CAG Flags ₹34,000 Cr Unspent Funds In J & K

(MENAFN- Kashmir Observer) Srinagar- The Comptroller and Auditor General of India has flagged serious financial management lapses in Jammu and Kashmir, revealing that over ₹34,000 crore in savings were not surrendered by government departments during 2023–24, in violation of prescribed budgetary norms.

The audit report noted that against a total allocation of ₹1,04,178.32 crore under 36 grants, actual expenditure stood at ₹69,260.36 crore, leaving savings of ₹34,917.96 crore that were not returned to the Finance Department as required.

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Under the Jammu and Kashmir Budget Manual, departments are mandated to surrender anticipated savings to ensure efficient reallocation of funds. The failure to do so, the CAG observed, reflects weak financial control and poor budgetary discipline.

The report further highlighted that overall expenditure during 2023–24 stood at ₹1,26,054.97 crore against a total provision of ₹1,57,212.90 crore, resulting in additional savings of ₹31,157.93 crore, again largely unsurrendered. Overall spending remained about 20 per cent lower than total grants and appropriations.

A department-wise analysis revealed significant underutilisation of funds across key sectors. More than half of the allocated funds remained unspent in at least ten departments, including Public Health Engineering (70 per cent), Tribal Affairs (80 per cent), Industries and Commerce (68 per cent), Planning (67 per cent), Irrigation and Flood Control (64 per cent), and Agriculture (54 per cent), among others.

In a major concern, the audit found that ₹10,597.90 crore under 31 grants involving 160 schemes remained completely unutilised, effectively denying intended benefits to the public.

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The CAG also pointed to persistent patterns of under-spending. In 45 cases across 28 grants, savings exceeding ₹100 crore were recorded without surrender, while 37 cases showed consistently high savings over three consecutive years from 2021–22 to 2023–24, indicating structural issues in budgeting.

Highlighting procedural violations, the report noted that ₹5,214.45 crore was incurred under 35 schemes without any budgetary provision. Additionally, excess expenditure of ₹19,610.17 crore was incurred between October 2019 and March 2024 without proper regularisation, including ₹3,760.84 crore during 2023–24 alone.

The audit also flagged poor planning in supplementary budgeting. Supplementary provisions worth ₹588.69 crore proved unnecessary, as spending did not reach original allocation levels, while in other cases, supplementary funds of ₹5,348.98 crore fell short, resulting in excess expenditure of ₹3,471.06 crore.

Another concern raised was the“rush of expenditure” at the end of the financial year, with more than 50 per cent of total spending recorded in March 2024 under multiple heads, a practice that undermines financial prudence.

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The Finance Department, in its response, attributed the savings to lower-than-expected receipts under centrally sponsored schemes and reduced capital expenditure, and said corrective measures would be taken.

Recommending reforms, the CAG urged the government to adopt realistic budgeting, strengthen expenditure monitoring, ensure timely surrender of savings, and fix accountability of controlling officers.

The government should make realistic budgetary provisions and ensure efficient control mechanisms to curtail savings and excess expenditure,” the CAG said.

CAG emphasised that“excess expenditure over the approved Grants may be regularised at the earliest” to maintain financial discipline.

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