Top auditor points to ‘sub-optimal’ utilisation of funds by Gujarat govt

“The state government could utilise its budget provisions to the extent of 89.98 per cent during the past five years. Large amount of savings in allocated funds indicate both inaccurate assessments of requirements, as well as inadequate capacity to utilise funds for intended purposes,” the CAG observed.

Pointing to the Rs 25,838 crore surrendered at end of March 2020, the auditor stated, “Budget provisions sought and obtained by some departments far in excess of actual requirement, and their inability to utilise the same, deprives allocation of resources to other priority sectors and also leads to poor legislative control over public finances.”

The CAG that said the entire budget provisions for the three renewable energy projects were surrendered due to inadequate planning. The budget of Rs 12.03 crore provided for solar project at Modhera Sun temple and the town was surrendered twice during 2018-’19 and 2019-’20.

“Lack of response from Government of India”, after the state government sent a revised proposal was citied as reason for non-utilisation of funds in 2018-’19. A year later, pending land acquisition and high tender prices quoted by the state-run Gujarat Power Corporation Limited (implementing agency) were reasons for non-utilisation of funds.

The other two projects, where Rs 10 crore and Rs 5 crore of allocated budget was surrendered during 2019-’20 includes assistance for rooftop projects for residential consumers and assistance for adoption of electric vehicles.

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