Thiruvananthapuram: An audit report by the Comptroller and Auditor General (CAG) of India has found Rs 2,206 crore meant for some local self-government bodies (LSGs) in Kerala has lapsed.
The fund was part of Rs 7,012 crore Central assistance extended to LSGs that had performed well. The amount lapsed after the State government failed in handing it over to beneficiary LSGs. According to norms, the State should have transferred the amount to LSGs within 15 days of receiving it.
The State government justified its act saying the fund was withheld since the LSGs had not even utilised its earlier budgetary allocations. The LSGs, however, pointed out that the treasury restrictions prevented them from utilising the allocations, the report pointed out.
The government had slashed the financial assistance to LSGs to Rs 22,192 crore in the financial year 2019-2020 from the earlier Rs 31,486 crore. Not a single penny was spent from the Rs 1 crore each allocated for 82 projects in the budget. As many as 295 construction activities, including some started 29 years ago, were to be completed by March 31, 2020.
The report also stated the revenue deficit and financial deficit showed a gradual increase between 2015-16 and 2018-19. The revenue deficit, however, decreased to Rs 2,967 crore in 2019-2020.
Though the revenue had dipped by Rs 2,629 crore, the deficit showed a downtrend trend after the government slashed the expenditure by Rs 5, 596 crore.
