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Jharkhand

Report No. 3 of 2020 - State Finances, Government of Jharkhand for the year ended 31 March 2019

Date on which Report Tabled:
Mon 21 Sep, 2020
Date of sending the report to Government
Mon 17 Aug, 2020
Government Type
State
Sector Finance

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 2019, prepared under Article 151 of the Constitution of India was submitted to the Governor of Jharkhand on 17.08.2020. 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 Jharkhand Government’s fiscal position as on 31 March 2019.

The State has not achieved revenue surplus and Fiscal Deficit to Gross State Domestic Product (GSDP) ratio as targeted in the Medium Term Fiscal Policy (MTFP) statement under Fiscal Responsibility and Budget Management (FRBM) Act. Moreover, normative projection of Fourteenth Finance Commission (FFC) in respect of outstanding debt to GSDP ratio for the year 2018-19 was also not achieved.

The Fiscal Deficit (₹ 6,629 crore) was 2.16 per cent of GSDP against recommended ceiling of 3.25 per cent by the FFC and 2.61 per cent targeted under MTFP.

Page-4

Primary Deficit of the State improved significantly from ₹ 7,271 crore in 2017-18 to ₹ 1,777 crore during 2018-19.

Page-5

Revenue receipts (₹ 56,152 crore) increased by ₹ 3,396 crore (6.44 per cent) over the previous year (₹ 52,756 crore) which was lower than the budget estimates (₹ 69,578 crore).

During 2018-19, Revenue expenditure (₹ 50,631 crore) decreased by ₹ 321 crore (0.6 per cent) over 2017-18 (₹ 50,952 crore). The budget estimates of Revenue expenditure for the current year was ₹ 61,523 crore.

Capital expenditure (₹ 10,712 crore) decreased by ₹ 1,241 crore (10.38 per cent) over 2017-18 (₹ 11,953 crore). The budget estimates of Capital expenditure for the current year was ₹ 13,068 crore.

Page-7, 8 & 16

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.

Page-26

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 department.

Out of total saving of ₹ 20,224 crore, savings of ₹ 15,941 crore (79 per cent) occurred in 29 cases relating to 27 grants. In these cases, savings exceeded ₹ 100 crore and was 20 per cent or more of the grant.

In 11 cases (10 departments), there were persistent savings of 10 per cent or more of the total grants, during the last five years.

Page-36 & 38

Excess expenditure of ₹ 3,015.37 crore over provisions for the years 2001-02 to 2017-18 was yet to be regularised by the State Legislature as required under Article 205 of the Constitution of India.

Page-41

In 21 grants, expenditure of ₹ 6,342.48 crore (62.48 per cent) was incurred in the last quarter of the year against the total expenditure of ₹ 10,151.23 crore. Out of this, an expenditure of ₹ 3,691.90 crore (36.37 per cent of the total expenditure) was incurred in the month of March 2019.

Page-42

Chapter-3 is an inventory of the Jharkhand Government’s compliance to various reporting requirements and financial rules.

Utilisation certificates (UCs) of ₹  53,379 crore against Grants-in-aid bills drawn upto 2017-18 by different departments were outstanding as on 31 March 2019 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.

Page-55

At the end of March 2019, Detailed Contingent bills for an amount of ₹ 5,479 crore were outstanding against ₹ 20,679 crore drawn on AC bills during 2001-2019.

Page-58

Incorrect accounting of expenditure and revenue resulted in overstatement of revenue surplus and understatement of fiscal deficit by ₹ 953.92. The outstanding liabilities of the State was also understated by ₹ 953.92 crore.

Page-64

 

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