The Comptroller and Auditor General (CAG) has flagged over Rs 54,000 crore in unaccounted spending in the Union government’s accounts for 2024–25, pointing to delays in utilisation certificates, misclassification of funds and gaps in financial controls.
In its latest report tabled in Parliament earlier this month, the auditor said 33,973 utilisation certificates (UCs) amounting to Rs 54,282.32 crore remained pending across 15 ministries and departments as of March 31, 2025. These certificates are meant to confirm that funds released as grants-in-aid have been used for their intended purpose.
Of the total pendency, Rs 38,287.52 crore relates to the last three financial years (2021–22 to 2023–24), though some cases date back to 1985–86. The delays violate Rule 238 of the General Financial Rules (GFR), 2017, which mandates submission of UCs within 12 months.
The Ministry of Housing and Urban Affairs accounted for the highest pending amount at Rs 18,272.91 crore, followed by the Department of Higher Education at Rs 14,359.76 crore.
The report also flagged misclassification of expenditure worth Rs 12,754.47 crore. Of this, Rs 8,742.56 crore was incorrectly recorded due to the use of wrong accounting heads. In one case, the Department of Atomic Energy booked Rs 3,089.97 crore of revenue expenditure under capital heads.
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Irregularities were also found in receipts worth Rs 4,011.91 crore, with non-tax revenues wrongly classified as tax revenues by agencies including the CBDT and CBIC, potentially distorting the government’s fiscal position.
The CAG criticised the continued use of the omnibus ‘Minor Head 800’ for booking expenditure and receipts, noting that over 50 per cent of transactions under several heads were recorded under this category, affecting transparency.
It further said Rs 9,222 crore collected through levies and cess was not fully transferred to designated reserve funds such as the Prarambhik Shiksha Kosh and the Pradhan Mantri Swasthya Suraksha Nidhi.
The auditor also flagged 56 instances of adverse balances, including Rs 44,714.77 crore under the Ministry of External Affairs, attributed to an incorrect transfer entry.
Additionally, a cash balance of Rs 3,880.67 crore remained unreconciled with the Reserve Bank of India, while liabilities were understated due to netting in suspense heads.
The CAG has called for stricter adherence to accounting norms and stronger oversight mechanisms, including a more robust digital tracking system under the Public Financial Management System.
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