Assam's SPSE Investment Conundrum: A Fiscal Dilemma

Assam's government has invested over Rs 1,970 crore in State Public Sector Enterprises (SPSEs) with significant arrears, as highlighted in a CAG report. It recommends halting further funds until accounts are updated, urging the establishment of a finance department cell for oversight and potential outsourcing for accounts preparation.

In a revealing CAG report, the Assam government faces scrutiny for investing over Rs 1,970 crore in State Public Sector Enterprises (SPSEs) with prolonged arrears. The report outlines accounts pending from one to 16 years, recommending a suspension of further financial aid until these arrears are addressed.

Specifically, nine SPSEs have received the majority of state funds, with notable mentions like the Assam Hills Small Industries Development Corporation Ltd, whose accounts have been delayed for 16 years. This delay threatens transparency and poses risks of fraud, according to the report.

To mitigate further fiscal strain and potential misuse of public funds, the report suggests creating a dedicated finance department cell for swift arrear clearance, and potential outsourcing for necessary expertise, coupled with punitive measures for SPSE management failing to comply.

(With inputs from agencies.)