The Gauhati High Court has directed the Assam government to respond to a public interest litigation (PIL) seeking strict compliance with the Assam Fiscal Responsibility and Budget Management (AFRBM) Act, 2005, as amended. The petition, filed by advocate Reetam Singh, alleges persistent and admitted violations of the Act, including failure to limit fiscal deficit to 3% of Gross State Domestic Product (GSDP), elimination of revenue deficit, prudent debt management, and use of borrowings only for productive capital assets rather than revenue expenditure.
Court Proceedings
A division bench comprising Chief Justice Ashutosh Kumar and Justice Arun Dev Choudhury heard the petition. Senior advocate KN Choudhury represented the petitioner. The court has scheduled the next hearing for September 16.
Petitioner's Allegations
The petitioner argued that the plea is supported by successive adverse observations from the Comptroller and Auditor General (CAG) of India in its State Finances Audit Reports for 2020-21 to 2022-23 and Report No 2 of 2024. These reports highlight massive non-submission of Utilisation Certificates (Rs 37,991.70 crore outstanding as of March 31, 2023), misclassification of expenditures, cosmetic accounting practices, underutilization of funds, and serious departmental irregularities indicating potential misappropriation, favouritism, and corruption.
Singh further alleged that escalating public debt infringes upon the fundamental rights of citizens under Articles 14, 19, and 21 of the Constitution and violates constitutional mandates under Articles 202, 266, and 293.
Relief Sought
The petitioner seeks directions for strict enforcement of the AFRBM Act, a time-bound forensic audit by the CAG, constitution of an Expert Committee, and other consequential reliefs to restore fiscal discipline, transparency, and accountability in the management of public finances, thereby protecting the economic rights of the people of Assam.
