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700 out of 900 pension cases cleared says AG
Correspondent Kohima, Mar 30 (NPN):
Published on 31 Mar. 2011 12:50 AM IST
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Out of the 3900 pension cases as reported by the state government in the floor of the house, the Accountant General Office has so far received around 900 cases of which around 700 cases has been cleared.
Only if there is any deficiency detected in the pension document, the AG office sent them back to the department concerned which in fact do take time. Accountant General Rajesh Singh, IAAS told media persons while briefing on the CAG report at his office chamber here today. He also revealed that there is a ceiling limit of 3 months for the AG to clear such pension cases failing which it goes to the CAG.
He also revealed that the AG staff will be going to major department starting tomorrow with the police department to impart training on processing pension papers and it will continue with other major department for a week each and expressed hope that it would be able to disposed of 80% of the pensions in five weeks time.
Singh also revealed that the CAG has authorized the state government department to resolve upto 75% of the gratuity funds and even went to the extent of suggesting that the state can even release pension which can be later on adjusted.
The AG also regretted that the GPF and other pension papers are supposed to be prepared one year ahead of retirement of government employee and the documents should reach the AG office before six months but the same was not done in the state which paves the way for corruptions.
On the CAG report, he said that the role of Accountant General is to support the government to achieve its objective which is followed up by the Public Account Committee (PAC) of the state government and it is the department officials to clarify to the PAC. The state government has to manage it account, he added.
Reacting to a query on the state fiscal health, he said that the indicator in the fiscal health of the Government of Nagaland is reflected in the fiscal management bill which the state legislative assembly had passed. The state government is aware of all loses it is incurring he said and hoped that the state government is taking all steps.
Highlighting the state fiscal position reflected in the CAG report, he said that the fiscal health of the State, viewed in terms of key fiscal parameters revenue, fiscal and primary deficits, had declined during 2009-10 over the previous year. The State’s revenue surplus had declined by Rs.44.03 crore while the fiscal deficit had increased by Rs.180.93 crore and the primary deficit had also increased by Rs.132.41 crore in 2009-10 relative to the previous year.
During 2009-10, 92 per cent of the total revenue came from the Government of India as Central Transfers (12 per cent) and grants-in-aid (80 per cent) while the state Own Tax Revenue was more than the assessment made by the State Government but remained 27.68 per cent less than the assessment of TFC for 2009-10 whereas the Non-Tax Revenue receipts exceeded the assessment made by the TFC but was 23.45 per cent less than the assessment made by the State Government in 2009-10.
He also revealed that the Central Government had directly transferred an approximate amount of Rs.957.33 crore to the State Implementing Agencies during 2009-10 for implementation of various schemes/programmes in social and economic sectors recognized as critical. Out of a total amount of Rs.957.33 crore directly transferred to implementing agencies during the year, Rs.750.07 crore (93.50 per cent) was transferred for four Central schemes - National Rural Employment Guarantee Programme, Rs. 562.95 crores (58.80 per cent), Sarva Shiksha Abhiyan Rs.67.54 crore (7.06 per cent), Pradhan Mantri Gram Sadak Yojana Rs.60.02 (6.27 per cent) and National Rural Health Mission Rs.59.56 crore (6.22 per cent).
The total expenditure of the State during 2009-10 at Rs.4245.52 crore increased by Rs.501.43 crore (13.39 per cent) over the previous year. Out of the total expenditure in 2009-10, revenue expenditure was 76.61 per cent (Rs.3252.44 crore) while capital expenditure was 23.31 per cent (Rs. 989.53 crore) and loans and advances was 0.08 per cent (Rs.3.55 crore).
The increase in total expenditure in 2009-10 over the previous year was due to increase of Revenue Expenditure by Rs.362.90 crore on Capital expenditure by Rs.136.44 crore and disbursement of loan and advances by Rs.2.09 crore. The development expenditure during 2009-10 (Rs.2467.96 crore) is less than the assessment made by the State Government in the budget by Rs.190.13 crore. The developmental revenue and capital expenditure increased by 8.29 per cent (Rs.127.76 crore) and 13.07 per cent (Rs.92.01 crore) respectively over the previous year.
During 2009-10 the expenditure on salaries under Non-Plan and Plan is Rs.1405.90 crore and Rs.36.95 crore respectively. Salary and wages accounted for 38.79 per cent of the revenue receipts. Salary expenditure was 55.26 per cent of revenue expenditure which was much higher than the norm of 35 per cent recommended by the Twelfth Finance Commission.
The growth rate of fiscal liability was 18.18 per cent during 2009-10 over previous year and the ratio of fiscal liabilities to GSDP has increased from 60.52 per cent in 2008-09 to 63.75 per cent in 2009-10. These fiscal liabilities stood at nearly 1.45 times the revenue receipts and 17.60 times of the State’s own resources at the end of 2009-10.Though the Government had invested Rs.192.09 crore in Statutory Corporations, Rural Banks, Joint Stock companies and Co-operatives, the average return on this investment was ‘NIL’ during the last five years while the Government paid an average interest rate of 11.50 per cent on its borrowing during the period 2006-10. Out of the total provision amounting to Rs.443.89 crore, in 16 schemes, Rs.351.85 crore (79 per cent) were surrendered, he stated in a handout.
On Border Area Development Programme (BADP), it states that the performance audit revealed that prioritized sectors like education, health, electricity and drinking water supply, as envisioned in the perspective plans and baseline survey reports, were not accorded priority while formulating the annual work programmes.
The Department spent Rs. 90.69 crore (44 per cent) in road section and Rs.74.05 crore (36 per cent) in social infrastructure while Rs.40.36 crore (20 per cent) was spent on prioritized sectors like agriculture, education, health, power and providing drinking water supply. Thereby, the implementation of the programmes to improve the socio-economic development of the under development areas was flawed since the prioritized sectors as identified in the perspective plan and baseline survey report were ignored which was compounded by inadequate financial management.
Further, he also pointed out that an amount of Rs.6.74 crore was kept in Civil Deposit during 2005-06 and 2009-10 and was reported as final expenditure by the Department, thereby inflating the actual expenditure to that extent. Moreover, the claim of 100 percent achievement by the Department proved unreliable as 17 projects out of 46 projects that were physically verified were incomplete, three works were not taken up at all and full payments had been released for some unexecuted works. Funds of Rs.1.30 crore meant for Border Area Development Programmes were spent on 21 projects in 23 non-border villages during 2007-10 in violation of BADP guidelines.
On Civil deposit, he said Project Engineer, Police Engineering Project Division, Chumukedima fraudulently drew an amount of Rs.4.11 lakh on fictitious bills and Rs.2.92 lakh by inflating the totals of salary bills.
Asked why the CAG report mentioned particular designated officials such as the DGP with regard to fraudulent drawls of money on fictitious bills etc, the AG explained it didn’t mean that these officials were the ones connected to the matter. The point was those particular offices they ran the affairs of, he stated. He, however, disclosed that as per the Constitution, they sent draft queries to all the departments with regard to the auditing matters and they had to reply within 6 weeks. Similarly, SP, Dimapur fraudulently drew an amount of Rs. 9.11 lakh by inflating the totals of salary bills and there was a suspected misappropriation of an amount of Rs. 3.73 crore during the period December 2008 to June 2009 in the Public Works Department (Roads and Bridges) South division, Kohima which was done by recording higher amounts in the Cash book against issue of cheques for lesser amounts to other divisions. Executive Engineer, Nagaland PWD (Roads and Bridges), Dimapur made an excess payment of` Rs. 62 lakh to a contractor for unexecuted items of work and un-adjustment of medical advances of Rs.1.69 crore due to laxity of the Education Department. Deputy Inspector of School, Aghunato drew Rs. 3.42 lakh, Deputy Inspector of School, Zunheboto drew Rs.3.13 lakh and Head Master, Government High School, Aghunato drew Rs.1.98 lakh by presenting fraudulent ACPS arrear claims.
Director, Rural Development Department kept Rs.4.52 crore outside the government Account in violation of rules and an excess payment of Rs.1.13 crore to suppliers by applying higher rate of Central Sales Tax by two Executive Engineers under Public Health Engineering Department. There was also excess expenditure of Rs.42.87 lakh to a supplier by allowing higher rate for GMS pipes by Chief Engineer, Public Health Engineering Department and an advance of Rs.219.33 lakh was paid to a supplier who failed to supply material worth Rs.21.06 lakh by the Director, Public Health Engineering (Urban) Division, Dimapur and Public Health Engineering (Store) Division, Dimapur.
In Employment and Craftsmen Training, material worth Rs.60.16 lakh was lying idle in the store even after 30 months of the targeted date of completion of the project and an amount of Rs.88 lakh was spent for purchase of a land that was donated free of cost for Zunheboto College in 1985 by the Department of Higher Education. An amount of Rs. 23.68 lakh was paid towards honorarium to Enumerators/Supervisors and data entry fee over the norms fixed by the Ministry by the Director of Veterinary and Animal Husbandry. Besides, the Department incurred a fictitious expenditure of Rs.25.82 lakh on development of software and printing of the census report.
On integrated Audit of Agriculture Department, he said the planning process in the Department was flawed as it was done at the Directorate level without ascertaining regional priorities and needs from field functionaries and beneficiaries.
Figures of projects and achievements in foodgrain production which formed the basis of plan documents were also not reliable. Besides, Budgeting was unrealistic in view of persistent savings under Plan and excess expenditure under Non-plan during 2009-10.
Contingency bills for payment of casual labourers amounting to Rs.0.44 crore was irregularly drawn by Joint Director, State Agricultural Research Station, Mokokchung from Major Head of Fisheries and Rural Employment during 2005-06 till August 2010. Scheme funds amounting to Rs.10.33 crore was paid to officers in charge of schemes/programmes during 2009-10.
On Revenue Receipts, he said during the period from 2003-04 to 2008-09, the Departments/Government accepted audit observations involving Rs.11.77 crore of which Rs.0.36 crore only had been recovered till September 2010. The amount recovered by the departments was only 3.06 per cent of the amount accepted by them.
Due to non adherence to the provision of the NVAT Act/rules regarding deduction of tax at source on works contract from the contractors’ bill, there was non-realization of Government revenue amounting to Rs.81.08 lakh by the Public Works Department. Director SCERT allowed exemption of NVAT to a supplier resulting in loss of revenue of Rs.15.64 lakh.
On Commercial and Trading activities of the Government Companies, he said in Nagaland, there are six State PSUs (all Government companies) of which, one Government company was non working.
The State working PSUs registered a turnover of Rs.4.06 crore for 2009-10, as per their latest finalised accounts as of November 2010. This turnover was equal to 0.05 per cent of State Gross Domestic Product. The State working PSUs incurred an overall loss of Rs.2.57 crore in the aggregate for 2009-10 as per their latest finalised accounts.
Out of five working PSUs three PSUs had employed 245 personnel during 2009-10. Remaining PSUs did not furnish the details.

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