CAG Highlights Major Financial Lapses in Gujarat Government's Practices

The Comptroller and Auditor General (CAG) of India identified several financial missteps by the Gujarat government. Key recommendations include setting up State Finance Commissions, improving investment returns for various entities, and completing projects timely. The CAG also voiced concerns over budgetary misclassifications, underutilized funds, and inactive public sector units.

The Comptroller and Auditor General (CAG) has flagged significant financial irregularities in the Gujarat government's practices, calling for the formation of 'State Finance Commissions' and a control mechanism for budget oversight.

Tabled in the Gujarat Assembly on the final day of the monsoon session, the 'State Finances Audit Report' for the year ending March 31, 2023, highlights persistent excess expenditures and misallocations within the state budget. The CAG urges a time-bound implementation of the Finance Commissions' recommendations and a reassessment of investment returns for state entities.

Furthermore, the report underscores the need for a robust database to accurately project retirement benefits for Panchayat employees and swift action on completing projects. Attention was also drawn to the underutilization of the Nirbhaya Fund aimed at enhancing women's safety and security. The CAG stressed the importance of adhering to budgetary provisions and timelines to avoid repeated financial inefficiencies.