The Comptroller and Auditor General (CAG) has severely criticised the Bihar government for failing to submit utilisation certificates (UCs) for funds amounting to a staggering ₹70,877.61 crore, casting doubts on whether the money disbursed was actually used for its intended purposes.
The findings were presented in the CAG’s Report on State Finances for the year 2023–24, which was tabled in the Bihar Legislative Assembly on Thursday. According to the report, 49,649 utilisation certificates—required to verify expenditure against grants released—were still pending submission to the Accountant General (Accounts & Entitlements), Bihar, as of March 31, 2024.
"There is no assurance that the funds released have been used for the purposes for which they were sanctioned in the absence of UCs," the CAG said. The report also cautioned that there is a significant risk of embezzlement, misappropriation, and financial diversion due to such a large backlog. The fact that a sizable amount of the unaccounted funds—₹14,452.38 crore—go back to 2016–17 suggests a persistent breakdown in fiscal responsibility.
The report also identified the top five departments responsible for the bulk of the unsubmitted UCs:
- Panchayati Raj Department: ₹28,154.10 crore
- Education Department: ₹12,623.67 crore
- Urban Development: ₹11,065.50 crore
- Rural Development: ₹7,800.48 crore
- Agriculture Department: ₹2,107.63 crore
The CAG also brought attention to the failure to submit Detailed Contingent (DC) bills in addition to UCs. Regulations state that expenses incurred through Abstract Contingent (AC) bills must be reported on DC bills. But as of March 31, 22,130 DC bills totalling ₹9,205.76 crore were still unpaid.
Also Read: CM Nitish Kumar has lost Amit Shah’s trust, says Tejashwi Yadav
The report observed, “Non-submission of DC bills within the prescribed period breaches financial discipline and increases the risk of misappropriation of public money.” The audit also examined the overall budget performance of the state for the financial year 2023–24, which had a total allocation of ₹3.26 lakh crore. Out of this, Bihar spent only ₹2.60 lakh crore, or 79.92 per cent of the budgeted amount.
The government only turned over ₹23,875.55 crore, or 36.44 per cent of its total savings of ₹65,512.05 crore, despite the unused funds, which raises concerns about the effectiveness and transparency of fiscal management. The report also noted a 12.34 per cent rise in Bihar’s liabilities compared to the previous fiscal year. Internal debt alone accounted for 59.26 per cent of the state’s total outstanding liabilities. Additionally, net liabilities under internal debt increased by 13.51 per cent year over year to ₹28,107.06 crore.
Stronger fiscal oversight and systemic reform are desperately needed, as these findings reveal major issues with financial management, accountability, and governance in important Bihar government departments.
Also Read: BJP mocks INDIA bloc for spelling gaffe on protest banner
Follow us
