CAG criticizes Tripura on fund mishandling

Headlines Vol. 3 Issue No. 47

April 15-30, 2008

CAG criticizes Tripura on fund mishandling

While the Comptroller and Auditor General (CAG) report 2007 has criticized the Tripura Government on mishandling of funds sanctioned by the Centre, State Finance Minister Badal Choudhury stressed that the Reserve Bank of India has praised the internal economic policy and financial management of the State.

The report has stated that the government has failed to utilize Rs 1.6 crore for development of poultry and other types of cattle breeding and farming. It mentioned that the government had failed to utilize the money sanctioned for the animal resource department in 2003, adding that the State had sought an extension of time for utilization of the same but failed to do so.

Besides, the State Government had earlier lost an interest of Rs 8.24 lakh from banks due to lack of vigilance of treasury department. The CAG report further stated that violation of financial rules and administrative inaction has led to non-realization of Rs 10.28 lakh of composite fee.

Of the 2622 utilization certificates (Ucs) due in respect of grants and loans aggregating to Rs 185.78 crore paid up to 2006-07, about 195 Ucs for Rs 51.16 crore were in arrears till August 2007, the report added.

It also said the interest payments in 2006-07 increased by 4.74 per cent to Rs 388.17 crore, mainly due to internal debt of Rs 233.58 crore and interest on state provident funds of Rs 103.79 crore, but the overall percentage of interest payment with reference to revenue receipt decreased to 11.65 per cent due to the impact of Debt Swap Scheme implementation, the CAG revealed.

However, the State’s fiscal liabilities had increased from Rs 3127 crore in 2002-03 to Rs 4626 crore in 2006-07, the annual growth rate ranging from 4.64 to 17.31 per cent due to increase in internal debt by Rs 151.08 crore.

But the State Finance Minister insisted that the financial status of the ruling Left Front can be a model before the country, as the government has neither taken a single overdraft since 1998 nor took any advance to pay the salaries to its employees for the past 44 months. Clearing doubts over the supplementary demands for grants of Rs 548.71 crore that was placed in the Assembly on March 17, Mr. Choudhury advocated that it was placed to ensure continuation of the development activities in the State. He, however, stated that the Planning Commission had sanctioned Rs 1266.28 crore against its approved allocation of Rs 1370.15 crore besides the State Government had received less allocation in different Central schemes and added that even the allocation under the externally aided scheme was not satisfactory. In Japan Bank for International Cooperation (JBIC) project, Rs eight crore has been sanctioned against its approved outlay of Rs 120 crore for next fiscal, he said, adding this has prompted the state government to seek supplementary demands for grants. Pointing out the developmental projects of the State, Choudhury asserted that altogether 15.49 lakh people had been covered by pure drinking water facilities through pipelines. Besides 120 deep tube-wells will be installed in 2008-09, including 50 river based water supply projects, 150 iron removal plants, 10 overhead water reservoirs and 1000 numbers of tube-wells will be set up across the state by 2010, he stated, adding 17 more laboratories would be set up this year to test the water quality.

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