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Karnataka

Report of 2006 - Financial Audit on Panchayati Raj Institutions, Government of Karnataka

Date on which Report Tabled:

Date of sending the report to Government

Government Type

Local Bodies

Local Body Types

Panchayat Raj Institutions

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Overview

The Report contains two chapters. The first chapter contains observations of Audit on the accounts and finances of the Zilla Panchayats and Taluk Panchayats and the other chapter contains four performance audit reviews and 13 paragraphs based on the audit of financial transactions of the Panchayat Raj Institutions. A synopsis of the findings contained in the performance reviews and paragraphs is presented in this overview.

During 2003-06, the allocation to Panchayat Raj Institutions formed 13 to 16 per cent of the total budget of the State.Many Zilla Panchayats did not comply with the standard procedure for maintenance of accounts and there were discrepancies in adoption of opening balance leading to incorrect exhibition.Despite the stipulation in the Karnataka Panchayat Raj Act and repeated comments in previous Reports of the Comptroller and Auditor General of India, delays persisted in forwarding the annual accounts of the Zilla Panchayats to the Principal Accountant General for audit.The creation and maintenance of database on finances and accounts of Panchayat Raj Institutions, as stipulated under Eleventh Finance Commission was discontinued from the year 2002-03 onwards.Drawing and Disbursing Officers of 15 Zilla Panchayats failed to submit the detailed accounts for Rs.4.71 crore drawn on Abstract Contingent bills.433 cases of misappropriation/defalcation involving Rs.21.40 crore were pending at various stages in 25 Zilla Panchayats.

As an important step towards realisation of the right to work and to enhance the livelihood security on a sustained basis by developing the economic and social infrastructure in rural areas, the Government of India enacted(September 2005) the National Rural Employment Guarantee Act, 2005.Correspondingly, the State Government formulated the Karnataka Rural Employment Guarantee Scheme. The objective of the scheme was to give effect to the legal guarantee of work by providing atleast 100 days of guaranteed employment to every household whose adult members volunteer to do unskilled manual labour. The implementation of the scheme suffered due to laxity of the State Government in preparatory procedures, non-distribution of job cards and non-provision of envisaged employment to the registered households, delay in payment of wages to labourers, etc. Basic documents such as Employment Register were not maintained in many of the Taluk Panchayats test-checked.

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