CAG reports Gujarat 2016 now available online, access them here

April 26, 2016
Gujarat State Government


New Delhi

Presented here are the Comptroller and Auditor General(CAG) reports for Gujarat released this year.

Report of the Year 2015 – State Finances Government of Gujarat

Overview

This Report provides an analytical review of the Annual Accounts of the State Government for the year 2014-15. The Report is structured in three Chapters.

Chapter 1 is based on the Finance Accounts and makes an assessment of the Government’s fiscal position as on 31 March 2015. It provides an insight into trends of different components of the Government’s receipts, expenditure and borrowing pattern, besides giving a brief account of fiscal imbalances.

Chapter 2 is based on the Appropriation Accounts and gives a grant-wise description of appropriations and the manner in which the allocated resources were managed by the service delivery Departments. Observations on the audit of administrative department/ controlling officers relating to Grant No. 9 (Education) and Grant No. 74 (Transport) are included.

Chapter 3 is an inventory of the Government’s compliance with various reporting requirements and financial rules alongwith additional data collated from several other sources in support of the findings. This Chapter also contains observations noticed during audit of submission of Utilisation Certificates by the Social Justice and Empowerment Department and its three controlling officers. The findings related to Audit of the Personal Ledger Account of the Director General and Inspector General of Police Gujarat are also given.

At the end of 2014-15, the fiscal deficit as percentage to GSDP was 2.13, which was within the limit of three per cent. The State’s total outstanding debt as percentage of GSDP was 23.57 per cent which was also within the target of 27.1 per cent fixed by the ThFC. For financing its deficit, the State Government heavily relied on Market borrowing despite availability of resources under Public Accounts of the State and Cash Balance Investments.

During 2014-15, expenditure of Rs.1,17,670.05 crore was incurred against total grants and appropriations of Rs.1,39,284.10 crore resulting in overall savings of Rs.21,614.05 crore. The overall savings of Rs.21,614.05 crore was the result of savings of Rs.21,758.50 crore, offset by excess of Rs.144.45 crore.

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Report No 1 of 2016 – Public Sector Undertakings Government of Gujarat

Overview

Overview on the functioning of State Public Undertakings (SPSUs)

SPSUs consist of State Government Companies and Statutory Corporations. As on 31 March 2015, in Gujarat there were 68 Working SPSUs (64 Companies and four Statutory Corporations) and 13 non-working SPSUs. As on 31 March 2015, the investment (capital and long term loans) in 81 SPSUs was Rs.1,15,932.27 crore. Out of the total investment, 99.31 per cent (Rs.1,15,132.84 crore) was in working SPSUs and remaining 0.69 per cent (Rs.799.43 crore) was in non-working SPSUs. Thirty-five working SPSUs had arrears of 61 accounts as on 30 September 2015. The extent of arrears ranged from one to five years. During the year 2014-15, as per their latest finalised accounts, out of 68 working SPSUs, 49 SPSUs earned profit of Rs.3,725.62 crore and 13 SPSUs incurred loss of Rs.613.17 crore.

Performance Audit:The report contains Performance Audit of ‘Exploration and Development Activities of Gujarat State Petroleum Corporation Limited’ and ‘Working of Gujarat State Warehousing Corporation’.

Major Compliance Audit Observation:The metered agricultural consumers pay energy charges based on actual energy consumption. The unmetered agricultural consumers pay fixed amount irrespective of actual consumption. The excess consumption of electricity by unmetered agricultural consumers as compared to metered agricultural consumers during the period 2009-10 to 2014-15 in the four DISCOMs of Gujarat Urja Vikas Nigam Limited ranged from 5,822.84 MUs to 7,569.48 MUs every year resulting in an avoidable power purchase cost every year of Rs.1,775.97 crore to Rs.2,910.75 crore.

The average consumption per HP by unmetered agricultural consumers was 1,833 units in 2014-15 as against the average consumption of 719 units by metered agricultural consumers. This indicates that unmetered consumption leads to wastage of electricity as well as creates subsidy burden on the State. Probability for excess consumption of water also exists.

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Report No 2 of 2016 – General and Social Sector Government of Gujarat

Overview

The Audit Report (General and Social Sector) for the year ended 31 March 2015 contains findings of three Performance Audits on “Delivery of Healthcare Services in Government Hospitals at District Level”, “Skill Development in Gujarat” and “Functioning of Vadodara Urban Development Authority”, one Theme Based Audit paragraph on “Follow–up Audit on Modernisation of Police Force in Gujarat” and three individual paragraphs on Audit of transactions. The shortfall in the cadres of Specialist Doctors ranged between 29 and 77 per cent, and that of Medical Officers ranged between seven and 69 per cent vis-a-vis IPH Standards. The situation was alarming in DH Surendranagar, DH Godhra and DH Petlad. Availability of beds in DHs was neither as per IPH Standards nor in consonance with the requirements. Audit observed instances of highly congested wards and patients lying on the floor; two patients were accommodated on one bed for transfusion of iron sucrose, and patients accommodated in the passageway due to non-availability of vacant beds.

Instances of supply of Not of Standard Quality (NSQ) medicines by Gujarat Medical Services Corporation Limited (GMSCL) were noticed in test-checked hospitals. Essential specialist services were either not available or partially available in the test-checked DHs except in DH Palanpur, due to vacant posts of Specialist Doctors. Intensive Care Units (ICU) meant to attend critically ill patients, were not available in DH Petlad, DH Surendranagar and DH Vadodara. Instances of higher neo-natal and maternal deaths, vacant posts of Gynaecologists and Paediatricians, and lack of life saving equipment and beds in the maternity ward of test-checked DHs were noticed. Equipment for conducting various tests were not available in the diagnosis and imaging departments in test-checked DHs.

Skill Development in Gujarat Gujarat Skill Development Mission (GSDM) has not formulated uniform skill development policy. Out of 1.63 lakh candidates enrolled, only 37 per cent could pass the Apprenticeship exam and 26 per cent of seats of apprentices remained vacant during 2010-15. Centre for Entrepreneurship Development (CED) could set-up (2012-14) only 39 out of 200 Skill Up-gradation Centres (SUCs) targeted and could train only 0.14 lakh candidates till March 2015 nullifying the objective of preparing technically competent manpower as per industrial needs. Under Sant Shri Ravidas High Skill Training Programme (SSRHSTP) 17,052 candidates (36 per cent) got training against the target of 47,140 during 2010-15. Percentage of female trainees was only 18 per cent against envisaged 30 per cent. Female participation in Vocational Training Centres (VTCs) developed by Tribal Development Department (TDD) on Public Private Partnership mode for skill training to tribal youth was only 17 per cent against a target of 50 per cent set by TDD. Analysis of available data of trainees on web-portal under three major schemes revealed large number of duplications in same scheme and multiple trainings being availed of by same candidates. The achievement figures were thus over reported by 4.58 lakh trainees. Outcome of telephonic survey of 1060 beneficiaries revealed that more than a third of the trained persons surveyed remained unemployed post their skill development training. Also a remunerative salary eluded almost 44 per cent of employed candidates surveyed, as they received salaries less than minimum wages fixed by the State. Functioning of Vadodara Urban Development Authority. The reservation of land for specific purposes in the Town Planning (TP) schemes was not made by Vadodara Urban Development Authority (VUDA).

As against Rs.292.31 crore of funds received during the period 2010-15, VUDA could utilise only Rs.118.18 crore. The land acquired for Transport Nagar-cum-Logistic Park during 2000-04 remained undeveloped till date (January 2016). Out of 242 plots allotted to VUDA in 11 TP schemes for residential/commercial units for sale, SEWS housing, parks and garden, etc., only 17 plots could be sold/developed by VUDA. Follow–up Audit on Modernisation of Police Force in Gujarat. Though, adequate number of four-wheeler and two-wheeler vehicles were available with the Home department, some Police Stations were not having the prescribed number of vehicles as per norms of Bureau of Police Research and Development. Police Communication Network (POLNET) remained non-functional since its installation. Non-acquisition of land by Ahmedabad Urban Development Authority resulted in non-utilisation of pipes laid. Awarding of printing work of revised curriculum and syllabus without resorting to e-tender process by Gujarat Council of Educational Research and Training (GCERT) to an agency at a conditional rate resulted in extra avoidable payment of Rs.6.69 crore and undue favour to the agency. Contractual employee was suspended and reinstated in regular pay scale as if he was a government servant resulting in irregular payment of subsistence allowance and salary of Rs.66.88 lakh.

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Report No 4 of 2015 – Revenue Sector Government of Gujarat

Overview

This Report contains 12 paragraphs and one Performance Audit involving Rs.154.81 crore. Significant audit findings related to major state revenues are value added tax, stamp duty and registration fees, tax on vehicles etc.

The total revenue receipts of the Government of Gujarat in 2014-15 were Rs.91,977.78 crore. The State’s revenue from tax receipts was Rs.61,339.81 crore, non-tax receipts was Rs.9,542.61 crore, State’s share of divisible Union taxes Rs.10,296.35 crore and grants-in-aid from the Government of India were and Rs.10,799.01 crore.

In the Performance Audit of System of registration, assessment and collection under VAT, we noticed the system deficiencies mainly consisted of non-conduct of drive or survey to identify and bring the URDs under tax net, absence of uniform policy for levy and assessment of entry tax and purchase tax, lacunae in notification for remission of tax on sale of oiled/de-oiled cakes of cotton seeds etc. Further, our test check revealed non-levy/short levy of tax to the tune of Rs.124.21 crore in respect of the cases scrutinised by the Department.

Audit of “Registration and safety of school buses, vans, etc. under the Motor Vehicles Act” revealed that the Gujarat Motor Vehicles Department was not in a position to properly monitor the renewal of permits and fitness certificates. It was also unable to curb the menace of overcrowding of school buses/ vans and auto rickshaws despite the restriction of maximum passengers that are allowed to be carried.

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Report No 5 of 2015 – Economic Sector Government of Gujarat

Overview

This Report contains Performance Audit (PA) of “Conservation of Wetlands” of Forests and Environment (F&E) Department and Compliance Audit observation including two theme based audits namely (i) “Construction of High Level Canals” by Water Resources Department and (ii) “Functioning of Common Effluent Treatment Plants” under Forests & Environment Department and nine individual audit observations on the expenditure transactions of Government Departments.

PA of “Conservation of Wetlands” revealed the deficiencies in conservation of wetlands viz., non-provision of funds in State budget estimate for the activities, non-maintenance of baseline data of migratory birds, non-setting up of Birds Rescue Centre/non provision of facilities at some of the wetlands, not undertaking conservation activity at two important wetlands etc. Inadequate monitoring over the conservation of wetlands both at the Department level as well as Steering Committee level was observed.

In addition to above mentioned PA and theme based audits, nine other individual paragraphs having significant audit findings relating to loss, excess payment, extra expenditure, and loss of interest aggregating to Rs.31.07 crore noticed during the compliance audit of Roads And Buildings Department, Forests and Environment Department, Industries and Mines department, Narmada, Water Resources, Water Supply & Kalpsar Departments and Finance Departments are give in the Report.

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