiscal year 2019-20, Revenue Receipts increased marginally by Rs 1,124 crore (1.11%), while Revenue Expenditure increased by Rs 11,715 crore (12.07%) over the previous year. Over the previous year, committed expenditure on interest payments increased by Rs 1,800 crore (14.30%). During 2019-20, the State continued to spend less on Education and Health.