8 holes CAG picked in Narendra Modi’s Gujarat development plan 1.At a time when Narendra Modis development model is under national spotlight, the Comptroller and Auditor General (CAG) has criticized his government in Gujarat for imprudent fiscal management. It has underlined a need for greater professionalism and accountability in the functioning of the government and asked it to be more alert and responsive. 2.Poor debt management The national auditor has said the state government has incurred 41% higher debt than the previous fiscal and burdened the exchequer with heavy interest liability at a higher rate. The state government had taken a loan of Rs 15,083 crore to adjust the monetary deficit of Rs 11,027 crore, leaving a balance of Rs 3,645 crore, which is poor debt management, said CAG. 3.Average return on investments It has invested Rs 39,179 crore in corporations, boards, government companies, rural banks and joint ventures. In the last five years, the average return on this investment was 0.25% while the state government has paid interest at the rate of 7.75%. 4.Utilization certificate The CAG report, which is likely to be tabled in the ongoing session of the state assembly, also criticized the government for not furnishing utilization certificate of Rs 9,066.34 crore. 5.On education and health The CAG has also observed that compared to other states, Gujarat traditionally spends less on education and health. Though, in 2011, the amount spent on health was adequate. 6.On computer literacy and education CAG has also ridiculed the government on computer literacy and education — Rs 292 crore was allocated but only Rs 88.24 crore was used. Similarly, for special courts, Rs 629 crore was granted, but only Rs 252.45 crore was used. 7.Wide variation under every major head of account In the roads and buildings department, Rs 957.95 crore was allocated for constructing offices, but not even half the amount was spent for various reasons. Sighting many such examples, CAG has observed that there is wide variation, practically under every major head of account. 8.Finance and public sectors least efficient Although the entire state government has been criticized, the finance and public sectors have been shown as least efficient. For example, savings under each major heads clearly suggest non-performance of government departments, for which no reasons have been given. economictimes.indiatimes/slideshows/economy/8-holes-cag-picked-in-narendra-modis-gujarat-development-plan/slideshow/19119213.cms
Posted on: Mon, 10 Mar 2014 08:51:38 +0000
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