The Comptroller and Auditor General of India (CAG) has raised serious concerns over the condition of finances of the Bihar government. The government auditor in its report for FY 2011-12, which was tabled on Tuesday in the state assembly, has pointed towards the slow progress of social and development programmes and the rising tendency of withdrawal at the end of the financial year.
CAG, in its report, has stated, "Slow progress in implementing various social and development programmes in the state has left an overall savings of Rs 15,595.72 crores. The major savings occurred in Education Department (Rs 2,258 crores), Panchyati Raj Department (Rs. 1,120 crores), Energy Department (Rs 871 crores), Urban Development and Housing Department (Rs 713 crores) and Health Department (Rs 528 crores). The reasons have not been intimated by these departments and in many cases the savings were not surrendered or belatedly surrendered, living no scope for utilising these funds for other development funds." It has lambasted the Building Construction Department for being ill equipped to utilise funds as it had to surrender almost 63 percent of its provision.
Moreover, it has also indicated towards the meager rate of return on government investments. During FY 2011-12, the state government invested Rs 967 crores in its eight companies or corporations, but their total loss for the year was more than Rs 1,365 crores. Similarly, in 15 government companies or corporations with an investment of Rs 243 crores, there was loss of Rs 215 crore. CAG has recommended the state government to draw up a road map for winding up of non working state PSUs.
CAG report has also indicated towards the problem of withdrawal through Abstract Contingency (AC) bills without submitting Detailed Contingency (DC) bills. The report says, "As on 31st August, 2012, 66,847 DC bills for an amount of Rs 18,797 crore were pending for submission to AG. Majority of these bills are pending for more than 5 years." However, the state government claims that it has made considerable progress during last six months. "We have worked very hard in this regard. As of April 1, we have pending DC bills for only 5,451 crores," said Sushil Kumar Modi, Deputy Chief Minister of the state. Utilisation Certificates (UCs) for grants worth Rs 7,839 crore were outstanding for submission as on March 31, 2012.