Assam’s budget built on inflated estimate: CAG in scathing report

Guwahati: The Comptroller and Auditor General (CAG) has sharply criticised the Assam government’s financial planning for 2023–24, stating that the state built its budget on “unrealistic and inflated” assumptions. The audit also found that the government approved several supplementary grants even though the original allocations remained unspent.

According to the report, Assam spent Rs 1,39,449.66 crore out of total grants and appropriations amounting to Rs 1,69,966.13 crore. This created an apparent saving of Rs 30,516.47 crore, or 17.95 percent of the total allocation. However, the CAG pointed out that these savings existed only on paper because the state failed to generate the revenue it had projected. Actual receipts stood at Rs 1,38,830.79 crore, far below the estimated Rs 1,65,215.70 crore. The audit stressed that departments could not use these “savings” since the money never actually came into the government’s coffers.

Despite the substantial notional surplus, the government surrendered only 0.35 percent of the total savings—Rs 107.08 crore—thereby restricting the reallocation of unutilised funds to departments that may have needed them. The CAG described this minimal surrender as evidence of poor financial management and ineffective internal budgeting practices across departments.

The audit urged the Assam government to adopt a budget based on realistic revenue projections, actual departmental requirements, and the capacity of departments to use allocated funds efficiently. It further recommended that the Finance Department closely review departments that consistently record savings and adjust their future allocations accordingly.

During the fiscal year, the government approved supplementary grants worth Rs 30,210.86 crore. However, the CAG’s analysis showed that only 74.19 percent of this amount was actually necessary. The report stated that seeking supplementary funds without genuine need reflects weak budget discipline and points to inefficiencies in both allocation and utilisation. This mismatch led some departments to overspend while others left large sums unused.

In addition to budget management issues, the CAG flagged serious lapses in financial reporting. As of March 31, 2024, 485 annual accounts from 75 autonomous and development councils and other government bodies, along with 245 annual accounts from 39 public sector undertakings, had not been submitted for audit. The report said these delays undermine accountability and complicate the overall monitoring of public expenditure.

Another recurring problem involved the failure to furnish Utilisation Certificates (UCs). The state had not submitted 6,335 UCs worth Rs 18,669.55 crore for periods ranging from 2005–06 to 2022–23. Without these documents, auditors cannot verify whether the funds released during these years were used for their intended purposes, raising fresh concerns about transparency and oversight.

The CAG concluded that Assam must adopt more accurate budgeting practices, strengthen its monitoring of departmental spending, and ensure timely submission of financial records to improve fiscal discipline and enhance governance.