The Comptroller and Auditor General of India (CAG) has raised critical concerns regarding financial mismanagement in Andhra Pradesh. A recent CAG report has highlighted excess pension payments, unauthorized backend activities in financial systems, and rising fiscal deficits.
Excess Pension Payments
The report revealed that excessive benefits amounting to ₹218.15 crore were disbursed to 2,545 pensioners across 193 treasury officers and Drawing and Disbursing Officers (DDOs) between April 2018 and September 2021. This occurred due to the absence of a “limit check” in the financial application. The CAG has urged administrative departments to investigate, recover excess payments, and hold erring officials accountable.
Backend Financial Manipulations
The report found that 1,44,493 Personal Deposit (PD) accounts were created via the backend of the Comprehensive Financial Management System (CFMS) without approval from the Finance Department’s Cash and Debt Management Section. Additionally, funds amounting to ₹71,568.44 crore were lapsed in 3,41,410 cases between March 2019 and March 2021 without PD administrators’ involvement. The CAG highlighted a lack of effective system controls and process validations, leading to unauthorized changes in beneficiary credentials and misappropriation of ₹43.09 lakh.
Fiscal and Revenue Deficit
The fiscal health of Andhra Pradesh has been under significant stress. The revenue deficit rose to ₹43,487 crore (3.30% of GSDP) in 2022-23 from ₹13,899 crore (1.59% of GSDP) in 2018-19. Meanwhile, the fiscal deficit increased to ₹52,508 crore (3.98% of GSDP) from ₹35,467 crore (4.06% of GSDP) during the same period.
Alarmingly, the state’s capital expenditure was only ₹7,244 crore in 2022-23, constituting just 3.45% of total expenditure. This indicates that borrowed funds are primarily being used for current consumption and repayment of borrowings rather than developmental activities.
Call for Action
The CAG has called for an urgent overhaul of system designs, implementation of robust process validations, and stricter financial accountability mechanisms. These measures are imperative to curb further fiscal mismanagement and ensure the state’s resources are directed toward developmental priorities.
Conclusion
The findings underscore the need for better governance, financial transparency, and accountability to mitigate rising fiscal pressures and ensure public resources are utilized effectively for Andhra Pradesh’s growth and development.
Leave a comment