Audit Reports
West Bengal
Report of 2009 - Financial Audit on State Finance of Government of West Bengal
Overview
With an aim to restructuring of public finances, restoring budgetary balances and achieving macro economic stability, Twelfth Finance Commission (TFC) recommended that each State must enact a fiscal responsibility legislafion for eliminating the revenue deficit by 2008-09 and reducing fiscal deficit based on a path for reducfion of borrowings and guarantees. In West Bengal, however, Fiscal Responsibility and Budget Management (FRBM) Act has not yet been enacted. In the absence of FRBM Act, there were no statutory bindings on the Government to achieve the fiscal targets. Revenue Deficit, which was to be eliminated by 2008 09, stood at Rs 14709 crore. Fiscal deficit was also higher than the normafive target fixed by the TFC. Besides, enactment of the said legislafion was made a necessary pre-condifion for accrual of debt relief on outstanding Gol loans. Owing to non-enactment of the legislafion the State could not avail of total financial benefit of Rs 494.24 crore during 2008-09 towards reducfion in annual instalment of Gol loans and waiver of interest.
C&AG's Reports have been analysing Government Finances for over three years since TFC gave its recommendafion. Since these comments formed part of the civil audit report, it was felt that the audit findings on State finances remained camouflaged in the large body of audit findings on compliance and performance audits. The inevitable fallout of this well intenfioned but all inclusive reporfing was that the financial management porfion of these findings did not receive proper attenfion. In recognifion of the need to bring State finances to centre stage once again, a stand alone report on State Government finances is considered appropriate. Accordingly, from the report year 2009 onwards, C&AG has decided to bring out a separate volume fitled "Report on State Finances."