Uttarakhand — what the CAG audit found

Financial audit · State finances

This is the CAG’s annual report on the finances of the whole State. It analyses the State Government’s own accounts for the year — what came in, what was spent, the deficit, the debt and how closely spending followed the budget. It is not a compliance audit (were the rules followed in a particular department?) or a performance audit (did a scheme meet its goals?); the CAG publishes those as separate reports.

“audit observations on matters arising from the examination of the Finance Accounts and the Appropriation Accounts respectively, of the State Government for the year ended 31 March 2024” — Uttarakhand report, p. 9

1. Subsidies

   Report p. 14

   Subsidies rose from 35 crore in 2019-20 to 428 crore in 2023-24, or 0.91 per cent of revenue expenditure; food subsidy was 104 crore of the 2023-24 total, and implicit subsidies added 76.54 crore.

   “increased from ₹ 35 crore in 2019-2020 to ₹ 428 crore in 2023-24” — CAG report

2. Revenue surplus

   Report p. 14

   The State moved from a revenue deficit of 2,136 crore in 2019-20 to a revenue surplus of 3,341 crore in 2023-24, lower than the 5,310 crore surplus of 2022-23.

   “changed to revenue surplus of ₹ 3,341 crore (0.97 per cent of GSDP) in the current year” — CAG report

3. Fiscal deficit

   Report p. 14

   Fiscal deficit rose from 2,949 crore in 2022-23 to 7,749 crore in 2023-24, staying within the FRBM limit of 3.00 per cent of GSDP.

   “The fiscal deficit of the State increased to ₹ 7,749 crore (2.24 per cent of GSDP) in 2023-24 from ₹ 2,949 crore (0.97 per cent of GSDP) in 2022-23.” — CAG report

   State Government’s reply, as recorded: Government accepted the facts and figures at the exit conference.

4. Deficits after audit

   Report p. 38

   After audit adjustments the revenue surplus would fall from 3,341 crore to 2,273 crore and the fiscal deficit rise to 7,939 crore, mainly from items such as NPS contribution, Contingency Fund recoupment and Green Energy Cess.

   “Revenue Surplus was overstated by ₹ 1,068 crore (31.97 per cent)” — CAG report

   State Government’s reply, as recorded: Government agreed and stated it would take appropriate action; on Central Road Fund and Green Energy Cess it said action would be taken in future.

5. Debt sustainability

   Report p. 15

   The liabilities to GSDP ratio fell from 31.66 per cent in 2020-21 to 23.18 per cent in 2023-24 (excluding the GST back-to-back loan), which the report reads as a stabilising debt burden.

   “The steady decline in the state’s debt burden, measured by the overall liabilities-GSDP ratio, since 2021-22 indicates that it has started stabilizing.” — CAG report

6. Debt classification

   Report p. 37

   Total borrowing and liabilities were stated as 5,649 crore higher than needed because the back-to-back GST compensation loan from the Union Government is included, which is not to be treated as State debt.

   “total borrowing and liabilities during the year 2023-24 was overstated by ₹ 5,649 crore (1.63 per cent of GSDP)” — CAG report

7. Off-budget borrowings

   Report p. 37

   The State Government informed audit that there were no off-budget borrowings by PSUs or special purpose vehicles that the State budget would have to service.

   “As intimated by the State Government there were no cases of off-budget fiscal operations such as borrowings by State PSUs” — CAG report

   State Government’s reply, as recorded: State Government informed that no such off-budget operations existed.

8. Guarantees

   Report p. 15

   Outstanding guarantees were 119 crore at 31 March 2024, 0.03 per cent of GSDP, within the FRBM ceiling; new guarantees in the year were 167 crore and none was invoked.

   “total outstanding guarantees as on 31 March 2024 was ₹ 119 crore which is 0.03 per cent of GSDP for the year and hence was within the FRBM ceiling” — CAG report

9. Pending utilisation certificates

   Report p. 148

   432 utilisation certificates worth 3,410.64 crore were pending at March 2024 under the Accountant General's watch; the Executive Summary also reports 210 overdue UCs of 1,395.68 crore.

   “A total number of 432 UCs amounting to ₹ 3,410.64 crore was pending as of March 2024.” — CAG report

10. Excess over grants

    Report p. 17

    Excess expenditure of 7,302.10 crore under one grant in 2023-24 needs legislative regularisation, and 48,654.69 crore of excess from 2005-06 to 2022-23 remains unregularised.

    “excess disbursements of ₹ 48,654.69 crore pertaining to 2005-06 to 2022-23 were yet to be regularized” — CAG report

    State Government’s reply, as recorded: Finance Department stated at the exit conference that it will take appropriate action.

11. Unnecessary supplementary grants

    Report p. 115

    Supplementary budget of 6,086.74 crore in 30 cases under 20 grants proved unnecessary because savings against the original budget already existed; 2,103.21 crore was surrendered under 18 grants.

    “Government sought supplementary budget of ₹ 6,086.74 crore in 30 cases under 20 grants which proved unnecessary” — CAG report

12. Committed expenditure

    Report p. 14

    Committed expenditure (salaries, pensions, interest) was 27,130 crore in 2023-24; with inflexible expenditure it totalled 30,880 crore, 65 per cent of revenue expenditure.

    “Taken together, the committed and inflexible expenditure in 2023-24 was ₹ 30,880 crore, 65 per cent of the revenue expenditure.” — CAG report

13. Capital spending

    Report p. 14

    The State spent 10,982 crore on capital outlay, 18.81 per cent of total expenditure; total capital expenditure of 11,106 crore was 82.68 per cent of the budget estimate of 13,432 crore.

    “The State Government spent ₹ 10,982 crore on capital account.” — CAG report

14. Unreconciled accounts

    Report p. 17

    The State did not reconcile 13.00 per cent of total expenditure and 4.94 per cent of receipts with the Accountant General's records.

    “The State Government did not reconcile 13.00 per cent of the total expenditure and 4.94 per cent of the receipts.” — CAG report