Assam Government Invested ₹1,970 Crore in PSEs Without Updated Accounts: CAG Report

Major Fund Allocations Despite Years of Pending Financial Statements

Guwahati: The Comptroller and Auditor General (CAG) of India has raised concerns over the Assam government’s financial management, revealing that ₹1,970 crore was allocated to State Public Sector Enterprises (SPSEs) despite many of them having outdated accounts. The CAG report for 2022-23, tabled in the Assam Assembly, highlighted that these enterprises had financial records pending for one to sixteen years, posing risks of mismanagement and misuse of public funds.

CAG Recommends Halting Funds to SPSEs with Pending Accounts

The audit report recommended that the Assam government refrain from providing further financial assistance to SPSEs unless they clear their arrears in financial statements. It further suggested that a special finance cell be set up to monitor and ensure timely finalization of accounts.

Key Findings of the CAG Report

1. ₹1,976.37 Crore Allocated to 19 SPSEs

   • The Assam government invested this amount despite these enterprises failing to update their financial records.

2. Major Recipients of Funds

   • Nine SPSEs received ₹1,939.60 crore, which accounts for over 98% of the total funds allocated.
   • The Assam Hills Small Industries Development Corporation Ltd has the longest delay, with its last finalized accounts dating back to 2006-07 (16 years).
   • Assam Tea Corporation Ltd has pending accounts for eight years, while other corporations, such as Assam Livestock and Poultry Corporation Ltd and Assam State Development Corporation for Scheduled Castes Ltd, have delays of five years each.

3. Concerns Over Budgetary Support for Salaries

   • Four SPSEs with pending accounts for over five years received ₹692.21 crore, of which ₹614.13 crore was used for salaries, increasing the financial burden on the state budget.
   • The absence of audited accounts raises concerns about accountability in fund utilization.

CAG Warns of Financial Risks, Suggests Corrective Measures

The report cautioned that the lack of timely financial audits could lead to financial mismanagement, fraud, and leakage of public funds. To address this, the CAG suggested:

• Setting up a special monitoring cell under the Finance Department to expedite account finalization.
• Outsourcing financial management tasks for SPSEs lacking adequate expertise.
• Imposing penalties on SPSE management failing to update accounts.

Government’s Next Move: Will Funding Be Stopped?

With the CAG’s strong recommendation to halt funding until financial transparency is ensured, it remains to be seen how the Assam government responds. The issue is expected to spark political debates, with opposition parties likely to demand accountability and action against the defaulting enterprises.

As financial mismanagement concerns grow, stakeholders and citizens await the government’s strategy to ensure transparency, accountability, and better governance of public funds.