CAG pulls up AP govt over fiscal management

The Comptroller and Auditor-General (CAG) has raised strong objection to the financial management in the state and found fault with the for allowing lapse of funds of Rs 6,356 crore given by the Centre.

“As against the government of India guidelines to transfer ‘pass-through’ grants given for implementation of various centrally sponsored schemes to single nodal account pertaining to those schemes, the state government has lapsed unutilised funds of Rs 6,356 crore to the consolidated fund of the state as reduction of expenditure,” said the CAG.

During 2021-22, the state government lapsed the funds by not spending 26,380 crore to state’s consolidated fund which reduced Revenue Deficit and Fiscal Deficit from the previous year. It also lapsed the Finance Commission recommended Health-sector”>Health sector grants to the tune of 488.15 crore given by the Centre.

The CAG report said the action of the state government in lapsing the funds were in violation of the government of India’s guidelines and also led to revenue deficit while creating an interest burden of 11.33 crore.