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Journalism of Courage
The Public Accounts Committee on Friday pulled up the Finance Ministry for incurring excess expenditure and asked it to overhaul the budgetary mechanism to plug various loopholes.
“…the existing budgeting mechanism still suffers from various loopholes and lacunae which require urgent and proper attention and corrective action,especially from the Ministry of Finance,” said the seventh report of the Public Accounts Committee (PAC) which was tabled in Parliament Friday.
The PAC,headed by Jaswant Singh,further said the ministry should overhaul its budgetary mechanism in such a manner that other ministries and departments could take a cue from it and effectively replicate the same.
The committee also noted that the Finance Ministry has incurred an excess expenditure of Rs 759.75 crore in 2001-02 which rose to Rs 96,784.09 crore in 2005-06,before sliding to Rs 98.24 crore in 2007-08.
The panel further said that the ministry should delve further towards making the mechanism of estimating supplementary demands more realistic and pragmatic to ensure accurate projection while maintaining fiscal discipline.
“The committee notes with grave concern that out of 16 cases of excess expenditure,Rs 222.16 crore in 12 cases of grants/appropriations were incurred despite obtaining supplementary grants of Rs 2,729.49 crore,” it added.
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