CAG Report Uncovers Major Financial Lapses in Bihar Government
The Comptroller and Auditor General of India (CAG) report, presented in the Bihar legislative assembly on Thursday, has shed light on significant shortcomings in the state's revenue collection mechanisms and financial management. Tabled by Finance Minister Bijendra Prasad Yadav, the audit findings paint a concerning picture of inefficiency and potential mismanagement across various departments.
Revenue Arrears and Pending Utilisation Certificates
According to the report, revenue arrears in Bihar stood at a staggering Rs 4,844 crore as of March 31, 2023. Alarmingly, Rs 1,430 crore of this amount has been pending for more than five years, indicating persistent collection failures. Furthermore, the report highlighted that utilisation certificates (UCs) amounting to Rs 92,133 crore were either pending or unavailable until March 31, 2025, raising serious questions about financial accountability and transparency in government spending.
Irregularities in Pradhan Mantri Awas Yojana-Gramin
The CAG audit flagged numerous irregularities in the implementation of the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) scheme. Instances were found where houses were sanctioned to ineligible beneficiaries, including four cases involving minor children, despite central government guidelines specifying that minors could only be sanctioned houses jointly with a guardian or block/panchayat officer after verification. Additionally, the report noted geo-tagging discrepancies, with houses located in Delhi and Jharkhand being incorrectly mapped, further complicating oversight and verification processes.
Allegations of GST Scam and Departmental Failures
RJD MLA Kumar Sarvjeet raised allegations of a goods and services tax (GST) input tax scam in Bihar, claiming that Rs 200 crore was refunded to businesses without proper tax payments. He reiterated the CAG's findings on the Rs 4,844 crore in outstanding revenue, emphasizing the long-pending dues. The transport department also came under scrutiny for issuing vehicle fitness certificates without following standard operating procedures, resulting in substantial financial losses to the state exchequer.
Breakdown of Outstanding Dues Across Sectors
The CAG report provided a detailed breakdown of revenue arrears across various sectors:
- Taxes and duties on electricity: Rs 20 crore
- Goods and services: Rs 32 crore
- State excise: Rs 543 crore
- Mining and metallurgical industries: Rs 1,505 crore
- Sales tax: Rs 2,371 crore (with Rs 1,289 crore pending over five years)
- Goods and passenger taxes: Rs 2,485 crore
- Vehicle taxes: Rs 183 crore
- Land revenue: Rs 302 crore
The mines and geology department failed to provide details on arrears pending for more than five years, while a land revenue auction has been initiated to recover some dues.
Discrepancies in Agricultural Subsidies and Disaster Funds
The audit revealed irregularities in the distribution of agricultural input subsidies and disaster response funds. In 2019, subsidies worth Rs 21 crore were provided to 10 districts not declared flood-affected, while applicants in 14 other districts received Rs 4 crore in areas excluded from disaster-affected lists. Between 2019 and 2020, subsidies totaling Rs 151 crore were distributed over an area 1.34 lakh hectares larger than the identified crop damage area. Non-compliance with State Disaster Response Fund (SDRF) norms led to overpayments of Rs 3 crore, and incorrect database mapping resulted in excess, underpayment, or irregular payments amounting to Rs 56 crore across 15.53 lakh cases. From 2019 to 2022, subsidies worth Rs 159 crore were disbursed in 6.81 lakh cases despite crop damage being less than 33%, further highlighting systemic flaws.
Call for Improved Financial Governance
The CAG report underscores an urgent need for enhanced financial governance and accountability in Bihar. With substantial revenue arrears, pending utilisation certificates, and irregularities in key schemes like PMAY-G and agricultural subsidies, the findings call for immediate corrective measures to safeguard public funds and ensure efficient administration. The state government must address these lapses to restore trust and improve fiscal management.
