The Comptroller and Auditor General (CAG) has strongly criticized the Bihar government for its failure to provide utilization certificates (UCs) for a staggering ₹70,877.61 crore. This deficiency raises serious concerns about the appropriate use of public funds and increases the risk of embezzlement, misappropriation, and diversion of funds. The CAG's report on State Finances for the year 2023-24, which was presented to the Bihar Legislative Assembly on Thursday, highlights these critical lapses in financial accountability.
As of March 31, 2024, a total of 49,649 utilization certificates were outstanding. The absence of these UCs makes it impossible to confirm whether the funds released were used for their intended purpose. A significant portion of the pending amount, ₹14,452.38 crore, dates back to before 2016-17, indicating a persistent issue with fiscal responsibility.
Several departments are responsible for the bulk of the unsubmitted UCs. The top five departments with the highest pending UCs are Panchayati Raj (₹28,154.10 crore), Education (₹12,623.67 crore), Urban Development (₹11,065.50 crore), Rural Development (₹7,800.48 crore), and Agriculture (₹2,107.63 crore).
In addition to the missing UCs, the CAG report also highlights delays in submitting Detailed Contingent (DC) Bills. Expenses incurred through Abstract Contingent (AC) bills are required to be reported on DC bills. However, as of March 31, 2024, DC Bills worth ₹9,205.76 crore were pending against 22,130 AC Bills. The CAG has cautioned that the non-submission of DC bills within the prescribed period breaches financial discipline and increases the risk of misappropriation of public money. Untimely submission of DC bills adds financial unrest, posing a further risk to the state’s economic stability.
The audit also examined Bihar's overall budget performance for the financial year 2023-24, which had a total allocation of ₹3.26 lakh crore. The state spent only ₹2.60 lakh crore, which is 79.92% of the budgeted amount. Moreover, the state surrendered ₹23,875.55 crore, which is only 36.44% of its total savings of ₹65,512.05 crore.
The CAG report further reveals that Bihar's liabilities increased by 12.34% compared to the previous fiscal year. Internal debt alone accounted for 59.26% of the state's total outstanding liabilities. The net liabilities under internal debt increased by 13.51% year over year, reaching ₹28,107.06 crore. The state also failed to meet fiscal targets set by the XVth Finance Commission.
These findings highlight significant issues with financial management, accountability, and governance within key departments of the Bihar government. The CAG's report underscores the urgent need for stronger fiscal oversight and systemic reforms to ensure that public funds are used efficiently and for their intended purposes. Without these measures, the risk of embezzlement and financial mismanagement will persist, potentially undermining the state's economic stability and development.
