Audit Reports
Odisha
Report of 2012 - Compliance, Financial and Performance Audit on State Finances of Government of Odisha
Overview
This Report on the Finances of the Government of Odisha is being brought out with a view to assess objectively the financial performance of the State during 2011-12 and to provide the State Government and State Legislature with timely inputs based on audit analysis of financial data. In order to give a perspective to the analysis, an effort has been made to compare the achievements with the targets envisaged by the State Government in the Fiscal Responsibilities and Budget Management (FRBM) Amendment Act 2011 under Mid Term Fiscal Plan (MTFP), and in the Budget Estimates of 2011-12, and norms recommended by the Thirteenth Finance Commission (ThFC). The Report based on the audited accounts of the State Government for the year ending March 2012, this report provides an analytical review of the Annual Accounts of the State Government. The financial performance of the State has been assessed based on the FRBM Act, budget documents, ThFC recommendations and other financial data obtained from various Government departments and organisations. The report is structured in three chapters.
Chapter 1 is based on the audit of Finance Accounts and makes an assessment of Odisha Government's fiscal position as of 31 March 2012. It provides an insight into trends in committed expenditure, borrowing pattern besides a brief account of central funds transferred directly to the State implementing agencies through off-budget route and resources generated through public private partnership mode. Chapter 2 is based on audit of Appropriation Accounts and it gives the grant-by-grant description of appropriations and the manner in which the allocated resources were managed by the service delivery departments. Besides, comments arising out of audit of budgetary process and budget assumptions and outcome of inspection of treasuries have also been made in chapter-2. Chapter 3 is an inventory of Government's compliance with various reporting requirements and financial rules. The report also has an appendage of additional data collected from several sources in support of the findings. Appendix 4.1 at the end gives a glossary of selected terms related to State economy, as used in this report.
Amendment to the State FRBM Act: In accordance with the ThFC recommendations the State Government amended (February 2012) the FRBM Act incorporating therein the continuation of the already achieved zero revenue deficit, setting a target of three per cent of fiscal deficit and review of compliance to provisions of FRBM Act through an independent agency as required by the ThFC. However, disclosures like projection of Revenue Consequences of Capital Expenditure (RCCE) in the MTFP, public-private partnerships (PPPs) and related liabilities and bringing out statements on physical and financial assets and vacant public land and building were not included as recommended by ThFC to be featured under MTFP. Besides, system of reviewing the compliances to the provisions of the FRBM Act was not put in place even after two years of ThFC recommendations came into force.