CAG raps Goa for high interest & low returns
PTI, PANAJI | 31 July 2012 20:10 IST
Criticising the fiscal management practices of the Goa government, the Comptroller and Auditor General of India (CAG) report for 2010-11 has said that its investment in state-run corporations has brought meagre returns even as it paid high interest on borrowing.
The CAG report was tabled in the Assembly today.
It stated that the average return on states investment in statutorycorporations, government companies, joint stock companies and co-operatives was only 0.17 per cent in the last five years while the government paid an interest of 7.46-7.97 per cent on its borrowings during this period (2006-11).
As on March 31, 2011, the state government had invested Rs 382.16 crore in state-run companies and cooperative banks, the CAG report stated.
The state made a capital contribution of Rs 9.50 crore in the state-run Kadamba Transport Corporation during the year 2010-11 itself while Goa State Scheduled Tribes Finance and Development Corporation received Rs 4.90 crore and co-operative banks and societies Rs 5 crore.
"The government should take steps to ensure better value for money in investments. Otherwise, high cost borrowed funds will continue to be invested in projects with low financial returns," the CAG stated.
Meanwhile, referring to another example of financial indiscipline, the CAG report said that Goa government has been transferring funds directly to state agencies for the implementation of various schemes, programmes in social and economic sectors.
As these funds are not routed through the state budget or state treasury system, the annual accounts do not capture the flow of these funds and states receipts and expenditure as well as other fiscal variables derived from them are understated.
The auditors have also expressed the possibility of misuse of funds as they are directly transferred to these agencies and not through the state budget.
