The Union Territory government has given inadequate priority to the developmental expenditure in 2010-2011 with the percentage of aggregate expenditure decreasing from nine per cent in 2009-2010 to eight per cent in 2010-2011, while capital expenditure had increased by `2 crore in 2010-2011 as compared to 2009-2010.
The report of the Controller and Auditor General of India (CAG) on the UT’s finances for the years 2010-2011 observed that the arrears of revenue pending had increased to `425.03 crore in 2010-2011 (24.26 per cent), which constitute 23.39 per cent of the UT’s own resources and was more than the revenue deficit for the year by `84.93 crore. During that year revenue receipts grew by 13 per cent whereas expenses grew 15 per cent.
Moreover, Government of India directly transferred `60.46 crore to the UT, for the implementation of various schemes and programmes. As these funds were not routed through the UT budget, the annual finance accounts have not captured the flow of these funds. Also, the receipts of expenditures of the UT as well as other fiscal variables and parameters derived were underestimated, observed CAG report.
The outstanding fiscal liabilities increased from `3,887 crore in 2009-2010 to `4,588 crore in 2010-2011 (18 per cent hike) which constitutes 35 per cent of Gross State Domestic Product.
There had also been large scale delaying in furnishing of certificates for various guarantee institutions for grants-in aid of `401.41 crore. The delaying ranged from one to more than nine years .Thirty autonomous bodies and authorities had not submitted to the audit their annual accounts due for the period up to September 2009-2010.
The CAG also noted that expenditure was less than 50 per cent of the provisions with respect to 11 schemes, and no expenditure was incurred for 28 schemes. Provision of funds through re-appropriation at the fag end of the financial year, despite availability of funds at the budget and supplementary stages, had led to non-implementation of schemes.
Substantial surrenders of provisions (more than 59 per cent) were made in 44 sub-heads on accounts of either non-implementation or slow implementation of schemes and programmes. Out of a total provision of `693.45 crore in these 44 sub-heads, `548.29 crore (79.05 per cent) were surrendered, which included cent percent surrender under 21 sub-heads (`144.78 crore). This is due to shortfall in obtaining negotiated loans for funding the plan schemes.
In 122 sub-heads, the expenditure aggregating `771.98 crore exceeded the approved provision by 50 lakh or more resulting in excess expenditure of `402.68 crore for the UT.
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