Shillong, Aug 30: The Comptroller and Auditor General (CAG) of India report for Meghalaya in the year 2024-25 has noted that Rs 815.14 crore was spent by the state government without budget provision or reappropriation, i.e. without authority of the law.
No money shall be withdrawn from the Consolidated Fund of the state except under appropriation made by law passed in accordance with the provisions of Article 204 of the Constitution. Paragraph 95 of Volume I of the Budget Manual provides that no expenditure under a particular head (Major, Minor or Sub-Head) against which no provision exists, in the budget as passed by the Assembly can be incurred and the provision under a grant can never be exceeded.
However, the CAG observed that Rs 815.14 crore was incurred in 10 cases under various components of six grants during 2024-25 without having any provision in the original budget estimates, supplementary demands and without issuing any re-appropriation orders to this effect.
The vast majority of this amount was incurred in the administration of public debts at Rs 693.50 crore. A further Rs 111.85 crore was in the administration of roads and bridges and Rs 8.98 crore in the administration of agriculture and allied services. This amounts to Rs 814.33 crore, with smaller amounts making up the rest.
In its reply to the auditors, the state government stated that expenditure on salaries is committed in nature and therefore unavoidable. The state further assured that more realistic budget provisions would be formulated in future budgets to avoid recurrence of excess expenditure, particularly in respect of committed liabilities.
The CAG report also noted that there was excess disbursement of Rs 9,725.87 crore over the authorisation made by the Assembly under two grants and one appropriation during 2024-25.
Although expenditure on pensions and other services is largely committed in nature, the occurrence of excess expenditure in three out of the last five years (2021-22, 2022-23 and 2024-25) “indicates persistent weaknesses in budget estimation and expenditure control,” the CAG said. “This trend reflects inadequate forecasting of committed liabilities and underscores the need for timely regularisation of excesses and stronger monitoring mechanisms.”
Again, the state told the auditors that expenditure on salaries and pension are committed in nature and therefore unavoidable. The state further assured that more realistic budget provisions would be formulated in future budgets to avoid recurrence of excess expenditure, particularly in respect of committed liabilities.
There are other cases where provisions were made in the budget but no expenditure took place.
Auditors found that the entire budget provision (original plus supplementary) of Rs 400.43 crore in 22 cases was not utilised under the Grant No. 38 during the year 2024-25.
The Planning Department explained that the entire budget provision remained unutilised due to several reasons, including non-allotment of funds though sanction was accorded, not receiving proposals for expenditure from the implementing units and shifting of heads of accounts from Minor Head 800 to other minor heads to which the budget provisions were re-appropriated. “This suggests gaps while formulating the budget estimates, implementing the budget allocations and weak monitoring,” the CAG stated.
