Audit Reports
Jharkhand
Report No. 1 of 2019 - State Finances, Government of Jharkhand for the year ended 31 March 2018
Overview
The Report of the Comptroller and Auditor General of India on the accounts on State Finance of the Government of Jharkhand for the year ended 31 March 2018, prepared under Article 151 of the Constitution of India was submitted to the Governor of Jharkhand on 23.10.2019. The report was presented to the Legislative Assembly on 21.09.2020.
A summary of important points highlighted in the Report is indicated below:
Chapter-1 is based on the audit of Finance Accounts and makes an assessment of the Government’s fiscal position as on 31 March 2018.
The State has not achieved revenue surplus, fiscal deficit and ratio of outstanding debt to GSDP targets of the budget estimates 2017-18 and Fiscal Responsibility and Budget Management Act.
Paragraph 1.1.2
The primary surplus of ₹ 358 crore in 2013-14 turned to a deficit of ₹ 7,271 crore in 2017-18 indicating that non-debt receipts were not sufficient to meet the primary expenditure of the State.
Paragraph 1.1.2.2
The Own Tax Revenue to GSDP ratio of Jharkhand was 4.84 per cent which was significantly lower than the ratio of the neighbouring states like Odisha, West Bengal and Chhattisgarh (6.71, 5.16 and 6.82 per cent respectively) whereas, it was slightly higher than the ratio of Bihar (4.74 per cent) during 2017-18.
Paragraph 1.3.1
Revenue receipts (₹ 52,756 crore) increased by ₹ 5,702 crore (12.12 per cent) over the previous year (₹ 47,054 crore) which was lower than the budget estimates (₹ 65,978 crore).
Revenue expenditure (₹ 50,952 crore) increased by ₹ 5,863 crore (13 per cent) over 2016-17, which was lower than the budget estimates (₹ 58,222 crore).
Capital expenditure (₹ 11,953 crore) increased by ₹ 1,092 crore (10.10 per cent) over 2016-17, which was lower than the budget estimates (₹ 12,742 crore).
Paragraph 1.1.3, 1.2 & 1.6
Ratio of Capital Expenditure to GSDP of Jharkhand (4.68) was significantly higher than that of West Bengal and Chhattisgarh (1.90 and 3.43 respectively). However, it was lower than the ratio of Bihar and Odisha (5.93 and 5.07 respectively).
Paragraph 1.6.1
Upto 2017-18, ₹ 393.67 crore was collected as Labour cess from contractors executing government projects. The cess collected has not been transferred to the Labour Welfare Board till March 2018.
Paragraph 1.3.5
Loans to Jharkhand State Electricity Board (JSEB) amounting to ₹ 7,222 crore continue to be depicted in the government accounts as receivable from the Board, even though the Board was unbundled in January 2014 into separate companies. Thus the assets of the State was inflated to the extent of ₹ 7,222 crore.
Paragraph 1.8.4
Chapter-2 is based on the audit of the Appropriation Accounts and gives grant-wise description of appropriations and the manner in which the allocated resources were managed by the service delivery departments.
Savings of ₹ 11,501 crore (80 per cent) occurred in 24 cases relating to 21 grants. In these cases, savings exceeded ₹ 100 crore and was 20 per cent or more of the provision.
Paragraph 2.4.1
In 11 cases (10 departments), there were persistent savings of 10 per cent or more of the total provisions during the last five years.
Paragraph 2.4.3
Excess expenditure of ₹ 2,749.87 crore over provisions for the years 2001-02 to 2016-17 was yet to be regularised by the State Legislature as required under Article 205 of the Constitution of India.
Paragraph 2.4.5
In 13 grants, expenditure of ₹ 5,956.80 crore (59.08 per cent) was incurred in the last quarter of 2017-18 against the total expenditure of ₹ 10,083.23 crore. Of this, ₹ 3,913.00 crore (38.81 per cent of the total expenditure) was incurred in the month of March 2018.
Paragraph 2.5
Chapter-3 is an inventory of the Jharkhand Government’s compliance with various reporting requirements and financial rules.
Utilisation certificates (UCs) of ₹ 38,911.59 crore against the Grants-in-aid bills drawn upto 2016-17 by different departments were outstanding as on 31 March 2018 which was indicative of failure of the departmental officers to comply with the rules and procedures to ensure timely utilization of the grants for the intended purpose.
Paragraph 3.1
At the end of October 2018, Detailed Contingent bills for an amount of ₹ 5,216 crore was outstanding against 18,406 Abstract Contingent bills drawn during 2001-2018.
Paragraph 3.3
Incorrect accounting of expenditure and revenue resulted in overstatement of revenue surplus by ₹ 831.08 crore and understatement of fiscal deficit by ₹ 831.08 crore.
Paragraph 3.11
Download Audit Report
- Cover Page
- Table of contents
- Preface
- Executive Summary
- Chapter I - Finances of the State Government
- Chapter II - Financial Management and Budgetary Control
- Chapter III - Financial Reporting
- Appendices