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Imphal, July 9 : The Audit Reports of the Comptroller and Auditor General of India (CAG) have been prepared for submission to the Governor under Article 151 of the Constitution of India. Two Audit Reports in respect of the Government of Manipur have been prepared for the year ended 31 March 2011. These two Reports contain altogether eight chapters as follows:
Report of the Comptroller and Auditor General of India on State Finances (Report No. 1) – This Report is structured in three chapters, i.e. comments on the State Finance Accounts, Appropriation Accounts and Financial Reporting based on the information furnished by the various Departments/ Institutions.
Report of the Comptroller and Auditor General of India (Report No. 2) -This Report has five chapters containing results of performance reviews and transaction audit.The portion relating to expenditure and revenue from the Consolidated Fund of the State stands referred to the Public Accounts Committee and the portion relating to Public Sector Undertaking stands referred to the Committee on Public Undertakings. These Committees examine these Reports and issue recommendations for remedial action by the Government.
The Reports have been placed on the table of the State Legislature on 6th of July 2012 and are being uploaded in the Comptroller and Auditor General of India website: www.cag.gov.in. Copy of Audit Reports can also be obtained from the office of the Accountant General (Audit), Manipur, Imphal.
Report of the Comptroller & Auditor General of India on State Finances (Report no.l) Finances of the State Government Revenue receipts During 2006-11, around 89 to 91 per cent of the revenue receipts of the State came from the Government of India (Gol). There has been a significant increase ofRs 1557 crore in the revenue receipts in 2010-11 as compared to previous year; mainly due to increase in the State’s share of Union taxes and duties and also due to greater devolution of Grants-in-aid from the Gol. The significant
increase in Grants-in-aid (Rs 1072 crore) experienced in the current year had a favourable impact on the revenue receipts of the state and was the main factor for the increase in the revenue receipts. The share of Union Taxes / Duties also increased by Rs 393 crore in 2010-11 from previous year; augmenting the increase of revenue receipts during the current year. Increase of own tax and non-tax collection (Rs 91 crore) also contributed in the overall of revenue receipts of the State.
Expenditure status
During 2006-11, expenditure on capital accounts had increased significantly by 121 per cent from Rs 867 crore to Rs 1918 crore; exhibiting a much more steady growth than revenue expenditure which grew by 69 per cent during the same period. Plan expenditure as percentage of total expenditure increased from 40 per cent in 2006-07 to 50 per cent in 2010-
11. This increase was at the expense of non-plan expenditure which exhibited a corresponding decline in trend during 2006-11.
A similar trend was also noticed in terms of expenditure by activities, and was orienting more towards developmental activities of Social Services and Economic Services. However, Non-Plan Revenue Expenditure (NPRE) continued to exceed the limits set in Medium Term Fiscal Policy Statement (MTFPS)/budget/ Thirteenth Finance Commission (ThFC). Salaries expenditure alone accounted 31 per cent of revenue receipts of the State during the year 2010-11 and the non-plan salary expenditure was more than the projection made by the ThFC.
Fiscal position, fiscal liabilities and sustainability of debt During 2010-11, due to increase in the devolution of Grants-in-aid from the Central Government and share of taxes and duties, the revenue surplus increased by Rs 493 crore. As a result of the significant
increase in revenue surplus, the State Government was able to restrain both fiscal deficit and primary deficit, despite increase in total expenditure. At 6.18 per cent of Gross State Domestic Product (GSDP), the fiscal deficit is still way off the mark of the ThFC target to limit the ratio at 3.5 per cent of GSDP by 2012-13 and at 3 per cent thereafter.
Fiscal liabilities have been increasing during the last five years, and have increased at a faster rate during the last two years (2009-11) as compared to the previous years. The fiscal liabilities during the current year exceeded by Rs 1472 crore than the assessed figure ofRs 4652 crore in the MTFPS. The incremental total expenditure was also lower than the incremental non-debt receipt, and thus did not aggravate the fiscal deficit and primary deficit position of the State in 2010-11 as it did in the previous year.
Financial Management and Budgetary Control During 2010-11, an expenditure of Rs 6,124.90 crore was incurred against a total budget provision of Rs 6,804.04 crore, resulting in an overall saving ofRs 679.14 crore. The overall saving was the net result of
saving ofRs 741.56 crore offset by excess ofRs 62.42 crore. The excess of expenditure requires regularization under Article 205 of the Constitution of India.
An expenditure ofRs 113.95 crore was incurred in 22 cases without any provision in the original estimates/supplementary demand/re-appropriation. Supplementary provision aggregating Rs 75.58 crore in 14 cases was unnecessary as the expenditure did not come up to the level of original provision while in five cases, supplementary provision ofRs 88.82 crore proved insufficient by more than Rs 10 lakh in each case. Substantial surrenders (amount exceeding Rs 50 lakh in each case) were made in respect of 18 sub-heads, out of which in one scheme/programme (Deen Dayal Hatkargha Protsahan Yojana), the whole provision amounting to Rs 3.96 crore was surrendered while in six cases an amount of Rs 222.34 crore was surrendered despite having no provision of funds in the respective heads of accounts. Out of Rs 2,019.49 crore paid through Abstract Contingent (AC) bills during 2003-11, Detailed Countersigned
Contingent (DCC) bills for Rs 653.29 crore are outstanding as on October 2011. ( to con)
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