Source: ‘State Finances Audit Report,’ Government of Nagaland, Report No 1 of year 2024, Comptroller and Auditor General (CAG) of India, based on information furnished by O/o the PAG (A&E) Nagaland.
Morung Express News
Dimapur | March 10
The delay in submission of Utilisation Certificates (UCs) continues to be a pressing issue in Nagaland, with 145 UCs, amounting to Rs 252.10 crore, still pending as of March 31, 2023, for periods up to 2022-23, according to the latest report from the Comptroller and Auditor General (CAG) of India.
The ‘State Finances Audit Report’ for the year ending March 31, 2023, was tabled in the Nagaland State Assembly on March 8.
The report reveals that of the total pending UCs, 33 UCs for the period up to 2016-17, totaling Rs 117.51 crore, have yet to be submitted. For the fiscal year 2021-22, UCs for 51 projects, amounting to Rs 64.14 crore, are still due, as detailed in the year-wise breakdown of pending UCs provided in the report.
Additionally, in the financial year 2022-23 alone, 105 grants amounting to Rs 86.65 crore were distributed to 19 departments, with their UCs now due for submission in 2023-24.
Planning & Coordination, I&C key defaulters
Among the main defaulters, the Planning & Coordination Department has Rs 125.59 crore inpending UCs, followed by the Industries & Commerce Department with Rs 69.11 crore, and the Health & Family Welfare and Youth Resources & Sports Departments, both with Rs 20.18 crore each.
Other notable defaulters include the Rural Development, Social Welfare, Geology & Mining, School Education, Municipal Affairs, and CM Secretariat departments.
Incidentally, the latest status, though still high, represents a decrease from previous years. It was as high as Rs 609.07 crore for the period up to 2020-21, which decreased to Rs 398.14 crore the following year.
The outstanding amount of Rs 252.10 crore in 2022-23 marks a 36.7% decrease from 2021-22.
High pendency raises concerns
The General Financial Rules (GFR) 2017 require that UCs be submitted within 12 months of a grant's disbursement to certify proper fund utilization. However, many departments have failed to comply with this requirement, according to the CAG report.
The backlog of pending UCs violates financial rules and reflects poor monitoring mechanisms within the State Government. The CAG warned that this high pendency poses a significant risk of misappropriation of funds.
Failure to submit UCs means authorities have not provided evidence that the funds were spent, or if spent, whether it was for the intended purpose. The report highlights that the backlog points to systemic lapses in monitoring and internal controls.
The CAG also raised concerns about transparency and accountability, emphasizing that the absence of UCs makes it impossible to verify whether funds were used appropriately. Furthermore, this could jeopardize the State’s chances of securing future central grants, as pending UCs are often a factor in fund allocation.
Government response
As per the CAG, during the ‘Exit Conference’ held on December 6, 2023, the Secretary of the Finance Department acknowledged the issue, stating that steps have been initiated to reduce outstanding UCs.
However, the Department did not highlight any specific steps to as corrective measures, it added, recommending for corrective follow-ups for submission of UCs in timely manner.
