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This is an archive article published on January 4, 2023

Report by CAG body slams govt’s unnecessary supplementary grants

“An avoidable extra provision in an estimate is as much a budgetary irregularity as an excess in the sanctioned expenditure," the report noted.

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Unnecessary supplementary grants are budgetary irregularities, the report of the Principal Accountant General (Accounts and Entitlement) – I, a body under the Comptroller and Auditor General of India, has said on out of regular budget funds from the previous fiscal.

Incidentally, the report was tabled on December 30, 2022, during the Winter Session of the state legislature where the Eknath Shinde-Devendra Fadnavis government presented the highest-ever supplementary demands worth Rs 52,327 crore for 2022-23. According to the Finance Accounts and Appropriation Accounts of Maharashtra government, supplementary grants worth Rs 23,142.25 crore proved to be unnecessary in 2021-22.

“An avoidable extra provision in an estimate is as much a budgetary irregularity as an excess in the sanctioned expenditure,” the report noted.

It added that major defaulting departments that had not submitted utilisation certificates (UCs) during 2021-22 are urban development (Rs 13,645.33 crore), school education and sports (Rs 7,750.21 crore), planning (Rs 4,723.17 crore), rural development and water conservation (Rs 3.029.19 crore) and tribal development (Rs 2.220.48 crore).

As per Bombay Financial Rules, 1959, UCs in respect of grants-in-aid received by the grantee should be furnished to the authority that sanctioned it within 12 months from the date of receipt of grant or before applying for a further grant, whichever is earlier. To the extent of non-submission of UCs, there is a risk that the amount shown in finance accounts may not have reached the beneficiaries.

The report noted that Maharashtra had a revenue deficit of Rs 16,374.32 crore while the state’s fiscal deficit was Rs 64,301.86 crore (2.01 per cent of Gross State Domestic Product of Rs 31,97,782 crore). During the Covid-19 pandemic, the revenue deficit was Rs 41,142 crore in 2020-21.

The state, however, registered an improvement in its total public debt despite an increase to Rs 4,83,035 crore in 2021-22, which was 15 per cent of the Gross State Domestic Product (GSDP) in comparison to the previous fiscal when the public debt of Rs 4,28,482 crore – 16 per cent of the GSDP. Maharashtra also showed improvement in collection of Sales Tax/VAT (Rs 45,924 crore in 2021-22 compared to Rs 33,160 crore in 2020-21), state excise (increased to Rs 17,221 crore from Rs 15,089 crore) and taxes of vehicles (increase to Rs 9,080 crore from Rs 6,655 crore).

Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues. Expertise Current Role: Special Correspondent, The Indian Express, Mumbai. Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands'). Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including: State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance. Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana). Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides). Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits. Unique Credentials & Trustworthiness Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects. Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission. Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards. Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra. He tweets @alokdesh ... Read More

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