CAG Flags ‘Unrealistic’ Assam Budget Assumptions, Rs 30,516 Cr Savings Largely Notional

The Comptroller and Auditor General (CAG) has sharply criticised the Assam government’s budgetary assumptions for the 2023–24 financial year, terming them “unrealistic and overestimated” and highlighting serious gaps between projected and actual receipts.

Against total grants and appropriations of Rs 1,69,966.13 crore, the state incurred an expenditure of Rs 1,39,449.66 crore, resulting in overall savings of Rs 30,516.47 crore. These savings accounted for 17.95 per cent of total grants and appropriations. However, the CAG clarified that the savings were largely notional as the actual revenue receipts were significantly lower than the estimates.

As per the report tabled in the Assam Legislative Assembly, the government had estimated receipts of Rs 1,65,215.70 crore for the financial year. But the actual receipts stood at only Rs 1,38,830.79 crore, exposing a shortfall of over Rs 26,000 crore.

“The savings were notional, as the funds were not actually available for expenditure,” the report stated.

Despite the large volume of savings, the departments surrendered only Rs 107.08 crore—just 0.35 per cent of the total savings. This, the CAG said, prevented effective reallocation of funds to departments requiring additional financial support and pointed to poor financial management practices.

The audit also revealed major flaws in the state’s handling of supplementary grants. Supplementary provisions amounting to Rs 30,210.86 crore were approved during 2023–24. However, only 74.19 per cent of this amount was actually required.

“Seeking supplementary grants without a requirement is indicative of poor budgetary management by the state government,” the report observed, adding that departments lacked both allocative and utilisation efficiency, leading to excess expenditure in some areas and unutilised funds in others.

Administrative lapses were further highlighted in the management of financial records. As of March 31, 2024, a total of 485 annual accounts from 75 autonomous and development councils and other government bodies remained pending submission to the CAG. Additionally, 245 annual accounts from 39 public sector undertakings (PSUs) had not been furnished for audit, significantly weakening financial transparency and accountability.

The non-submission of Utilisation Certificates (UCs) also emerged as a serious concern. The CAG reported that 6,335 UCs, amounting to Rs 18,669.55 crore from the period 2005–06 to 2022–23, were still pending.

In the absence of these certificates, the actual utilisation of funds remains unverifiable, raising questions over how public money has been spent over the years.

The CAG has recommended that the state government formulate more realistic budgets based on credible estimates of revenue mobilisation and departmental capacity to utilise funds efficiently. It also suggested that the Finance Department review departments with persistent savings to ensure better allocation and stricter monitoring of expenditure.

The findings underline the urgent need for improved fiscal planning, tighter financial discipline and accountability mechanisms to ensure that public resources are aligned with actual development requirements in Assam.

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