Andhra Pradesh Ministry of Finance scurries to things together with the right button The New Indian Express
Amaravati: The Andhra Pradesh Ministry of Finance has started a damage control exercise after the Comptroller and Auditor General exposed several shortcomings in the state’s financial management.
Firstly, it was the violation of the codified bill payment provisions, amounting to Rs 41,000 crore, which the Chief Accountant General found fault with.
Next, the PAG also pointed to several inappropriate orders relating to the reappropriation of budgetary funds in the 2020-21 financial years.
Although Senior State Finance Secretary SS Rawat responded to PAG’s May 4 letter on bill payments, PAG said to have expressed displeasure over it as there was nothing left to prove that he There was “authorization” for the payments made, official sources here said.
State authorities, including Finance Minister Buggana Rajendranath, blamed it on “software” in the glitches (CFMS Comprehensive Financial Management System) and maintained there was nothing wrong with the payments.
Even as this issue remained outstanding, the PAG sent another missive to the Ministry of Finance, indicating that during the year 2020-21, a total of 143 reappropriation orders were found were uploaded in CFMS, of which none contained “remarksreasons” for this reappropriation.
“This will hamper the finalization of the ownership of the accounts negatively,” the PAG had said.
The Ministry of Finance sent a missive to all the other ministries, asking them to explain the reasons for the reappropriation (of the funds).
“Proposals for reappropriation of funds are sometimes received in this department without clear reasons and justification,” Finance Secretary (Budget and Institutional Funding) KVV Satyanarayana said in a memo distributed to all departments last week.
Pursuant to the provisions of Chapter 17 of the Handbook of the PA budget, the appropriation and cost savings reasons should be clearly explained and fully upon the issue of re-appropriation orders, he said.
Although the exact number is not known, Ministry of Finance sources pointed out that the amount involved in misappropriation could reach hundreds of millions of rupees.
“All of this reflects very poorly, not only in the budget books, but also on the overall financial management process. ACG scrutinizes these things meticulously and there are no leaks if something is wrong,” a senior finance executive remarked.