Rs385.58 crore under Local Area Development funds unspent: CAG

Over Rs350 crore allocated under Local Area Development funds have remained unused due to delayed submission of the proposals by legislators in Uttar Pradesh, a CAG report says.

This has come to light in a Comptroller and Auditor General of India (CAG) report which audited the performance of the Local Area Development Funds of legislators between 2005-10.

The report revealed that by March 2010, Rs385.58 crore remained unspent in Personal Ledger Accounts (PLA) while Rs11.36 crore were also deposited in Centre's revenue accounts due to delayed submission of proposals by legislators.

Due to delay in recommending the projects by the legislators, their sanction by the district rural development agencies and execution by implementing agencies, a substantial number of projects spilled over, it said.

During the audit period (2005-10), legislators utilised Rs2,716 crore while 15,346 projects costing Rs461.71 crore were completed but not handed over to the local bodies for their upkeep.

The amount of grant for each legislator was Rs1.25 crore (upto 2006-07).

Also, the report found that there were variations in the accounts maintained by the Commissioner, rural development and district rural development agencies as the balances were carried forward either short or excess with the net short accounting of Rs29.31 crore.

Sanction to works did not relate to the locally felt needs, it said adding that out of Rs815.56 crore, a majority of 82 per cent (Rs669) crore were spent on roads and school buildings.