CAG raps Maharashtra urban development dept over pending utilisation certificates, idle funds

Mumbai, Jul 10 (PTI) The Urban Development Department has attracted the sharpest strictures from the CAG for staggering Rs 11,040 crore outstanding utilisation certificates and nearly Rs 8,000 crore parked idly in bank accounts, according to the State Finances Audit Report tabled in the Maharashtra assembly on Friday. The Comptroller and Auditor General (CAG) report for 2024-25 exposed failures across several state ministries, slamming the administration for weak financial controls, unauthorised spending, and "injudicious re-appropriation" of public funds totalling tens of thousands of crores. The CAG report stated that the Urban Development Department had outstanding utilisation certificates worth Rs 11,040.06 crore, the highest among all departments, besides unspent DDO-operated bank account balances amounting to Rs 7,970.24 crore. It was observed that the pendency of utilisation certificates and large idle balances reflected weak financial control and inadequate monitoring of public funds. The report also flagged several other departments for significant financial irregularities. According to the CAG, the Medical Education and Drugs Department recorded the highest amount of pending detailed contingent (DC) bills at Rs 2,212.43 crore, largely linked to procurement through Haffkine Bio-Pharmaceuticals. The Planning Department had the second-highest outstanding utilisation certificates of Rs 5,804.88 crore, and also figured among the departments with substantial pending DC bills. The CAG noted that the Water Resources Department had outstanding utilisation certificates amounting to Rs 3,601.83 crore and was also pulled up for "injudicious re-appropriation" of funds, while the Public Health Department was criticised for pending DC bills of Rs 769.50 crore and for resorting to abstract contingent bills to rush expenditure during the final quarter of the financial year. The report documented wider systemic failures in the state's financial management, with the CAG pointing to unauthorised expenditure, idle parking of public funds and long-pending financial irregularities. It stated that the state incurred excess expenditure of Rs 763.05 crore during 2024-25 under two grants and four appropriations, while excess expenditure of Rs 3,025.76 crore incurred between 2017 and 2024 remained unregularised by the legislature. The CAG also questioned the financial management of the Mukhyamantri Majhi Ladki Bahin Yojana, stating that the scheme witnessed excess expenditure of Rs 3,541.16 crore. It further noted that Rs 15,586 crore was drawn during the last quarter of the financial year and parked in Virtual Personal Deposit Accounts without immediate requirement, violating budgetary discipline. The report stated that the government obtained supplementary provisions of Rs 29,742.51 crore in 62 cases despite actual expenditure remaining below the original budget allocation, rendering the additional provisions unnecessary. It also observed that Rs 15,298.83 crore remained unspent in Drawing and Disbursing Officers' (DDO) bank accounts, while another Rs 20,993.06 crore was parked in Virtual Personal Deposit Accounts instead of being surrendered to the treasury at the close of the financial year. The CAG also highlighted instances of misclassification of expenditure that distorted the state's fiscal position, citing that revenue expenditure worth Rs 4,069.91 crore, including grants-in-aid, was incorrectly booked as capital expenditure, thereby understating the revenue deficit. The audit report observed that repayments relating to Maharashtra State Road Development Corporation (MSRDC) borrowings, including Rs 2,089.48 crore towards interest and Rs 315 crore towards principal, were booked under capital outlay despite not resulting in the creation of any capital asset. The CAG also criticised the state for classifying expenditure of Rs 15,002.06 crore and receipts of Rs 11,710.20 crore under the omnibus "Minor Head 800 — Other Expenditure/Receipts" even though specific accounting heads were available, saying the practice reduced transparency and obscured the true nature of financial transactions. PTI ND ARU