Comptroller and Auditor General (CAG) of India report has detected that four state undertaking companies- Nagaland Industrial Development Corporation Ltd (Rs. 8.39 crore), Nagaland Industrial Raw materials and Supply Corporation Ltd (Rs. 4.05 crore), State Mineral Development Corporation (Rs. 81.51 crore) and Nagaland Handloom and Handcrafts Development Corporation Ltd (Rs. 2.82 crore) have incurred losses of Rs. 96.77 crore. This was revealed by CAG in its report on State finances for the year ended March 31, 2015, which was tabled in the Assembly Saturday by chief minister T. R. Zeliang, who also hold the finance portfolio.
CAG pointed out that average returns of the state government investment of Rs. 278.44 crore in Statutory Corporations, Rural Banks, Joint Stock Companies and Co-operatives at the end of March 2015 was nil during the last five years.
As per the report, out of total government investment of Rs. 278.44 crores at the close of the current year, Rs. 190.48 crore was invested in five government companies (Rs. 105.57 crore), distillery project (Rs. 0.30 crore) and public sector and other undertaking (Rs. 84.61 crore).
The remaining amount of Rs. 87.96 crore was invested in two joint stock companies (Rs. 32.11 crore) and statutory corporations, co-operative bank and co-operative societies etc (Rs. 55.85 crore) and during the current year, the government made additional investment of Rs. 8.40 crore in state mineral development corporations (Rs. 6.93 crore) and public sector and other undertakings (Rs. 1.50 crore).
The report revealed that out of five government companies in the state, one company, Nagaland Sugar Mills Ltd (Rs. 7.29 crore-investment upto 2001-02) was in arrears for 37 years. CAG also detected that owing to non-submission of 104 Utilization Certificates (UC) involving an aggregate amount of Rs. 217.65 crore was pending for submission even after a lapse from a year to five years till March 31, 2015 from various 11 departments. The report also observed that as on March 31, 2015, 34 cases of misappropriation, defalcation etc. involving Rs. 616.31 crore in 15 departments were pending for finalization and said the accounts of autonomous bodies/authorities and departmental commercial undertakings need to be finalized at the earliest.
As per the report, financial rules stated that for the grants provided for specific purposes, UCs should be obtained by the departmental officers from the grantees and after verification, these should be forwarded to the Accountant General (Accounts & Entitlement) within 12 months from the date of their sanction unless specified otherwise.
However, CAG revealed that out of the 629 grants in respect of 11 departments aggregating to Rs. 830.33 crore paid up to 2014-15, 104 UCs for an aggregate amount of Rs. 217.65 crore were in arrears.
CAG said in the absence of UCs it could not be ascertained whether the recipient had utilized the grant for the purpose for those which were given. The report also found 307 incompleted projects (at the estimated cost of Rs. 2881.53 crore and actual expenditure incurred Rs. 1319.87 crore as of March 2015) pertaining to 24 departments.
Out of the 307 incompleted projects, 213 projects (estimated cost Rs. 1990.40 crore and actual expenditure Rs. 863.09 crore) were due to be completed by March 2015 but remained incomplete as of October 2015 and two projects (estimated cost Rs. 10.93 crore and actual expenditure Rs. 8.63 crore) taken up under PWD (R & B) had been suspended without completion.
The report also stated that development expenditure of Rs. 3254.56 crore in 2010-11 had increased to Rs. 4491.58 crore in 2014-15, however its share in aggregate expenditure had shown a fluctuating trend during 2010-15 and the ratio of development expenditure as a proportion to aggregate expenditure had decreased by 0.44 % in 2014-15 as compared to the previous year.
On the overview of funds transferred, CAG pointed out that during 2014-15, an approximate amount of Rs. 122.99 crore was directly transferred by Government of India the State implementing agencies. On salaries and wages, the report said that expenditure on salaries under non-plan and plan during the current year was Rs. 3165.57 crore and Rs. 108.58 crore respectively.
The expenditure on salaries increased by Rs. 1240.23 crore from Rs. 2033.93 crore in 2010-11 to Rs. 32.74.16 crore in 2014-2015 and was Rs. 1701.97 crore more than the projection made by the 13th FC (Rs. 1572.19 crore). Expenditure increased by Rs. 333.36 crore over the previous year mainly due to release of dearness allowance instalments and incremental benefits, CAG added.
Under pension payment, expenditure increased by Rs. 210.04 crore from Rs. 695.11 crore in 2013-2014 to Rs. 905.15 crore in 2014-2015.
Under financial management and budgetary control, the overall saving during the year was Rs. 2892.61 crore only and the amount surrendered was Rs. 2908.24 crore (100.54 %) and also there was an excess expenditure of Rs. 38.78 crore in nine 9 grants during 2014-15, the report said.
The report further stated that budgetary controls should be strengthened in all the government departments particularly in the departments where savings/excess persisted for last five years. It also suggested rigorous monitoring mechanism be put in place by the DDOs to adjust the abstract contingent bills within 60 days from the date the amounts are drawn.