
A report by the Comptroller and Auditor General CAG of India for the last fiscal 2006-07 shows financial irregularities continue to plague administration in Bihar. Audit of financial transactions in various state departments has unearthed irregularities to the tune of more than Rs 175 crore that include fraudulent payments. The irregularities have been noticed in crucial departments like road construction, rural development and rural engineering.
8220;Audit of financial transactions, subjected to test-check, in various departments of the Government and their field functionaries revealed instances of fraudulent payment, misappropriation, loss, doubtful, unfruitful, excess, idle, irregular, wasteful, infructuous, avoidable expenditure and misutilisation of Rs 175.67 crore,8221; the civil audit report of the CAG says.
Though the report talks about a marked improvement in the fiscal position of the state under the changed regime, it underlines that it was primarily due to a steep increase in central tax transfers and grants-in-aid from the Centre. The report says that contributions of central tax transfers and grants-in-aid were 27.6 per cent and 57.4 per cent, respectively.
8220;A turnaround in fiscal position in 2006-07 was primarily due to steep an increase in central tax transfers and grants-in-aid from the Government of India over the previous year,8221; the report says.
Asked whether the report could be viewed as a the first report on the performance of the Nitish Kumar Government, Principal Accountant General Arun Kumar Singh said: 8220;Though the audit covers a period of five years, most of the cases relate to 2006-07.8221;
Audit of revenue receipts too indicts the state government severely as it mentions that it could raise only 20 per cent of the total revenue and adds that it incurred a revenue loss to the tune of over Rs 607 crore.