Assam Zilla Parishads received funds without budget approval

A report from the Comptroller and Auditor General (CAG) revealed that no Zilla Parishads in Assam had their annual budgets approved from 2018 to 2023. Despite this, funds were regularly released and used, which breaks the rule that requires budget approval before spending. The CAG report, presented in the assembly, noted that only 7 to 50 percent of the Zilla Parishads submitted their budgets to the Commissionerate of Panchayat and Rural Development. Because these budgets were not properly submitted, they were not approved by the government. As a result, funds were disbursed without following the necessary procedures. The report highlights ongoing issues with the Panchayati Raj Institutions (PRIs) in Assam. It states that the transfer of funds, functions, and authority to PRIs is incomplete. Although 23 out of 29 subjects have been identified for devolution, only seven subjects have been officially transferred. No functions had been transferred to PRIs as of October 2023. Additionally, as of March 2023, there were 456 pending utilization certificates worth ₹ 3,971.52 crore dating back to 2001-02. Without these certificates, it is unclear whether the funds were spent as intended. The report also mentioned that 1,684 audit issues worth ₹ 1,660.80 crore were unresolved due to lack of responses. Furthermore, the report indicated a decline in the revenue generated by PRIs over the past five years, suggesting a lack of effort to enhance their financial independence. It also stated that while there is a system in place to track asset creation through eGramSwaraj, it was not utilized. Consequently, assets could not be effectively monitored, raising concerns about potential mismanagement.