Not many days ago, the Comptroller and Auditor General (CAG) had presented its annual audit report of the Union Accounts. It had pointe out various lacunae on the Government spending mechanism that left many unanswered questions about the expenditure of thousands of crores of rupees. Today I was browsing through Orkut when I notices a thread on the issue in of the Orkut Communities. I decided to check out the CAG report first hand. Following are glaring finding that I noticed in the CAG report that may be a pointer to major scams lurking just beneath the surface waiting to be exposed.

From the Chapter Two : Comments on Accounts of the Report

Page 2: For the year 2007-08, Union Government made a provision for transfer of central plan assistance of Rs. 51259.85 crore (as per revised estimates) directly to state/district level autonomous bodies and authorities, societies, nongovernmental organisations, etc., for implementation of centrally sponsored shemes. Since the funds are not being spent fully by the implementing agencies in the same financial year, there remain substantial amounts of unspent funds in their accounts. The aggregate amount of the unspent balances in the accounts of the implementing agencies kept outside Government accounts is not readily ascertainable. The Government expenditure as reflected in the Accounts to that extent is, therefore, overstated

Now, who gave the government the permission to transfer over Rs 51K crore to NGOs etc without proper checks and accountability on their expenditure? Probably this would give you an idea about the money  at stake here. The entire Indira Awaas Yojna had an allocation of Rs 3885 crore which is touted as an achievement by successive governments.So what has the Rs 51K odd crore achieved in the last one year? I guess in an election season the voters need to know!

Page 4: A total Universal Service Levy of Rs. 20404.44 crore was collected during 2002-03 to 2007-08 by the DoT but a disbursement of only Rs. 6371.44 crore was made from the USO Fund during this period against claims of reimbursement received from the service providers concerned. Thus, the closing balance of the Fund as on 31 March, 2008 should be Rs. 14033 crore as against nil balance shown under the Head 8235-General & Other Reserve Funds, 118-Universal Service Obligation Fund in the Public Account of India. The closing balance of Universal Service Obligation Fund as on 31 March 2008 was, therefore, understated by Rs. 14033 crore.

Is this a clear case of a scam of Rs 14033 crore? To put this figure in perspective, the entire fodder scam in which Laloo Yadav faced trail was a case of embezzlement of around 1000 crores. The CAG brought up this matter before the Parliament as well but no steps were taken in this regard. So where has Rs 14033 crore gone?

Page 4: Examination of the expenditure of Rs. 3447.75 crore incurred during 2007-08 out of the fund transferred to Social and Infrastructure Development Fund (SIDF) in the Public Account in 2006-07 disclosed that expenditure of Rs. 1586.75 crore (Appendix II-B) was of revenue nature under the ‘Major Head 2416-Agricultural Financial Institutions’ as subsidy towards implementation of artificial recharge of ground water through dug wells and ‘Major Head 2205-Art and Culture’ towards celebration of 150th year of the First War of Independence, centenary year of Satyagraha Movement, grants-in aid to various cultural organisations. Capital expenditure in the Consolidated Fund of India, 2006-07 was, thus, overstated to the extent of at least Rs. 1586.75 crore.

Probably this very well explains why India is again slipping down the Corruption Index.

Page 14 : Non-reconciliation of ‘Deposits with the RBI’

The figures exhibited in the Finance Accounts represent those figures of expenditure and receipt, which have been in the books of various PAOs, which are subsequently consolidated. Each of such transactions also represents the receipts and payments booked by the Reserve Bank of India (RBI) in their books. At the end of the year the net effect of transactions in the government accounts is represented by ‘Deposits with the RBI’. This figure, which is both in the books of Government as well as in the books of RBI, should normally tally. The difference, if any, between these two figures should be reconciled and explained satisfactorily to ensure the accuracy of accounts.

This difference stood at Rs 24.83 crore in 2004 when the NDA lost the elections. In 2004-05, this difference stood to Rs 64019 crore while by the end of FY 2007-08 this difference had balooned to Rs 168670.50 crore. Though this difference might not be a pointer to any scam, however a government being led by an eminent economist is expected to manage its books better.

It would have been better for our country if our media had covered these issues also that concern the very governance of our nation 24*7  till a satisfactory answer had been provided by the government.