In an apparent breach of financial regularity, several of government departments ‘rush’ expenditure to meet the budget targets.
A recent report of Comptroller and Auditor General has observed that 16 heads of accounts under the state government made 51 per cent to 100 per cent of the total expenditure for fiscal year 2017-18 in month of March.
This comes to reflect upon tendency of several departments to utilise the budget to meet the fiscal targets rather than the necessity.
“The financial rules stipulate that rush of expenditure particularly in the closing month of the financial year should be regarded as breach of financial regularity and should be avoided,” states the report.
Even as the sixteen heads spent more than 51 per cent in the last month, the other departments too reflected upon the tendency. Of the budget allocation for the financial year, around 27.8 per cent of the revenue expenditure (Rs 11,588 crore) and 35.92 per cent of the capital expenditure (Rs 7,356 crore) was made in month of March 2018.
The last day of March recorded revenue expenditure of more than Rs1,500 crore (3.73%) and capital expenditure of Rs775.58 crore (3.79%).
Displaying further financial activeness in the month, the state government also transferred Rs4,035 crore nearly 6.49 per cent of total revenue and capital expenditure to the personal deposit accounts. Despite the March rush and excess expenditure, several of the budget targets remain pending.
Short Of Target
The fiscal responsibility and budget management (FRBM) act targets were not met during the fiscal year as the actual expenditure exceeded the budget provision. Revenue deficit of Rs 18,534 crore rupees (2.21% of GSDP) was recorded during the year and fiscal deficit of Rs 25,341 crore (3.02 % of GSDP) was slightly above the prescribed target.
What Cag Says
The CAG report states that while it is desirable to use borrowed funds for creation of capital assets, Rajasthan has spent less on its capital accounts in proportion to borrowed amount. Of Rs28,557 cr borrowed during the financial year only Rs 20,623 crore were spent on capital account and Rs 7,934 crore was used to meet the revenue deficit.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Secretariate")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}