State Finances Audit Report of the

Comptroller and Auditor General of India

for the year ended 31 March 2022

Government of Chhattisgarh
Report No. 1 of the year 2023
 State Finances Audit Report of the
Comptroller and Auditor General of India

for the year ended 31 March 2022

Government of Chhattisgarh
Report No. 1 of the year 2023
 Table of Contents
Paragraph No. Page No.
Preface -- vii
Executive Summary -- ix
Chapter I: Overview
Profile of the State 1.1 1
Gross State Domestic Product of the State 1.1.1 1
Basis and Approach to State Finances Audit Report 1.2 3
Report Structure 1.3 4
Overview of Government Accounts Structure 1.4 4
Budgetary Processes 1.5 7
Snapshot of Finances 1.5.1 7
Snapshot of Assets and liabilities of the Government 1.5.2 8
Fiscal Balance: Achievement of deficit and total debt targets 1.6 9
Compliance with provisions of State FRBM Act 1.6.1 9
Disclosures made under CGFRBM Act during 2021-22 1.6.2 11
Deficit and Surplus 1.6.3 12
Trends of Deficit/Surplus 1.6.4 13
State Finance Commission 1.7 14
Deficits and Total Debt after examination in Audit 1.8 16
Post audit - Deficits/surplus 1.8.1 16
Post audit - Total Debt/ liabilities 1.8.2 17
Chapter II: Finances of the State
Introduction 2.1 19
Sources and Application of Funds 2.2 19
Resources of the State 2.3 21
Receipts of the State 2.3.1 21
Revenue Receipts 2.3.2 22
Trends and growth of Revenue Receipts 2.3.2.1 22
State’s Own Resources 2.3.3 24
Own Tax Revenue 2.3.3.1 24
State Goods and Services Tax (SGST) 2.3.3.2 26
Non-Tax Revenue 2.3.3.3 26
Transfer of funds from the Centre 2.3.3.4 27
Grants-in-Aid from Government of India 2.3.3.5 28
Fifteenth Finance Commission Grants 2.3.3.6 29
Receipts under Capital Section 2.3.3.7 30
State’s performance in mobilization of resources 2.3.4 31
Application of Resources 2.4 31
Growth and composition of expenditure 2.4.1 31
Revenue Expenditure 2.4.2 34
Major Changes in Revenue Expenditure 2.4.2.1 36
Committed and Non-Committed Expenditure 2.4.2.2 37
Un-discharged Liability under National Pension System 2.4.2.3 39
Financial assistance by the State Government to Local Bodies
2.4.2.4 40
and other Institutions

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State Finances Audit Report for the Year ended 31 March 2022

Table of Contents
Paragraph Page
No. No.
Capital Expenditure 2.4.3 41
Major changes in Capital Expenditure 2.4.3.1 41
Quality of Capital Expenditure 2.4.3.2 42
Capital blocked in incomplete projects 2.4.3.3 45
Expenditure priorities 2.4.4 46
Object head wise expenditure 2.4.5 47
Public Account 2.5 48
Net Public Account Balances 2.5.1 48
Reserve Funds 2.5.2 49
Consolidated Sinking Fund 2.5.2.1 50
State Disaster Risk Management Fund 2.5.2.2 50
Guarantee Redemption Fund 2.5.2.3 51
Debt management 2.6 52
Debt profile: Components 2.6.1 52
Components of fiscal deficit and its financing pattern 2.6.2 55
Debt profile: Maturity and Repayment 2.6.3 56
Debt Sustainability Analysis (DSA) 2.7 56
Trend of Outstanding Public Debt for Repayment in upcoming
2.7.1 59
Years
Utilisation of borrowed funds 2.7.2 61
Guarantees – Contingent Liabilities 2.7.3 61
Management of Cash Balances 2.7.4 62
Conclusion 2.8 64
Recommendations 2.9 65
Chapter III: Budgetary Management
Introduction 3.1 67
Budget Process 3.2 67
Financial Accountability and Budget Review 3.3 68
Gender Budget 3.3.1 68
Youth Budget 3.3.2 68
Agriculture Budget 3.3.3 69
Child Budget 3.3.4 69
Major Policy Initiatives/New Schemes 3.3.5 69
Appropriation Accounts 3.4 70
Summary of Appropriation Accounts 3.4.1 70
Utilisation of Budgeted Funds 3.4.2 71
Comments on Integrity of Budgetary and accounting process 3.5 71
Misclassification of capital expenditure as revenue expenditure 3.5.1 71
Unnecessary or excessive supplementary grants 3.5.2 73
Unnecessary or excessive re-appropriation 3.5.3 75
Entire budget provision not utilised under sub-heads 3.5.4 76
Large savings/surrenders 3.5.5 76
Missing/ Incomplete Explanation for Variation from Budget 3.5.6 77

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 Table of contents

Table of Contents
Paragraph Page
No. No.
Excess expenditure and its regularization 3.5.7 79
Rush of Expenditure 3.6 81
Status of DDO Accounts 3.7 83
Review of selected Grants 3.8 83
Grant No 03 - Police 3.8.1 83
Budget and Expenditure 3.8.1.1 83
Injudicious budget proposal 3.8.1.2 84
Surrender of savings 3.8.1.3 85
Unnecessary supplementary grants and subsequent surrender
3.8.1.4 85
under the scheme
Persistent savings under Scheme Heads 3.8.1.5 85
Non-utilisation of budget provision during 2021-22 3.8.1.6 86
Non-reconciliation of departmental expenditure figures 3.8.1.7 87
Rush of expenditure 3.8.1.8 87
Grant No. 30- Expenditure pertaining to Panchayat and Rural
3.8.2 88
Development Department
Budget and expenditure 3.8.2.1 89
Non-utilisation of budget provision during 2021-22 3.8.2.2 89
Persistent savings under Scheme Heads 3.8.2.3 90
Rush of Expenditure 3.8.2.4 92
Surrender of complete/entire budget provision 3.8.2.5 93
Blockade of funds 3.8.2.6 94
Conclusion 3.9 94
Recommendations 3.10 95
Chapter IV: Quality of Accounts & Financial Reporting Practices
Introduction 4.1 97
Delay in Submission of Utilisation Certificates 4.2 97
Pending DCC Bills 4.3 97
Timeliness and Quality of Accounts 4.4 99
Outstanding balances under Suspense and DDR Heads 4.5 99
Personal Deposit (PD) Accounts 4.6 100
Funds relating to Land acquisition kept in PD Accounts 4.6.1 101
In-operative PD Accounts 4.6.2 102
Accounting of Transactions Relating to Central Road Fund 4.7 102
Infrastructure Development Fund 4.7.1 103
Environment Fund 4.7.2 103
Funds outside Public Account of the State 4.8 104
Year-wise receipt and utilisation of Labour Cess 4.8.1 104
Booking under Minor Head-800 4.9 105
Booking under Minor Head - 800 - other receipts for more than
4.9.1 107
`50 crore
Booking of Royalty under Minor Head - 800 - other receipts 4.9.2 107
Non-Reconciliation of Departmental Figures 4.10 108
Reconciliation of Cash Balance 4.11 109
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State Finances Audit Report for the Year ended 31 March 2022

Table of Contents
Paragraph Page
No. No.
Compliance with Indian Government Accounting Standards 4.12 110
Submission of Accounts/Separate Audit Reports of
4.13 111
Autonomous Bodies
Cases of Losses and Defalcation, etc. 4.14 111
Off Budget Borrowing 4.15 112
Funds transferred directly to State Implementing Agencies 4.16 113
Single Nodal Accounts 4.17 114
Follow-up on Audit Reports 4.18 115
Conclusion 4.19 116
Recommendations 4.20 116
Chapter V: Financial Performance of State Public Sector Undertakings
Introduction 5.1 117
Definition of Government Companies/Corporations 5.2 117
Mandate of Audit 5.3 117
State Public Sector Undertakings and their contribution to the
5.4 118
Gross State Domestic Product
Audit of Public Sector Undertakings including
5.5 118
Government Companies and Corporations
Investment in Public Sector Undertakings and Budgetary
5.6 119
support
Equity holding and loans 5.6.1 119
Adequacy of Assets 5.6.2 120
Information on Subsidy, Grants by Central/State Government 5.6.3 120
Returns from Public Sector Undertakings 5.7 121
Profit earned by PSUs 5.7.1 121
Dividend paid by Public Sector Undertakings 5.7.2 122
Debt Servicing 5.8 122
Interest Coverage Ratio 5.8.1 122
Dues of CSPDCL to Power Generation Companies 5.8.2 123
Operating Efficiency of Government Companies 5.9 124
Profit earned (analysis of profit reporting from operating
5.9.1 124
activities/other income)
Return on Capital Employed 5.9.2 124
Rate of Real Return on the basis of historical Cost of Investment 5.9.3 125
Return on Investment on the basis of Present Value of
5.9.4 125
Investment
Public Sector Undertakings incurring losses 5.10 127
Losses incurred 5.10.1 127
Erosion of Capital in Public Sector Undertakings 5.10.2 127
Oversight role of Comptroller and Auditor General of India 5.11 128
Audit of Public Sector Undertakings 5.11.1 128

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 Table of contents

Table of Contents
Paragraph Page
No. No.
Appointment of Statutory Auditors of Public Sector
5.11.2 129
Undertakings by Comptroller and Auditor General of India
Submission of accounts by Public Sector Undertakings 5.12 129
Need for timely submission 5.12.1 129
Timelines in preparation of accounts by Public Sector
5.12.2 130
Undertakings
Comptroller and Auditor General of India's oversight-Audit of
5.13 131
accounts and supplementary audit
Financial reporting framework 5.13.1 131
Supplementary Audit of accounts of Public Sector
5.13.2 131
Undertakings
Result of Comptroller and Auditor General of India's oversight
5.14 132
role
Audit of accounts of Public Sector Undertakings under Section
5.14.1 132
143 of the Companies Act, 2013
Significant comments of the Comptroller and Auditor General
5.14.2 132
of India issued as supplement to the Statutory Auditors' reports
Non-compliance with provisions of Accounting Standards/
5.15 134
Indian Accounting Standards
Management Letters 5.16 135
Conclusion 5.17 136
Recommendation 5.18 137

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State Finances Audit Report for the Year ended 31 March 2022

Table of Contents
Appendix Page
Appendices
No. No.
State Profile 1.1 139
Time Series Data on State Government Finances 2.1 140
Details of Schemes which are 100 per cent women centric
3.1 143
during 2021-22
Details of Schemes which are 100 per cent Youth centric during
3.2 144
2021-22
Details of Major Policy initiatives/New Schemes (`1 crore or
3.3 145
more in each cases) where entire Grant was not utilised
Details of cases where supplementary provision (`50 lakh or
3.4 146
more in each case) proved unnecessary
List of Sub Heads where entire Budget provision was not
3.5 148
utilized (`10 crore or above)
List of grants having large savings (savings above `100 crore)
3.6 151
during the year 2022
List of grants having large savings (savings above `500 crore)
3.7 154
during the year 2022
Details of surrender of funds in excess of (`10 crore) at the end
3.8 155
of March 2022
Sub-Heads requiring Explanation for Variation in
3.9 158
Appropriation Accounts
Excess Expenditure over provision for the year 2000-01 to
3.10 161
2020-21
Details of Major Heads having excess expenditure in 2021-22 3.11 162
Details of outstanding Detailed Contingent bills as of 31 March,
4.1 163
2022
Department/category wise details in respect of case of loss to
Government due to theft, defalcation, loss of Government 4.2 164
property/material
Year wise analysis of loss to Government (Cases where
4.3 166
financial action was pending at the end of 31 March 2022)
Details of recovery in various departments 4.4 167
Statement showing the financial position and working results of
PSUs whose accounts were in arrears for three or more years as 5.1 168
on 30 September 2022
Statement showing arrears in finalization of accounts by PSUs 5.1 (b) 169
as on 30 September 2022
Statement showing position of equity and outstanding loans 5.2 171
relating to State PSUs as on 31 March 2022
Public Sector Undertakings information on profit from 5.3 176
operating activities/other income

Page vi
 Preface

This Report has been prepared for submission to the Governor of Chhattisgarh under Article
151 of the Constitution of India for being laid before the State Legislature.
Chapter I of this Report contains the basis, approach and structure of the Report, structure of
Government Accounts, budgetary processes, compliances with Chhattisgarh State Fiscal
Responsibility and Budget Management (CGFRBM) Act targets, trends in key fiscal parameters
like revenue surplus/ deficit, fiscal surplus/ deficit, etc. and fiscal correction path.
Chapters II and III of the Report contain audit findings on matters arising from an examination
of the Finance Accounts and Appropriation Accounts respectively, of the
State Government for the year ended 31 March 2022. Information has been obtained from
Government of Chhattisgarh, wherever necessary.
Chapter IV on ‘Quality of Accounts & Financial Reporting Practices’ provides an
overview and status of the State Government’s compliance with various financial rules,
procedures and directives during the current year.
Chapter V discuss the financial performance of Chhattisgarh State Public Sector Undertakings
(PSUs) and results of oversight role of Comptroller and Auditor General of India (CAG)
through monitoring the performance of statutory Auditors and supplementary audit of accounts
of PSUs. Audit Reports in relation to the accounts of a Government Company or Corporation
are submitted to the Government by the CAG for laying before the Legislature of Chhattisgarh
under the provisions of Section 19A of the Comptroller and Auditor General’s (Duties, Powers
and Conditions of Services) Act, 1971 (as amended).
The Reports containing the findings of Performance Audit and Compliance Audit in
various Government departments, observations arising out of audit of Statutory
Corporations, Boards and Government Companies and observations on Revenue Receipts are
presented separately.
The audit has been conducted in conformity with Auditing Standards issued by the Comptroller
and Auditor General of India.

Page vii
EXECUTIVE SUMMARY
 Executive Summary

1 The Report
Based on the audited accounts of the Government of Chhattisgarh for the year ended 31 March
2022, this Report provides an analytical review of the finances of the State Government.

2 Audit findings

2.1 Fiscal Position

The fiscal position of the State is viewed in terms of three key parameters–Revenue Deficit/
Surplus, Fiscal Deficit/ Surplus, and the ratio of Outstanding Debt to GSDP.
The State had a revenue surplus of `4,642.02 crore as of end of March 2022 as compared to
revenue deficit of `6,856.66 crore as of end of March 2021. However, revenue surplus after
adjusting the impact of misclassification/non-compliance to statutory provisions has been
worked out by Audit as ₹2,082.42 crore. Despite being revenue surplus State, the fiscal priority
accorded to Social sector expenditure by the State Government declined from 40.72 per cent
(2017-18) to 36.56 per cent (2021-22) and it was less than the average of general category
states in the current year. Significant shortfall in expenditure vis-à-vis budget estimates
2021-22 was noticed under the Major Heads 2202 - General Education (₹2,069 crore), 2215-
Water Supply and sanitation (₹488 crore) and 2235-Social Security and Welfare (₹281 crore).
Fiscal deficit relative to Gross State Domestic Product (1.52 per cent) was within the target of
four per cent for FY 2021-22 laid down under the State FRBM Act. Fiscal deficit remained
within the target due to less revenue and capital expenditure by the Government than projected
in the budget. The allocative priority accorded to capital expenditure by the State Government
was less than the average of general category States in 2021-22.
The GSDP of Chhattisgarh grew at a lower rate during 2021-22 compared to the GDP of India.
During 2021-22, the percentage of outstanding debt to GSDP decreased to 22.77 per cent from
25.44 percent in 2020-21 and was within the target prescribed in the Medium Term Fiscal
Policy Statement (28.34 per cent) under the Chhattisgarh Fiscal Responsibility and Budget
Management Act and the Fifteenth Finance Commission.
(Chapter I)

2.2 Finances of the State

The Revenue Receipts registered an increase of 26.08 per cent during 2021-22 compared to
the previous year. Own tax revenue increased by 18.33 per cent and non-tax revenue increased
by 94.08 per cent and achieved the level anticipated in budgetary projections. The State
continued to be dependent on Government of India with 49 per cent of the revenue coming from
State Share of Union Taxes and Duties and Grants-in-aid.
Revenue expenditure which constitute 87 per cent of total expenditure increased by 7.11 per
cent during 2021-22 compared to the previous year. Though the Capital Expenditure increased
by 16.40 per cent over the previous year, its share in total expenditure was merely 12 per cent.
While the revenue expenditure as a percent of GSDP was 18.75 per cent, the capital
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State Finances Audit Report for the Year ended 31 March 2022

expenditure stood at 2.63 per cent of GSDP in 2021-22.

Out of 148 incomplete projects (costing more than ₹10 crore) with estimated cost of ₹4,667.24
crore, the State Government has revised the cost of 49 incomplete projects with cost overrun
of ₹2,255.66 crore. The State Government has not evaluated the cost of 99 incomplete projects.
During 2021-22, GoCG transferred ₹300.00 crore to the Consolidated Sinking Fund against
the minimum requirement of ₹463.57 crore resulting in a short contribution of ₹163.57 crore.
The percentage of net public debt available to the State after repayment of borrowings and
interest decreased to five per cent (₹799.18 crore) in 2021-22 as against 40 per cent (₹8,645.96
crore) in 2020-21. Decline in net debt availability of the State indicates towards increased
burden of servicing of debt and leave the State with limited fund available for development
activities.
The State Government will have to make principal repayment of ₹79,294.17 crore against
Internal Debt and ₹2,248.43 crore against Loans and Advances from Central Government from
2021-22 to 2031-32 besides interest of ₹24,607.46 crore due on market loan.
The total outstanding debt (including public account liabilities) of the State Government at the
end of 2021-22 would be `91,098.74 crore after excluding back to back loan of `8,074.15
crore.
(Chapter II)

2.3 Budgetary Management

Although, the percentage of utilization of Budgeted funds (87.37 per cent) increased during
2021-22 compared to the previous year (81.22 per cent), the budgetary assumptions of the
State Government were not realistic during 2021-22 and control over the execution and
monitoring of budget was inadequate.
There was an excess expenditure of ₹4,059.76 crore over the authorisations made by the State
Legislature under two Grants (Finance Department and Religious Trusts & Endowments
Department) and three Appropriations (Finance Department, Women and Child Welfare
Department and Public Debt) during the financial year 2021-22 which needs to be regularised
as per Article 205(1)(b) of Constitution of India. Further, a total of `13,376.63 crore is pending
for regularisation from 2000-01 to 2020-21.
Supplementary Grants/ Appropriations were obtained without adequate justification. The
savings were neither surrendered on time nor explanations provided to the Principal
Accountant General (A&E) for variations in expenditure vis-à-vis allocations. The
Departments were neither cautioned against persistent savings; nor were their budgets varied
in accordance with their ability to absorb the allocations.
(Chapter III)

2.4 Quality of Accounts and Financial Reporting Practices

Non-submission of DCC bills by Departments for funds drawn for specific developmental
programmes/ projects and non-submission of accounts by public sector entities were violative
of prescribed financial rules and directives. This points to inadequate internal controls and

Page x
 Executive Summary

deficient monitoring mechanism of the State Government and increases the risk/possibility of
wastage/misappropriation/malfeasance etc.
As of 31 March 2022, 139 PD Accounts were in existence with a closing balance of ₹1,404.38
crore. Out of the closing balance of ₹1,404.38 crore under PD Accounts, ₹1,148.87 crore were
on account of non-disbursement of amount relating to land acquisition. Non-transfer of unspent
balances lying in PD Accounts to the Consolidated Fund of the State entails the risk of misuse
of public fund, fraud and misappropriation.
Operation of omnibus Minor Head 800 – ‘Other Receipts’ (`7,427.94 crore constituting 9.33
per cent of total revenue receipts) and ‘Other Expenditure’ (`1,137.59 crore constituting 1.33
per cent of total revenue and capital expenditure of ₹ 85,514.23 crore) affected transparency
in financial reporting and obscured proper analysis of allocative priorities and quality of
expenditure.
Non-reconciliation of receipts and expenditure booked by the Controlling Officers of the State
with the figures of the Principal Accountant General (A&E) reflects poorly on the internal
control system within the Government and raises concerns relating to accuracy of accounts.
Against the allocated amount of ₹409.70 crore during the financial year 2021-22, the Building
and other Construction Workers’ Welfare Board could utilize only ₹92.24 crore leaving a
balance of ₹317.46 crore unutilized which resulted in depriving of the benefits of various
schemes to the registered workers. Further, only 18 per cent of registered workers were
benefited under various schemes during the financial year 2021-22.
The State Government has a net off-budget liabilities of ₹3,872.80 crore in addition to total
budgeted liabilities of ₹99,172.89 crore outstanding as of March 2022. Government of
Chhattisgarh has not disclosed in its budget, its liabilities with regard to the loans obtained
by various public sector entities at its behest for implementation of various socio-economic
developmental programmes for which the State Government had given the guarantee to repay
the principal and interest.
(Chapter IV)
2.5 Financial Performance of State Public Sector Undertakings
As on 31 March 2022, there were 30 PSUs including one Statutory Corporation. Out of 30,
there are two inactive PSUs. Out of 28 working PSUs, only 25 PSUs (24 Companies and one
Statutory Corporation), whose accounts were in arrears for two or less years as on 30
September 2022 have been considered for detailed analysis of financial performances.

As per their latest accounts and information furnished, the PSUs registered an annual turnover
of `42,147.03 crore, which was equal to 10.53 per cent of the GSDP of Chhattisgarh. As on 31
March 2022, the investment of the Central and State Governments and Others in equity and
long-term loans in these 30 PSUs was `20,391.67 crore.

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State Finances Audit Report for the Year ended 31 March 2022

Out of 25 PSUs (covered in this Report) 11 PSUs earned profit of `932.01 crore in 2021-22,
11 PSUs incurred losses of `439.99 crore and three PSUs had reported neither profit nor loss.
Major profit contributed by Chhattisgarh State Power Generation Company Limited (`570.38
crore) and Chhattisgarh State Power Transmission Company Limited (`153.90 crore) and
major loss was incurred by Chhattisgarh state Power Distribution company Limited (`419.77
crore). Only two PSUs Chhattisgarh Rajya Van Vikas Nigam Limited and Chhattisgarh State
Warehousing Corporation declared dividend of `3.03 crore and `0.81 crore respectively.
Total accumulated losses reported by 30 PSUs were `4,163.97crore, resulting in depletion in
net worth to `2,900.11 crore as on 31 March 2022. One PSU i.e. Chhattisgarh State Power
Distribution Company Limited (CSPDCL) which incurred losses amounting to `419.77 crore
during the year 2021-22, reported total accumulated loss of `7,710.10 crore as on 31 March
2022.
Financial Statements of only six PSUs for the year 2021-22 were received in time. Twenty four
PSUs have defaulted in timely submission of accounts hence forty accounts pertaining to these
PSUs were in arrears.
As a result of the audit of CAG, significant comments highlighting inaccuracies in the Financial
Statements impacting profitability and assets/liabilities were issued.
Irregularities and deficiencies in the financial reports observed during supplementary audit
which are not material, were communicated to the Management of three PSUs through
‘Management Letters’ for taking corrective action.
(Chapter V)

Page xii
CHAPTER I
OVERVIEW
 Chapter I: Overview

1.1 Profile of the State

Chhattisgarh is located in the central part of India and is spread over an area of 1,35,192
sq. km (4.11 per cent of geographical area of India). The State was created in November
2000 by bifurcating the composite State of Madhya Pradesh. It has 28 districts and is
home to 2.55 crore population as per Census 2011. The State’s population increased
from 2.08 crore in 2001 to 2.55 crore in 2011, recording a decadal growth of 22.61 per
cent. At current prices, the per capita income of the State was estimated at `1,18,401
during 2021-22, which was lower than the national average of `1,50,007. General and
financial data relating to the State is given in Appendix 1.1.
1.1.1 Gross State Domestic Product of the State
Gross State Domestic Product (GSDP) is the value of all the goods and services
produced within the boundaries of the State in a given period of time. Growth of GSDP
is an important indicator of the State’s economy, as it denotes the extent of changes in
the level of economic development of the State over a period of time.
Trends in annual growth of Chhattisgarh’s GSDP (current prices) vis-à-vis GDP of the
country are given in Table 1.1.
Table 1.1: Trends in GSDP compared to the GDP
Sl. No. Year 2017-18 2018-19 2019-20 2020-21 2021-22
GDP at current prices
1 1,70,90,042 1,88,99,668 2,00,74,856 1,98,00,914 2,36,64,637
(` in crore)
Growth Rate of GDP
2 over previous year 11.03 10.58 6.21 -1.36 19.51
( in per cent)
GSDP at current
3 2,82,266 3,27,693 3,44,571P 3,52,161Q 4,00,061A
prices (` in crore)
Growth Rate of
4 GSDP over previous 7.41 16.09 5.15 2.20 13.60
year (in per cent)
Source: GoI’s Economic Survey (2021-22) and Directorate of Economics and Statistics,
Chhattisgarh. A- Advanced Estimates; Q - Quick Estimates; P - Provisional Estimates
As can be seen from the table above, the growth rate of GSDP of Chhattisgarh oscillated
between 2.20 and 16.09 per cent during the five-year period 2017-18 to 2021-22. Even
though the GSDP of Chhattisgarh grew at a lower rate during 2021-22 compared to the
GDP of India, it registered a higher growth rate compared to the previous year mainly
due to increase in growth rate of all three Sectors that make up the GSDP - Agriculture,
Industry and Services sectors, from 7.48 per cent, (-) 0.16 per cent and 2.91 per cent in
2020-21 to 8.93 per cent, 17.27 per cent and 11.29 per cent in 2021-22 respectively.
Economic activities are generally divided into Primary, Secondary and Tertiary sectors,
which correspond to Agriculture, Industry, and Services Sectors. Change in sectoral
contribution of the GSDP is also important to understand the changing structure of

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State Finances Audit Report for the year ended 31 March 2022

economy. Chart 1.1 below shows the sectoral composition of GSDP of Chhattisgarh
vis-à-vis GDP of India during 2021-22. Agriculture includes Agriculture, Forestry and
Fishing. Industry includes Mining & Quarrying, Manufacturing, Construction etc.
Chart 1.1: Sectoral composition of GSDP of Chhattisgarh vis-à-vis GDP of
India during 2021-22

50 47.51
39.86
40
32.97
30 25.89
20.33
20 16.82

10

0
Agriculture Industry Services

GDP GSDP
Source: GoI’s Economic Survey (2021-22) and Directorate of Economics and Statistics,
Chhattisgarh.
Note: Sectoral composition of GDP & GSDP is worked out after excluding the figure of Taxes &
subsidies on Products. Percentage of Taxes & Subsidies w.r.t. GDP is 9.78% & GSDP is 6.84%.
As can be seen from Chart 1.1, during 2021-22 the major contributing factor to GSDP
of Chhattisgarh was Industry sector, while for the GDP of India, it was Services sector.
Percentage wise, contribution of Industry and Agriculture sectors in GSDP of
Chhattisgarh was higher than that of national GDP, whereas Services sector contributed
less to GSDP of the State compared to its share in GDP of India.
Chart 1.2 reveals that during the five-year period 2017-18 to 2021-22, there has been
an increase in the relative share of agriculture sector in GSDP of the State from 18.41
per cent in 2017-18 to 20.33 per cent in 2021-22. During the same period, there has
been a decrease in the share of industry and service sectors from 40.39 and 33.05 per
cent in 2017-18 to 39.86 and 32.97 per cent in 2021-22 respectively.
Chart 1.2: Change in sectoral contribution to GSDP (2017-18 to 2021-22)
50
40.39 39.86
40 33.05 32.97
30
18.41 20.33
20

10

0
Agriculture Industry Services
2017-18 2021-22
Source: Economic Survey (2021-22), Directorate of Economics and Statistics, Chhattisgarh

Note: Sectoral composition of GSDP is worked out after excluding figure of Taxes & Subsidies on
Products. Percentage of Taxes & Subsidies w.r.t. GSDP in 2017-18 is 8.15% and in 2021-22 is 6.84%.
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 Chapter I - Overview

The year-on-year change in contribution of various sectors to the GSDP of the State is
given below in Chart 1.3:
Chart 1.3: Sectoral growth in GSDP
25.00
22.11

20.00 18.22
17.27
15.00 14.17 11.34
10.89
11.29
10.00 7.48
6.74 9.43 8.93
5.00
2.91
0.00 -0.16
1.06
-5.00 -4.27
2017-18 2018-19 2019-20 2020-21 2021-22

Agriculture Industry Services

Source: Economic Survey (2021-22), Directorate of Economics and Statistics, Chhattisgarh

1.2 Basis and Approach to State Finances Audit Report

In terms of Article 151 (2) of the Constitution of India, the reports of the Comptroller
and Auditor General of India (CAG) relating to the accounts of a State are to be
submitted to the Governor of the State, who shall cause them to be laid before the
Legislature of the State. The State Finances Audit Report (SFAR) of Chhattisgarh for
the year ending 31 March 2022 has been prepared by the CAG for submission to the
Governor of Chhattisgarh under Article 151 (2) of the Constitution of India.
Accountant General (Accounts & Entitlements) prepares the Finance Accounts and
Appropriation Accounts of the State annually, from the vouchers, challans and initial
and subsidiary accounts received from the treasuries, offices and departments
responsible for keeping of such accounts functioning under the control of the State
Government, and the statements received from the Reserve Bank of India. These
accounts are audited independently by the Accountant General (Audit), and certified by
the CAG.
Finance Accounts and Appropriation Accounts of the State for the year 2021-22
constitute the core data for this report. Other sources include the following:
• Budget of the State for the year 2021-22 forms an important source of data –
both for assessing the fiscal parameters and allocative priorities vis-à-vis
projections, and for evaluating the effectiveness of its implementation and
compliance with the relevant rules and prescribed procedures;
• Results of audit carried out by the Office of the Principal Accountant General
(Audit), Chhattisgarh;
• Other data with Departmental Authorities and Treasuries (accounting as well as
MIS);

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State Finances Audit Report for the year ended 31 March 2022

• GSDP related statistics from the Directorate of Economic and Statistical

Department of Chhattisgarh; and
• Various audit reports of the CAG of India during 2017-22.
The analysis has been carried out in the context of recommendations of the Fifteenth
Finance Commission (XVFC), Chhattisgarh Fiscal Responsibility and Budget
Management (CGFRBM) Act, Budget documents of the State and guidelines of the
Government of India.

1.3 Report Structure

The SFAR is structured into the following five Chapters:
Overview
Chapter - I This Chapter describes the basis and approach to the Report and the
underlying data, provides an overview of structure of government
accounts, budgetary processes, macro-fiscal analysis of key indices,
and State’s fiscal position including the deficits/ surplus.
Finances of the State
This chapter provides a broad perspective of the finances of the
Chapter - II State, the critical changes in major fiscal aggregates relative to the
previous year, overall trends during the period from 2017-18 to
2021-22, debt profile of the State, and key Public Account
transactions, based on the Finance Accounts of the State.
Budgetary Management
Chapter -III This chapter is based on the Appropriation Accounts of the State,
reviews the appropriations and allocative priorities of the State
Government, and reports on deviations from Constitutional
provisions relating to budgetary management
Quality of Accounts & Financial Reporting Practices
Chapter -IV This chapter comments on the quality of accounts rendered by
various authorities of the State Government, and on issues of non-
compliance with prescribed financial rules and regulations by
various departmental officials of the State Government.
Financial Performance of State Public Sector Undertakings
This Chapter presents the summary of financial performance of
Chapter -V
State Public Sector Enterprises (Government Companies and
Statutory Corporations) of Chhattisgarh.

1.4 Overview of Government Accounts Structure

The Accounts of the Government are kept in three Parts:
1. Consolidated Fund of the State [Article 266(1) of the Constitution of India]
This Fund comprises all revenues received by the State Government, all loans raised by
the State Government (market loans, bonds, loans from the Central Government, loans
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 Chapter I - Overview

from Financial Institutions, Special Securities issued to National Small Savings Fund,
etc.), Ways and Means advances extended by the Reserve Bank of India and all moneys
received by the State Government in repayment of loans. No moneys can be
appropriated from this Fund except in accordance with law and for the purposes and in
the manner provided by the Constitution of India. Certain categories of expenditure
(e.g., salaries of Constitutional authorities, loan repayments etc.), constitute a charge
on the Consolidated Fund of the State (Charged expenditure) and are not subject to vote
by the Legislature. All other expenditure (Voted expenditure) is voted by the
Legislature.
2. Contingency Fund of the State [Article 267(2) of the Constitution of India]
This Fund is in the nature of an imprest which is established by the State Legislature
by law, and is placed at the disposal of the Governor to enable advances to be made for
meeting unforeseen expenditure pending authorisation of such expenditure by the State
Legislature. The fund is recouped by debiting the expenditure to the concerned
functional major head relating to the Consolidated Fund of the State.
3. Public Accounts of the State [Article 266(2) of the Constitution of India]
Apart from above, all other public moneys received by or on behalf of the Government,
where the Government acts as a banker or trustee, are credited to the Public Account.
The Public Account includes repayables like Small Savings and Provident Funds,
Deposits (bearing interest and not bearing interest), Advances, Reserve Funds (bearing
interest and not bearing interest), Remittances and Suspense heads (both of which are
transitory heads, pending final booking). The net cash balance available with the
Government is also included under the Public Account. The Public Account is not
subject to the vote of the Legislature.
There is a constitutional requirement in India (Article 202) to present before the House
or Houses of the Legislature of the State, a statement of estimated receipts and
expenditures of the government in respect of every financial year. This ‘Annual
Financial Statement’ constitutes the main budget document. Further, the budget must
distinguish expenditure on the revenue account from other expenditures.
Revenue Account receipts consists of tax revenue (own tax revenue plus share of
union taxes/duties), non-tax revenue, and grants from Government of India.
Revenue Account expenditure consists of all those expenditures of the government
which do not result in creation of physical or financial assets. It relates to those expenses
incurred for the normal functioning of the government departments and various
services, interest payments on debt incurred by the government, and grants given to
various institutions (even though some of the grants may be meant for creation of
assets).
Capital Account receipts consist of:
Debt receipts: Market Loans, Bonds, Loans from financial institutions, Net transaction
under Ways and Means Advances, Loans and Advances from Central Government, etc.;

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State Finances Audit Report for the year ended 31 March 2022

Non-debt receipts: Proceeds from disinvestment, Recoveries of loans and advances;

Capital Account disbursement includes capital expenditure on the acquisition of land,
building, machinery, equipment, investment in shares, and repayment of Public Debt
and loans and advances by the government to PSUs and other parties.
The Government accounting classification system is both functional and economic.
Attributes of transactions Classification
Standardised in List of Function - Education, Health, etc./
Major Head under Grants (4-digit)
Major and Minor Heads Department
of Account by Sub-Function Sub Major Head (2-digit)
Controller General of
Accounts Programme Minor Head (3-digit)
Scheme Sub-Head (2-digit)
Flexibility left for States Sub scheme Detailed Head (2-digit)
Object Head-salary, minor works,
Economic nature/Activity
etc. (2-digit)
Functional classification involves arranging the receipts and expenditure by economic
categories, distinguishing the Government transactions into Sections like Revenue and
Capital (including Public Debt, Loans and Advances), Sectors like Tax Revenue from
other revenue and Grants-in-Aid, Sub-sectors like Taxes on Income and Expenditure,
fiscal services, etc. On the expenditure side also, the transactions are classified into
Sectors viz., General Services, Economic Services, Social Services and Grants-in-Aid
and contributions and sub-divided into Major Heads of account below these Sectors.
Major Heads of account falling within the Consolidated Fund generally correspond to
'Functions' of Government, such as ‘Education’, while Minor Heads subordinate to
them identify the 'Programme' undertaken to achieve the objectives of the function
represented by the Major Head. A programme may consist of a number of schemes or
activities and these generally, correspond to 'Sub-heads' below the Minor head.
‘Detailed head’ below the Sub-head, is primarily meant for itemised control over
expenditure and indicates the object or nature of expenditure on a scheme or activity in
terms of inputs such as 'Salaries', 'Office Expenses', 'Grants-in-Aid', etc.
A pictorial depiction of the structure of Government Accounts is given in Chart 1.4.

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 Chapter I - Overview

Chart 1.4: Pictorial depiction of the structure of Government Accounts

Tax Revenue
Revenue Non-Tax Revenue
Receipts
Revenue Grants-in-Aid & Contributions
Section
General Services
Revenue
Expenditure Social Services
Consolidate Economic Services
d Fund
Grants-in-Aid & Contributions
Government Accounts

Capital
Receipts Non-debt capital
receipts
Capital
Contingency Section General Services
Capital
Fund Expenditure Social Services
Small Economic Services
Savings, PF
etc.
Reserve Internal & External Debt
Public Debt, raised and repayment
Funds Loans &
Public
Account Deposits & Advances
Advances Loans and Advances by the
Govt. and their recoveries
Suspense & Inter-State
Miscellaneous Settlement
Remittances Transfer to Contingency
Fund
Cash Balance

Source: Finance Accounts

1.5 Budgetary Processes

In terms of Article 202 of the Constitution of India, the Governor of Chhattisgarh
caused to be laid before the State Legislature, a statement of the estimated receipts and
expenditure of the State for the year 2021-22, in the form of an Annual Financial
Statement. In terms of Article 203, the above was submitted to the State Legislature in
the form of 71 Demands for Grants/ Appropriations and after approval of these, the
Appropriation Bill was passed by the Legislature under Article 204 to provide for
appropriation of the required money out of the Consolidated Fund. Finance Accounts
and Appropriation Accounts encompass the core data for preparation of the SFAR.
These Accounts are based on actual receipts and expenditure of the State during the
year 2021-22 including various inter-governmental and other adjustments carried out
by the Reserve Bank of India (RBI).
The Madhya Pradesh Budget Manual (as adopted by the Government of Chhattisgarh)
details the formulation process and guides the State Government in preparing its
budgetary estimates and monitoring its expenditure activities.
1.5.1 Snapshot of Finances
The following table provides the details of actual financial results vis-a-vis Budget
Estimates for the year 2021-22, and actuals of 2020-21.

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 State Finances Audit Report for the year ended 31 March 2022

Table 1.2: Snapshot of Finances

(` in crore)
2020-21 2021-22 2021-22 Percenta- Percent-
Sl. ge of age of
Components (Budget
No (Actuals) (Actuals) Actual to Actuals
Estimate) B.E. to GSDP
1 Tax Revenue 43,226.74 48,425.42 55,654.52 114.92 13.91
(i) Own Tax revenue 22,889.20 25,750.00 27,083.73 105.18 6.77
Share of Union Taxes and
(ii) 20,337.54 22,675.42 28,570.79 126.00 7.14
duties
2 Non-Tax Revenue 7,136.95 9,250.00 13,851.21 149.74 3.46
Grants-in-aid and
3 12,812.49 21,650.00 10,146.30 46.87 2.54
contributions
4 Revenue Receipts (1+2+3) 63,176.18 79,325.42 79,652.03 100.41 19.91
Recovery of Loans and
5 Advances including Inter State 104.13 320 88.02 27.51 0.02
Settlement
6 Misc. Capital Receipts 4.85 0 4.89 0 0
7 Public Debt Receipts 21,581.68 18,776.38 15,098.28 80.41 3.77
8 Capital Receipts (5+6+7) 21,690.66 19,096.38 15,191.19 79.55 3.80
9 Total Receipts (4+8) 84,866.84 98,421.80 94,843.22 96.36 23.71
10 Revenue Expenditure 70,032.84 83,027.55 75,010.01 90.34 18.75
11 Interest Payments 5,633.11 6,470.83 6,144.24 94.95 1.54
12 Capital Expenditure 9,024.19 13,839.35 10,504.22 75.90 2.63
Loans & Advances including
13 50.51 239.55 323.81 135.17 0.08
Inter-state Settlement
14 Total Exp. (10+12+13) 79,107.54 97,106.45 85,838.04 88.40 21.46
Revenue Surplus (+)/
15 (-)6,856.66 (-)3,702.13 4,642.02 (-)125.39 1.16
Deficit (-) (4-10)
16 Fiscal Deficit {(4+5+6)-14} (-)15,822.38 (-)17,461.03 (-)6,093.10 34.90 (-)1.52
17 Primary Deficit (16+11) (-)10,189.27 (-)10,990.20 51.14 (-)0.47 0.01
Source: Finance Accounts of respective years and Budget Book 2021-22.
Though the State Government has projected revenue deficit in budget, it achieved
revenue surplus due to mobilization of higher tax and non tax revenue receipts vis-a-
vis budget. Fiscal deficit remained less than that estimated due to less revenue and
capital expenditure than projected in the budget.
1.5.2 Snapshot of Assets and liabilities of the Government
Government accounts capture the financial liabilities of the Government and the assets
created out of the expenditure incurred. The liabilities consist mainly of internal
borrowings, loans and advances from GoI, receipts from public accounts, and the assets
comprise mainly the capital outlay and loans and advances given by the State
Government and cash balances.

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 Chapter I - Overview

Table 1.3: Summarised position of Assets and Liabilities

(` in crore)
Liabilities Assets
Sl. Percentage Percentage
No. Particulars 2020-21 2021-22 Increase(+)/ Particulars 2020-21 2021-22 Increase(+)/
Decrease(-) Decrease(-)
Gross Capital
1 Internal Debt 70,538.81 71,186.62 (+)0.91 1,01,913.17 1,12,412.50 (+)10.30
Outlay
Loans and
Loans and
2 Advances 6,169.301 11,726.152 (+)90.07 1,342.78 1,409.86 (+)5.00
Advances
from GoI
Contingency
Contingency
3 100.00 100.00 (+)0.00 fund (un- 0.00 0.00 (+)0.00
Fund (corpus)
recouped)
Small
Savings,
4 8,021.40 8,020.50 (-)0.01 Advances 1.83 7.34 (+)301.09
Provident
Funds, etc.,
5 Deposits 5,985.11 5,786.49 (-)3.32 Remittance 329.28 336.22 (+)2.08
Reserve Suspense and
6 9,180.67 9,627.40 (+)4.87 0.00 0.00 (+)0.00
Funds Miscellaneous
Suspense and
7 77.19 142.70 (+)84.87 Cash Balance3 9,461.37 9,921.62 (+)4.86
Miscellaneous
Total (1 to 7) 1,13,048.43 1,24,087.54 (+)9.76
8 Remittances 0.00 0.00 (+)0.00 Deficit on
Government 12,975.95 17,497.68 (+)34.85
Account
Total (1 to 8) 1,00,072.48 1,06,589.86 (+)6.56 Total (8-9) 1,00,072.48 1,06,589.86 (+)6.51
Source: Finance Accounts of respective years

1.6 Fiscal Balance: Achievement of deficit and total debt targets

Deficit is an indicator of prudent fiscal management of the Government. Further, the

ways in which the deficit is financed and the resources raised are applied, are important
pointers to its fiscal health. This section presents trends, nature and magnitude of
deficits and the manner of financing these deficits, and also the assessment of actual
levels of revenue and fiscal deficits vis-à-vis targets set under CGFRBM
Act/Rules/fiscal policy statements for the financial year 2021-22.
1.6.1 Compliance with provisions of State FRBM Act
In compliance with the recommendations of Twelfth Finance Commission (TFC), the
State Government enacted the Chhattisgarh Fiscal Responsibility and Budget
Management Act, 2005 (CGFRBM Act) (amended in September 2011 and 2016) to
ensure prudence in fiscal management and fiscal stability by progressive elimination of
revenue deficit, reduction in fiscal deficit, prudent debt management consistent with
fiscal sustainability and greater transparency in fiscal operations of the Government,
and conduct of fiscal policy in a Medium Term Fiscal Framework (MTFF).
As per the CGFRBM Act 2005, the State Government was to eliminate revenue deficit

1
Includes back to back loan of `3,109 crore in lieu of GST compensation shortfall.
2
Includes back to back loan of `8,074.15 crore in lieu of GST compensation shortfall. The debt servicing
of this loan would be done from the collection of cess in the GST compensation Fund.
3
Including investment in earmarked fund.
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 State Finances Audit Report for the year ended 31 March 2022

and bring fiscal deficit down to 3 per cent of the GSDP by the end of 31 March 2009.
During 2021-22, target for fiscal deficit was set to 4 per cent of the GSDP as per the
Medium term Fiscal Policy Statement presented along with Budget 2021-22.
Major fiscal variables, as set in CGFRBM Act/ disclosures made under the Act in fiscal
policy statements, and their achievement during 2017-22 are given in Table 1.4.
Table 1.4: Major fiscal variables for 2017-224
Sl. Fiscal Fiscal Targets set Achievement (` in crore)
No. Parameters in the Act/MTFPS 2017-18 2018-19 2019-20 2020-21 2021-22
Revenue Deficit 3,417.32 683.76 (-)9,608.61 (-)6,856.66 4,642.02
1 Revenue Surplus
(-)/ Surplus (+) Yes Yes No No Yes
3.50 per cent of GSDP (-) (-) (-) (-) (-)
Fiscal Deficit(-)/
for 2017-19 and 5 per 6,810.32 8,292.23 17,969.55 15,822.38 6,093.10
Surplus (+) (as
2 cent of GSDP for (2.41%) (2.53%) (5.22%) (4.49%) (1.52%)
percentage of
2019-21 & 4 per cent
GSDP) Yes Yes No Yes Yes
of GSDP for 2021-22
18.47% for 2017-18
Total
18.06% for 2018-19 18.74% 20.37% 22.84% 25.44%5 22.77%6
outstanding debt
3 21.23% for 2019-20
as percentage of
21.59% for 2020-21
GSDP No No No No Yes
28.34% for 2021-22
Source: Finance Accounts of the respective years
The State was able to achieve the target of revenue surplus during 2021-22. During
2021-22, Revenue Surplus of the State was `4,642.02 crore as compared to Revenue
Deficit of `6,856.66 crore in 2020-21. The decrease in Revenue Deficit was mainly due
to increase in Revenue Receipts by `16,475.85 crore (26.07 per cent) as compared to
2020-21 despite increase in Revenue Expenditure by `4,977.17 crore (7.10 per cent).
The receipts under GIA from the Government of India decreased by 20.80 per cent over
the previous year.
Fiscal Deficit of the State decreased during 2021-22 (`6,093.10 crore) by `9,729.28
crore from `15,822.38 crore in 2020-21, as the Revenue Deficit of `6,856.66 crore in
2020-21 turned into Revenue Surplus of `4,642.02 crore in 2021-22. The ratio of Fiscal
Deficit to GSDP was within the target prescribed under FRBM/MTFPS during the years
2017-18 to 2021-22, except in 2019-20. Fiscal Deficit at 5.22 per cent of the GSDP
exceeded the target prescribed in the FRBM Act during 2019-20.
The GST compensation is the revenue of the State Government under GST
(Compensation to States) Act, 2017. However, in addition to receiving the GST
compensation amounting to ₹1,216.86 crore as revenue receipts, due to inadequate
balance in GST compensation fund during the year 2021-22, Chhattisgarh also received
back to back loan of `4,965.15 crore. The debt servicing of this loan would be done

4
The percentages w.r.t GSDP indicated in earlier reports have been revised due revised figures of GSDP.
5
Debt to GSDP percentage has been calculated on the total debt of `89,605.22 crore after excluding the
amount of back to back loan of `3,109 crore in lieu of GST compensation shortfall.
6
Debt to GSDP percentage has been calculated on the total debt of `91,098.74 crore after excluding the
amount of back to back loan of `8,074.15 crore in lieu of GST compensation shortfall.
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 Chapter I - Overview

from the collection of cess in GST compensation fund and hence, repayment obligation
will not be met from the other resources of the State. The revenue surplus of `4,642.02
crore and fiscal deficit of `6,093.10 crore of the State Government as depicted in the
Finance Accounts 2021-22 should, therefore, be read in conjunction with debt receipt
of `4,965.15 crore in lieu of GST compensation. Thus revenue surplus and fiscal deficit
would work out as `9,607.17 crore and `1,127.95 crore respectively during the year
2021-22, keeping in view the debt receipt of `4,965.15 crore in lieu of GST
compensation.
The percentage of total outstanding debt to GSDP during 2021-22 was (22.77 per cent)
within the target prescribed in the MTFPS (28.34 per cent) by the State Government
and the target recommended by the XV Finance Commission (28 per cent). The
percentage of debt to GSDP has been calculated after excluding back to back loan of
`8,074.15 crore (`4965.15 crore in 2021-22 and `3109 crore in 2020-21) received by
the State Government in lieu of shortfall in GST compensation, from the amount of
total outstanding debt.
Under section 5(3) of the Chhattisgarh State FRBM Act, 2005, whenever the State
Government undertakes to unconditionally and substantially repay the principal amount
and/or pay the interest of any separate legal entity, it has to reflect such liability as
borrowing of the state in such form as may be prescribed. The Chhattisgarh FRBM
Rules prescribes that the State Government shall at the time of presenting the annual
financial statement and demand for grant make disclosures as required under section 5
of the CGFRBM Act. However, the State Government did not disclose such off-budget
borrowings (₹4,383.37 crore) in the required Form D-2 “Total outstanding liabilities of
the State Government” alongwith the budget document during the year 2017-18 to
2021-22.
1.6.2 Disclosures made under CGFRBM Act during 2021-22
As per the CGFRBM Act, the State Government shall in each financial year lay before
the State Legislature, fiscal policy statements such as Macroeconomic Framework
Statement (MFS), Medium Term Fiscal Policy Statement (MTFPS) and Fiscal Policy
Strategy Statement alongwith the annual financial statement:
The statements shall contain an overview of the State economy, an analysis of growth
and sectoral composition of GSDP, an assessment related to the State Government
finances and future prospects, three year rolling targets for the prescribed fiscal
indicators etc.,
Table 1.5 indicates the variation between the estimates made for 2021-22 in
MFS/MTFPS presented to the State Legislature and actuals of the year.

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State Finances Audit Report for the year ended 31 March 2022

Table 1.5: Actuals vis-à-vis estimates in MFS/MTFPS under FRBM Act

for 2021-22
(` in crore)
Projection as per Per cent
Sl. Actuals
Fiscal Variables disclosures under Increase(+)/
No (` in crore)
FRBM act Decrease(-)
1 Own Tax Revenue 25,750.00 27,083.73 5.18
2 Non-Tax Revenue 9,250.00 13,851.21 49.74
3 Share of Central Taxes 22,675.42 28,570.79 26.00
4 Grants-in aid from GoI 21,650.00 10,146.30 (-)53.13
5 Revenue Receipts (1+2+3+4) 79,325.42 79,652.03 0.41
6 Revenue Expenditure 83,027.55 75,010.01 (-)9.66
Revenue Deficit (-)/Surplus (+)
7 (-)3,702.13 4,642.02 225.38
(5-6)
8 Fiscal Deficit (-)/Surplus (+) (-)17,461.03 (-)6,093.10 (-)65.10
9 Debt-GSDP ratio (per cent) 28.34 22.777 (-)19.65
GSDP growth rate at current
10 9.37 13.60 45.14
prices (per cent)
Source: Finance Accounts and FRBM disclosures 2021-22.

It is evident from above table that the projections made in the MFS/MTFPS were met
during 2021-22 except for Grant-in aid from GoI and Revenue Expenditure.
1.6.3 Deficit and Surplus
When a Government spends more than it collects by way of revenue, it incurs a deficit.
There are various measures that capture Government deficit.

Revenue Refers to the difference between revenue expenditure and revenue receipts.
Deficit/ • When the government incurs a revenue deficit, it implies that the Government is
Surplus dissaving and is using up the savings of the other sectors of the economy to
finance a part of its consumption expenditure.
(Revenue
Expenditure – • Existence of revenue deficit is a cause of concern as revenue receipts were not
Revenue able to meet even revenue expenditure. Moreover, part of capital receipts was
Receipts) utilized to meet revenue expenditure, reducing availability of capital resources
to that extent for creation of capital assets.
• This situation means that the Government will have to borrow not only to finance
its investment but also for its consumption requirements. This leads to a build-
up of stock of debt and interest liabilities and forces the government, eventually,
to cut expenditure.
• If major part of revenue expenditure is committed expenditure (interest
liabilities, salaries, pensions), the government reduces productive expenditure or
welfare expenditure. This would mean lower growth and adverse welfare
implications.
It is the difference between the Revenue Receipts plus Non-debt Capital Receipts
Fiscal Deficit/
(NDCR) and the total expenditure. Fiscal Deficit is reflective of the total borrowing
Surplus
requirements of Government.

7
Debt/GSDP ratio calculated on outstanding debt excluding the amount of back-to-back loan of
`8,074.15 crore.
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 Chapter I - Overview

(Total • Fiscal deficit is the difference between the government’s total expenditure and
expenditure – its total receipts excluding borrowings.
(Revenue • Non-debt capital receipts are those receipts, which are not borrowings, and,
receipts +
Non-debt therefore, do not give rise to debt. Examples are recovery of loans and the
creating proceeds from the sale
capital of PSUs.
receipts) • The fiscal deficit will have to be financed through borrowing. Thus, it indicates
the total borrowing requirements of the government from all sources.
Governments usually run fiscal deficits and borrow funds for capital/ assets
formation or for creation of economic and social infrastructure, so that assets created
through borrowings could pay for themselves by generating an income stream. Thus
it is desirable to fully utilize borrowed funds for the creation of capital assets and to
use revenue receipts for the repayment of principal and interest.

1.6.4 Trends of Deficit/Surplus

The State had a fiscal deficit of `6,093.10 crore during the year 2021-22, representing
1.52 per cent of the GSDP (`4,00,060.80 crore) and constituting 7.09 per cent of Total
Expenditure (`85,838.04 crore). The Primary Deficit of `10,189.27 crore during 2020-
21 turned into Primary Surplus of `51.14 crore during the current year. The Revenue
Deficit of of `6,856.66 crore during 2020-21 turned into Revenue Surplus of `4,642.02
crore. The trend of surplus and deficit over the five-year period 2017-18 to 2021-22 is
depicted in Chart 1.5 and trend in surplus or deficit relative to GSDP is given in Chart
1.6.
Chart 1.5: Trends in Surplus/Deficit
(` in crore)

10,000
4,642.02
5,000 3,417.32
683.76
51.14
0
-3,711.99 -4,639.69
-5,000 -6,856.66
-9,608.61
-6,810.32 -6,093.10
-10,000 -8,292.23
-10,189.27

-15,000 -12,999.19
-15,822.38
-17,969.55
-20,000
2017-18 2018-19 2019-20 2020-21 2021-22

Revenue Deficit (-)/ Surplus (+) Fiscal Deficit (-)/ Surplus (+)
Primary Deficit (-)/ Surplus (+)

Source: Finance Accounts of the respective years

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State Finances Audit Report for the year ended 31 March 2022

Chart 1.6: Trends in Surplus/Deficit relative to GSDP

(in per cent)
2.00 1.21 1.16
1.00 0.21 0.01
0.00
-1.00
-2.00 -1.32 -1.42 -1.52
-2.41 -1.95
-3.00 -2.53 -2.79 -2.89
-4.00
-3.77
-5.00 -4.49
-5.22
-6.00
2017-18 2018-19 2019-20 2020-21 2021-22

Revenue Deficit (-)/ Surplus (+) Fiscal Deficit (-)/ Surplus (+) Primary Deficit (-)/ Surplus (+)

Source: Finance Accounts of the respective years

1.7 State Finance Commission

As per article 243(I) and 243(Y) of Constitution of India the State Finance
Commission(SFC), to be appointed after every five years, to recommend devolution of
funds from the State Government to Local Bodies, and also suggest measures for
augmenting their Own Resources.
The Government of Chhattisgarh has constituted four State Finance Commissions since
the formation of state in 2000. Details of State Finance Commissions have been
presented in Table 1.6 below:
Table 1.6: Constitution of State Finance Commission
Sl. State To be Actually Date of Acceptance Period
No. Finance constituted Constituted Submission of by the Covered
Commission as per recommendation Government
constitution
1 First 2001-02 22.08.2003 30.05.2007 July 2009 2007-12
2 Second 2006-07 23.07.2011 31.03.2013 July 2013 2012-20
3 Third 2011-12 20.01.2016 30.09.2018 October 2019 2020-25
4 Fourth 2016-17 29.07.2021 - - 2025-30
Source: Finance Commission reports and notification of acceptance

First State Finance Commission of Chhattisgarh was constituted on 22 August 2003. It

was reconstituted on 14 July 2004 and the Commission submitted its report in May
2007. In the meantime the recommendation of first and second State Finance
Commission (SFC) of Madhya Pradesh for the relevant years were applicable to the
newly created state. The first SFC has made a total of 81 recommendations out of which
the State Government accepted 36 while 5 others are accepted with modification.
Second State Finance Commission of Chhattisgarh was constituted on 23 July 2011 to
give recommendations for the period of 2011-16. However, the State Government had
extended the award period of First SFC up to March 2012 and changed the award period
of Second SFC from the year 2012 to 2017. However, recommendation of Second SFC
were also made applicable for the period of 2017-20. The Second SFC has made a total
Page 14
 Chapter I - Overview

of 133 recommendations out of which the State Government accepted 103.

Third State Finance Commission was constituted on 20 January 2016 and the
recommendation of the third SFC were to cover a period of five years, i.e. 2017-22.
The State Government had accepted the recommendation of Third SFC for the period
of 2020-25 in place of 2017-22 to be in conjunction with time period of Fifteenth
Finance Commission of India.
Fourth State Finance Commission was constituted on 29 July 2021 and the
recommendation of the fourth SFC were to cover a period of five years, i.e. 2025-30.
The Commission shall make its report available on or before 31 July 2023.
State Finance commissions were not constituted on time. The delay in constitution of
State Finance Commissions and implementation of the State Finance Commission’s
recommendations resulted in further delay in devolution of funds to the Local Bodies.
Devolution of State Own Tax Resources (SOTR) as recommended by SFCs and
modifications accepted by State government has been presented in Table 1.7.
Table 1.7: Devolution of SOTR accepted by the State government as per
recommendation of State Finance Commissions
(in per cent)
Recommendation of Devolution accepted by
Sl. State Finance Award
Devolution by SFC the State Government
No. Commission Period
PRI ULB Total PRI ULB Total
1 First 2007-12 6.62 1.66 8.28 4.79 1.21 6.00
2 Second 2012-20 6.15 1.85 8.00 6.15 1.85 8.00
3 Third 2020-25 6.91 2.09 9.00 6.91 2.09 9.00
4 Fourth 2025-30 - - - - - -
Source: Finance Commission reports
First SFC had recommended devolution of 8.28 per cent of the State’s Own Tax
Resources (SOTR) to the local bodies during its award period of 2007-12. However the
state Government agreed to devolve only 6 per cent (4.79 per cent to PRIs and 1.21 per
cent to ULBs). Second SFC had recommended devolution of 8 per cent of SOTR to the
local bodies during its award period 2012-17, the same was accepted by the State
Government. Out of devolution the share of PRIs was 6.15 per cent and the share of
ULBs was 1.85 per cent. Third SFC had recommended devolution of 9 per cent of net
SOTR to the local bodies during its award period 2017-22, the same was accepted by
the State Government for period 2020-25. Out of devolution the share of PRIs was 6.91
per cent and the share of ULBs was 2.09 per cent.
The details of fund flow with regard to recommendation by SFC, devolution accepted
and actual budget allocated and released by the State Government during 2017-18 and
2021-22 are shown in Table 1.8.

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 State Finances Audit Report for the year ended 31 March 2022

Table 1.8: SFC projections vis-à-vis Devolution accepted and Actual

budget/expenditure by the State Government during 2017-22
(` in crore)
Percentage Devolution accepted Budget Allocated Actual Release
Sl. recommended by SFC By State Government By State Government By State Government
Year
No.
PRI ULB Total PRI ULB Total PRI ULB Total PRI ULB Total
1 2017-18 (6.15) (1.85) (8.00) (6.15) (1.85) (8.00) 901 278 1179 946 442 1388
2 2018-19 (6.15) (1.85) (8.00) (6.15) (1.85) (8.00) 800 300 1100 839 300 1139
3 2019-20 (6.15) (1.85) (8.00) (6.15) (1.85) (8.00) 756 321 1077 750 321 1071
4 2020-21 (6.91) (2.09) (9.00) (6.91) (2.09) (9.00) 865 444 1309 606 442 1048
5 2021-22 (6.91) (2.09) (9.00) (6.91) (2.09) (9.00) 858 451 1309 651 451 1102
Figures in the bracket shows the per cent of net SOTR (State’s own tax revenue)

Actual fund released to ULB was as per the budget allocation during 2017-22 except in
2020-21 where marginal decline was observed. But actual fund released to PRI was less
than the budget allocated during last five year except in 2017-18.

1.8 Deficits and Total Debt after examination in Audit

Deficit and debt position are two crucial fiscal indicators in assessing the financial
health of the State. In order to present a true and fair picture of State Finances, various
issues that came to notice of audit which have an impact on the fiscal deficit and debt
position of the State Government are detailed below.
1.8.1 Post audit - Deficits/surplus
Certain issues viz. incorrect classification/booking of revenue expenditure as capital by
the State Government in its accounts of 2021-22, non-transfer of central share of grant
received to the respective funds and other issues, which are discussed in the Report in
succeeding Chapters, had an impact on Revenue/ Fiscal surplus/deficit indicated in the
Finance Accounts of 2021-22. In order to arrive at actual deficit figure, the impact of
above issues needs to be appropriately factored in.
The impact of issues pointed out above resulted in understatement of revenue
expenditure by `2,559.60 crore for the year 2021-22 which has been worked out in the
Table 1.9 and the assessment of revenue deficit and fiscal deficit after taking into
account the above audit impact is depicted in Table 1.10.

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 Chapter I - Overview

Table 1.9: Impact on Revenue Expenditure, post examinations by Audit

(` in crore)
Under
Over statement
Sl. statement of
Item of revenue
No. revenue
expenditure
expenditure
1 Misclassification between revenue and capital8 0 2,230.14
2 National Pension Scheme 0 3.92
3 Interest liabilities on National Pension Scheme 0 2.28
Non transfer of Infrastructure Development Cess
4 0 323.26
and Environment Cess
Total 0 2,559.60
Source: Finance Accounts 2021-22
Table 1.10: Result of impact computed by audit
(₹ in crore)
Sl. No. As per Overstated/ Actual/Post
Particular Finance Understated audit
Accounts (-) by examination
1 2 3 (4)=(2)+(3)
1 Revenue Deficit (-) /Surplus(+) 4,642.02 2,559.60 2,082.42
2 Fiscal deficit (-) (-)6,093.10 (-)329.46 (-)6,422.56
Source: Finance Accounts 2021-22

1.8.2 Post audit – Total Debt/ liabilities

Total liabilities as defined under the CG FRBM Act, 2005 means the liabilities included
under the Consolidated Fund and the Public Account of the State and include
borrowings by the public sector undertakings, special purpose vehicles and other
equivalent instruments including guarantees where the principal and interest are to be
serviced out of the State budget.
Audit examination revealed that during the period 2017-22, the State Government has
resorted to off-budget borrowings of `4,383.37 crore through five PSUs out of which
Government made repayment of principal of `510.57 crore besides servicing of interest
on these off-budget borrowings through State budget. This issue has been discussed in
detail in Para 4.15 of the Report. For computing post audit liabilities, the off-budget
borrowings have been added to the total liabilities.
In order to meet the shortfall in GST compensation to be paid to the State due to
inadequate balance in GST Compensation Fund, the Government of India set up a
special borrowing in the year 2020-21 and accordingly, released back to back loans to
the State amounting to `3,109 crore in 2020-21 and `4,965.15 crore in 2021-22 (total
`8,074.15 crore). This back to back loan has been considered over and above the yearly
net borrowing ceiling of the State fixed on the basis of Finance Commission

8
`2230.14 crore includes booking of revenue exp. i.e. Grant-in-aid (`2227.04 Crore), Maintenance
works (`0.09 crore), Office expenses (`1.23 crore) and Payment for professional services (`1.77 crore)
as capital exp.

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State Finances Audit Report for the year ended 31 March 2022

recommendation. Further, the debt servicing of this loan is to be done from the
collection of cess in GST Compensation Fund, and hence repayment obligation will not
be met from other resources of the State. For computing post audit liabilities back to
back loan received in lieu of GST compensation shortfall is also excluded.
Due to off-budget borrowings and back to back loan, the total debt/liabilities has
increased/decreased as a percentage of GSDP as given in Table 1.11.
Table 1.11: Overall liabilities, post examination in Audit
Sl. Particulars Amount Percentage of
No. (₹ in crore) GSDP
Total liabilities/Overall debt as per Accounts as on 99,172.89 24.79
1
31.03.2022 (A)
Net off-budget liabilities (`4,383.37 - `510.57) as on 3,872.80 0.97
2
31.03.2022(B)
Total liabilities including off-budget liabilities (C) = (A) + 1,03,045.69 25.76
3
(B)
4 Back to back loan in lieu of GST compensation shortfall (D) 8,074.15 2.02
5 Total liabilities (C)-(D) 94,971.54 23.74
Source: Finance Accounts 2021-22
It can be seen from the above table that the debt to GSDP percentage decreased from
24.79 per cent to 23.74 per cent after adjusting the off-budget liabilities and back to
back loan.

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 CHAPTER II
FINANCES OF THE STATE
 Chapter II: Finances of the State

2.1 Introduction
This chapter provides a broad perspective of the finances of the State, analyses the
critical changes in major fiscal aggregates relative to the previous year, overall trends
during the five-year period from 2017-18 to 2021-22, debt sustainability of the State
and key Public Account transactions, based on the Finance Accounts of the State.
Major changes in Key Fiscal Aggregates during 2021-22 vis-à-vis 2020-21

Table 2.1 gives a bird’s eye view of the major changes in key fiscal aggregates of the
State during 2021-22, compared to the previous year.
Table 2.1: Changes in key fiscal aggregates in 2021-22 compared to 2020-21
➢ Revenue Receipts of the State increased by 26.08 per cent
➢ Own Tax Receipts of the State increased by 18.33 per cent
Revenue
➢ Non-Tax Receipts increased by 94.08 per cent
Receipts
➢ State’s Share of Union Taxes and Duties increased by 40.48 per cent
➢ Grants-in-Aid from Government of India decreased by 20.81 per cent
➢ Revenue Expenditure increased by 7.11 per cent
➢ Revenue Expenditure on General Services increased by 9.14 per cent
Revenue
➢ Revenue Expenditure on Social Services increased by 11.56 per cent
Expenditure
➢ Revenue Expenditure on Economic Services increased by 1.25 per cent
➢ Expenditure on Grants-in-Aid and contributions decreased by 1.12 per cent
➢ Capital Expenditure increased by 16.40 per cent
Capital ➢ Capital Expenditure on General Services decreased by 30.93 per cent
Expenditure ➢ Capital Expenditure on Social Services increased by 10.19 per cent
➢ Capital Expenditure on Economic Services increased by 23.98 per cent
Loans and ➢ Disbursements of Loans and Advances increased by 541.70 per cent
Advances ➢ Recoveries of Loans and Advances decreased by 15.97 per cent
➢ Public Debt Receipts decreased by 30.04 per cent
Public Debt
➢ Repayment of Public Debt increased by 10.29 per cent
Public ➢ Public Account Receipts increased by 6.84 per cent
Account ➢ Public Account Disbursements increased by 6.90 per cent
Cash ➢ Cash balance and investment of cash balances increased by `460.25 crore
Balance (4.86 per cent) during 2021-22 over the previous year
Each of the above indicators is analyzed in the succeeding paragraphs.

2.2 Sources and Application of Funds

Table 2.2 compares the sources and application of funds of the State during 2021-22
with 2020-21 figures, while Charts 2.1 and 2.2 give the details of receipts into and
expenditure from the Consolidated Fund during 2021-22 in terms of percentages.

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State Finances Audit Report for the year ended 31 March 2022

Table 2.2: Details of Sources and Application of funds during

2020-21 and 2021-22
(` in crore)
Sl. Increase (+)/
Particulars 2020-21 2021-22
No. Decrease (-)
1 Source
2 Opening Cash Balance1 11,396.60 9,461.37 (-)1,935.23
3 Revenue Receipts 63,176.18 79,652.03 16,475.85
4 Misc. Capital Receipts 4.85 4.89 0.04
5 Recoveries of Loans and Advances 104.80 88.06 (-)16.78
6 Inter-State Settlement (-)0.67 (-)0.04 0.63
7 Public Debt Receipts (Net) 13,561.39 6,252.98 (-)7,308.41
8 Public Account Receipts (Net) 325.76 300.37 (-)25.39
9 Contingency Fund 0 0 0
10 Total 88,568.91 95,759.66 7,190.75
11 Application
12 Revenue Expenditure 70,032.84 75,010.01 4,977.17
13 Capital Expenditure 9,024.19 10,504.22 1,480.03
14 Disbursement of Loans and Advances 50.5 324.06 273.56
15 Inter-State Settlement 0.01 (-)0.25 (-)0.26
16 Contingency Fund 0.00 0.00 0.00
17 Closing Cash Balance 9,461.37 9,921.62 460.25
18 Total 88,568.91 95,759.66 7,190.75
Source: Finance Accounts 2020-21 and 2021-22
Chart 2.1: Sources of Resources (per cent) Chart 2.2: Application of Resources (per cent)

` comes from ` goes to

0.31%
9.34%
15.87% 22.58%
28.47% 11.44%
1.17%
10.66%

25.94%
0.10% 14.56% 29.53%
30.03%

Own Tax Revenue General Services (Revenue)

Non-Tax Revenue Social Services (Revenue)
Central Tax Transfer Economic Services (Revenue)
Others
Grants-in-Aid
Grants-in-Aid
Public Debt Receipts Capital Expenditure and L&A
Public Account Receipts(Net) Repayment of Public Debt

Source: Finance Accounts 2021-22

Note: Others include Recoveries of Loans &Advances and Capital Receipts

1
Opening/ closing cash balance includes cash balance, investments of cash balances & earmarked funds

Page 20
 Chapter II - Finances of the State

2.3 Resources of the State

1. Revenue Account receipts consist of tax revenue, non-tax revenue, State’s
share of Union taxes and duties and grants-in-aid from the Government of India (GoI).
2. Capital Account receipts comprise miscellaneous capital receipts such as
proceeds from disinvestments, recoveries of loans and advances, debt receipts from
internal sources (market loans, borrowings from financial institutions/commercial
banks) and loans and advances from GoI. Both revenue and capital receipts form part
of the Consolidated Fund of the State.
3. Net Public Accounts receipts: There are receipts and disbursements in respect
of certain transactions such as small savings, provident fund, reserve funds, deposits,
suspense, remittances, etc. which do not form part of the Consolidated Fund. These are
kept in the Public Account set up under Article 266 (2) of the Constitution and are not
subject to vote by the State Legislature. Here, the Government acts as a banker. The
balance after disbursements is the fund available with the Government for use.
2.3.1 Receipts of the State
Chart 2.3 presents the composition of the overall receipts. Besides, the Revenue and
Capital receipts, funds available in the Public Account (net of disbursement made from
it) are also utilized by the Government to finance its deficit.
Chart 2.3: Composition of receipts of the State during 2021-22

Total Receipts
(`95,143.59 crore)

Revenue Receipts Capital Receipts Public Accounts Contingency

(`79,652.03 crore) (`15,191.19 crore) Receipts (Net) Fund
(`300.37 crore)
(Nil)
Non-Tax Grants- Debt Non-Debt
Tax Receipts (Net Receipts)
Revenue Revenue in-aid Receipts
from GoI (`15,098.28 1. Small savings, PF
(`55,654.52 (`13,851.21 (`92.91 etc.,
crore) crore) (`10,146. crore) crore)
30 crore) (-`0.90 crore)
2. Reserve Funds
Own Tax Revenue State Share of Union 1. Internal bearing interest
1.
(`27,083.73 crore) Taxes & Duties Debt Recoveries (-`164.00 crore)
(`28,570.79 crore) including of Loans 3. Reserve Funds
special and not bearing interest
drawing Advances (`610.73 crore)
1. Taxes on facility
Sales, Trade etc. (`9,321.77 (`88.06 4. Deposits (interest
(`5,341.10 crore) and not bearing
crore)
crore) 2. interest) / advances
2. Loans (-`204.13 crore)
2. State Excise and Miscellane
(`5,106.61 Advances ous Capital 5. Suspense and
crore) from GoI Receipts Miscellaneous
3. Stamps and (`5,776.51 (`4.89 (`65.50 crore)
Registration fees crore) crore) 6. Remittances
etc.,
(`1,945.40 crore) (-`6.83 crore)
4. State GST
(`9,483.48 crore)

Source: Finance Accounts 2021-22

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State Finances Audit Report for the year ended 31 March 2022

2.3.2 Revenue Receipts

Revenue receipts consist of the State’s Own Tax and Non-Tax Revenue, Central Tax
transfers and Grants-in-aid from GoI.
2.3.2.1 Trends and growth of Revenue Receipts
Table 2.3 provides the trends and growth of Revenue receipts as well as revenue
buoyancy with respect to GSDP over the five-year period 2017-22. Further, trends in
Revenue Receipts relative to GSDP and composition of Revenue Receipts are given in
Charts 2.4 and 2.5 respectively.
Table 2.3: Trend in Revenue Receipts
(` in crore)
Sl. No. Parameters 2017-18 2018-19 2019-20 2020-21 2021-22
1 Revenue Receipts (RR) 59,647.07 65,094.93 63,868.70 63,176.18 79,652.03
2 Rate of growth of RR (per cent) 11.11 9.13 (-)1.88 (-)1.08 26.08
3 Own Tax Revenue 19,894.68 21,427.26 22,117.85 22,889.20 27,083.73
4 Non-Tax Revenue 6,340.42 7,703.02 7,933.77 7,136.95 13,851.21
Rate of growth of Own Revenue
5 (Own Tax and Non-tax Revenue) 6.58 11.04 3.16 (-)0.08 36.33
(per cent)
6 Gross State Domestic Product 2,82,266 3,27,693 3,44,571P 3,52,161Q 4,00,061A
7 Rate of growth of GSDP (per cent) 7.41 16.09 5.15 2.20 13.60
8 RR/GSDP (per cent) 21.13 19.86 18.54 17.94 19.91
Buoyancy Ratios2
9 Revenue Buoyancy w.r.t GSDP 1.50 0.57 (-)0.37 (-)0.49 1.92
State’s Own Revenue Buoyancy to
10 0.89 0.69 0.61 (-)0.04 2.67
GSDP
Source: Finance Accounts of the respective years, GSDP figures: Directorate of Economics and
Statistics of the Chhattisgarh State.
P-Provisional Estimates; Q-Quick Estimates; A-Advance Estimate

Revenue buoyancy measures the percentage change in the revenue receipts to the
percentage change in GSDP. As can be seen from Table 2.3, Revenue buoyancy which
was (-)0.49 during the year 2020-21 has increased to 1.92 in the year 2021-22, this
shows that during the year 2021-22 when GSDP has grown by one basis point, Revenue
Receipts of the State showed a growth of 1.92 basis points. Further, Own Revenue
buoyancy increased from (-)0.04 in 2020-21 to 2.67 during the year 2021-22 which
implies that during the year 2021-22 when GSDP of the State has grown by one basis
point, Own Revenue showed a growth by 2.67 basis points.

2
Buoyancy ratio indicates the elasticity or degree of responsiveness of a fiscal variable with respect to a
given change in the base variable.

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 Chapter II - Finances of the State

Chart 2.4: Trend of Revenue Receipts

(` in crore)
80,000 22%
21.13%
70,000
21%
60,000 19.91%
20%
50,000
19.86% 18.54%
40,000 19%
17.94%
59,647.07
30,000

65,094.93
18%

63,868.70

79,652.03
63,176.18
20,000
17%
10,000
0 16%
2017-18 2018-19 2019-20 2020-21 2021-22

Revenue Receipts (RR) As percentage of GSDP

Source: Finance Accounts of the respective years

Chart 2.5: Trend of components of Revenue Receipts
(` in crore)
60,000
55,654.52
50,000 42,323.69 43,226.74

40,000 44,885.95
40,649.49
30,000

20,000 12,657.16 13,611.24 12,812.49 13,851.21

12,505.95
10,000
7,136.95 10,146.30
6,340.42 7,703.02 7,933.77
0
2017-18 2018-19 2019-20 2020-21 2021-22

Tax Revenue Non-Tax Revenue Grants- in-aid from Govt. of India

(Own Tax &
Share of Union Taxes/duties)

Source: Finance Accounts of the respective years

An analysis of Revenue receipts of the State revealed that:

• Revenue receipts increased by `20,004.96 crore from `59,647.07 crore in
2017-18 to `79,652.03 crore during 2021-22. During 2021-22, Revenue
receipts increased by `16,475.85 crore (26.08 per cent) over previous year
mainly due to increase in receipts of Tax Revenue by `12,427.78 crore
(28.75 per cent) and Non-Tax Revenue by `6,714.26 crore (94.08 per cent).
• During 2017-18, about 44 per cent of the Revenue receipts came from State’s
own resources, while Central Tax Transfers and Grants-in-Aid together

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State Finances Audit Report for the year ended 31 March 2022

contributed 56 per cent. In the year 2021-22 about 51 per cent of the Revenue
receipts came from State’s own resources, while Central Tax Transfers and
Grants-in-Aid together contributed 49 per cent.
• During the current year, Revenue receipts increased significantly by 26.08 per
cent (`16,475.85 crore) while the Revenue expenditure increased by 7.11 per
cent (`4,977.17 crore), leading to Revenue surplus of `4,642.02 crore, as against
Revenue Deficit of `6,856.66 crore in the previous year.

2.3.3 State’s own resources

State’s share in central taxes is determined on the basis of recommendations of the

Finance Commission. Grants-in-Aid are determined by the quantum of collection of
Central tax receipts and anticipated Central assistance for schemes. State’s performance
in mobilization of additional resources should be assessed in terms of its own resources
comprising revenue from its own tax and non-tax sources.
The states actual Own Tax and Non-Tax Revenue receipts for the year 2017-18 to 2021-
22 are given in the Table 2.4.
Table 2.4: Growth of State’s own Tax/Non-Tax revenue during 2017-22
(` in crore)
Sl. No. Particulars 2017-18 2018-19 2019-20 2020-21 2021-22
1 Own Tax Revenue 19,894.68 21,427.26 22,117.85 22,889.20 27,083.73
2 Rate of Growth (per cent) 5.01 7.70 3.22 3.49 18.33
3 Non-Tax Revenue 6,340.42 7,703.02 7,933.77 7,136.95 13,851.21
4 Rate of Growth (per cent) 11.84 21.49 3.00 (-)10.04 94.08
Source: Finance Accounts of the respective years

• The growth rate of Own Tax Revenue (OTR) showed fluctuating trends ranging
from 3.22 per cent to 18.33 per cent during 2017-22 and increased significantly by
`4,194.57 crore (18.33 per cent) from `22,889.20 crore in 2020-21 to `27,083.73
crore in 2021-22.
• The growth rate of Non-Tax Revenue (NTR) showed fluctuating trends ranging
from (-)10.04 per cent to 94.08 per cent during 2017-22 and increased significantly
by `6,750.04 crore (94.08 per cent) from `7,136.95 crore in 2020-21 to `13,851.21
crore in 2021-22.
2.3.3.1 Own Tax Revenue
Own tax revenues of the State consist of State GST, State excise, taxes on vehicles,
Stamp duty and Registration fees, Land revenue, taxes on goods and passengers, etc.
Growth of Own Tax Revenue of the State Government during the five-year period 2017-
22 is given in Chart 2.6:

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 Chapter II - Finances of the State

Chart 2.6: Growth of Own Tax Revenue during 2017-22

(` in crore)
30,000 27,083.73 20
18
25,000 22,117.85 22,889.20 16
21,427.26
19,894.68 18.33
20,000 14
12
15,000 10
7.70
8
10,000 6
3.22 4
5,000 5.01 3.49 2
0 0
2017-18 2018-19 2019-20 2020-21 2021-22

Own Tax Revenue Growth Rate (per cent)

Source: Finance Accounts of the respective years

The component-wise details of Own Tax Revenue collected during the five-year period
2017-22 are given in Table 2.5.
Table 2.5: Component-wise Own Tax Revenue during 2017-22
(` in crore)
% Increase
Sl. (+) / Decrease
Heads 2017-18 2018-19 2019-20 2020-21 2021-22
No. (-) in 2021-22
over 2020-21
Taxes on Sales,
1 6,449.60 4,087.72 3,931.37 4,236.04 5,341.10 26.09
Trades, etc.
State Goods and
2 4,386.56 8,203.41 7,894.82 7,925.01 9,483.48 19.67
Services Tax
3 State Excise 4,054.00 4,489.03 4,952.36 4,635.80 5,106.61 10.16
4 Taxes on Vehicles 1,180.01 1,204.85 1,274.85 1,148.07 1,372.51 19.55
Stamps and
5 1,197.47 1,108.46 1,634.63 1,584.94 1,945.36 22.74
Registration Fees
6 Land Revenue 446.41 487.57 551.5 937.71 949.94 1.30
Taxes on Goods
7 477.66 54.51 40.51 79.83 47.90 (-)40.00
and Passengers
Taxes and duties
8 1,688.96 1,790.27 1,837.00 2,341.41 2,836.05 21.13
on electricity
3
9 Other Taxes 14.01 1.44 0.81 0.39 0.78 100.00
Total 19,894.68 21,427.26 22,117.85 22,889.20 27,083.73 18.33
Source: Finance Accounts of respective years

• Own Tax Revenue of the State increased by `7,189.05 crore (36.14 per cent)
from `19,894.68 crore in 2017-18 to `27,083.73 crore in 2021-22. During the
current year, the Own Tax Revenue increased by `4,194.57 crore (18.33 per
cent) mainly due to increase in receipts under State Goods and Services Tax
(`1,558.47 crore), Taxes on Sales, Trades, etc. (`1,105.06 crore).

3
Other taxes include Hotel Receipts Tax and Other Taxes on Income and Expenditure.

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 State Finances Audit Report for the year ended 31 March 2022

• Out of the Total Own Tax Revenue of `27,083.73 crore in 2021-22, the State
Goods and Services Tax contributed 35.02 per cent followed by Taxes on Sales,
Trades, etc. 19.72 per cent and State Excise 18.85 per cent.
2.3.3.2 State Goods and Services Tax (SGST)
The State Government implemented the Goods and Services Tax (GST) Act, with
effect from 01 July 2017. Under the GST (Compensation to the States) Act, 2017, the
Central Government will compensate the States for loss of revenue arising on account
of implementation of GST for a period of five years. The compensation payable to the
State shall be calculated for every financial year after the receipt of final revenue
figures, as audited by the Comptroller and Auditor General of India. A base year (2015-
16) revenue figure of taxes subsumed under GST was finalised under GST Act. As per
the provisions of the Act, the projected revenue for Chhattisgarh was calculated at
`16,149.36 crore for the year 2021-22 by applying the projected growth at the rate of
14 per cent per annum over the base year (2015-16) revenue of `7,357.43 crore.
Revenue on account of GST for the year 2021-22 has been depicted in the Finance
Accounts as per nature of receipts i.e., State Goods and Services Tax (SGST), Input
Tax Credit cross utilization of SGST and Integrated Goods and Services Tax (IGST),
Apportionment of IGST-transfer-in of Tax component to SGST and Advance
apportionment from IGST. Against the projected revenue of `16,149.36 crore, the
revenue receipts of the State under GST were `9,483.48 crore during the year 2021-22.
The State Government received compensation of `1,216.86 crore from GoI for loss of
revenue arising out of implementation of GST. Besides, the State Government also
received back to back loan of `4,965.15 crore from GoI to meet the resource gap due
to shortfall in GST compensation during 2021-22.
2.3.3.3 Non-Tax Revenue
Non-Tax revenue consists of interest receipts, dividends and profits, mining receipts,
departmental receipts, etc. The component-wise details of Non-Tax Revenue collected
during the years 2017-22 were as follows:
Table 2.6: Component wise non-tax Revenue during 2017-22
(` in crore)
% Increase
Sl. (+)/ Decrease
Revenue head 2017-18 2018-19 2019-20 2020-21 2021-22
No. (-) in 2021-22
over 2020-21
Non-ferrous Mining and
1 4,911.44 6,110.24 6,195.73 5,538.49 12,305.39 122.18
Metallurgical Industries
2 Interest receipts 180.44 189.55 232.41 89.77 137.96 53.68
3 Dividend and Profits 4.80 1.49 2.39 2.29 3.64 58.95
4 Major Irrigation 461.23 521.81 437.04 445.91 418.17 (-)6.22
5 Forestry and Wild Life 291.17 236.73 249.37 277.09 346.90 25.19
6 Other non-tax receipts 491.34 643.20 816.83 783.40 639.15 (-)18.41
Total 6,340.42 7,703.02 7,933.77 7,136.95 13,851.21 94.08
Source: Finance Accounts of the respective years

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 Chapter II - Finances of the State

The Total Non-Tax Revenue receipts increased by `7,510.79 crore (118.46 per
cent) from `6,340.42 crore in 2017-18 to `13,851.21 crore in 2021-22. The Non-
Tax Revenue increased significantly by `6,750.04 crore (94.08 per cent) during
2021-22 over the previous year mainly due to increase in receipts from auction of
coal blocks and other minerals under Non-ferrous Mining and Metallurgical
Industries by `6,766.90 crore.

2.3.3.4 Transfers of funds from the Centre

Transfer of funds from Central Government are dependent on recommendations of
Finance Commission. The trends in this regard during the ten year period 2012-22 are
given in Chart 2.7:
Chart 2.7: Trends in transfers from the Centre
(` in crore)
40,000 38,717
35,965
33,412 33,817 33,150
35,000
29,071 28,571
30,000
23,778 23,459
25,000
20,755 20,206 20,338
18,809
20,000 17,351
15,716
15,000 11,928 12,606
8,363
10,000 7,218 7,880 13,611
12,657 12,506 12,812
10,262 10,146
5,000 8,062
8,988
4,710 4,726
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Transfers from Centre Share in Central Taxes Grants from Centre

Source: Finance Accounts of the respective years

Transfer of funds from the Centre have increased from 2015-16 onwards, as State’s
share of Central taxes increased to 42 per cent from 32 per cent as per XIV Finance
Commission. Also, The GoI accepted the recommendations of XV FC to decrease the
States’ share in the divisible pool of taxes from 42 per cent to 41 per cent with effect
from 2020-21 onwards.
Transfers from the Centre increased by `26,789.16 crore from `11,927.93 crore in
2012-13 to `38,717.09 crore in 2021-22. During the current year, Transfers from the
Centre increased by `5,567.06 crore from ` 33,150.03 crore in 2020-21 to `38,717.09
crore in 2021-22.
Central Tax Transfers
The details of Chhattisgarh State’s share in Union Taxes and Duties during 2017-22 are
given in Table 2.7.

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 State Finances Audit Report for the year ended 31 March 2022

Table 2.7: Central Tax Transfers

(` in crore)
Sl.
Head 2017-18 2018-19 2019-20 2020-21 2021-22
No.
1 Central Goods and Services Tax 291.44 5,789.33 5,733.71 6,068.90 8,628.50
2 Integrated Goods and Services Tax 2,094.36 462.00 0.00 0.00 0.00
3 Corporation Tax 6,352.98 8,157.09 6,889.42 6,117.65 7,699.82
Taxes on Income other than
4 5,364.62 6,007.35 5,398.34 6,269.51 8,887.95
Corporation Tax
5 Customs 2,093.70 1,662.66 1,280.78 1,097.20 2,017.68
6 Union Excise Duties 2,188.50 1,104.93 890.49 686.04 1,009.06
7 Service Tax 2,369.40 217.76 0.00 84.52 296.68
8 Other Taxes (-)0.19 57.57 13.10 13.72 31.10
9 Central Tax transfers 20,754.81 23,458.69 20,205.84 20,337.54 28,570.79
Percentage of increase over
10 10.34 13.03 (-)13.87 0.65 40.48
previous year
Percentage of Central tax
11 34.80 36.04 31.64 32.19 35.87
transfers to Revenue Receipts
Source: Finance Accounts of the respective years

Over the five-year period 2017-22, Central tax transfers increased by `7,815.98 crore
(37.66 per cent) from `20,754.81 crore in 2017-18 to `28,570.79 crore in 2021-22.
The growth rate of Central Tax Transfers showed fluctuating trends ranging from
(-)13.87 per cent to 40.48 per cent during 2017-22. The increase of Central Tax
transfers by `8,233.25 crore (40.48 per cent) in 2021-22 over the previous year was
mainly under Taxes on Income other than Corporation Tax (`2,618.44 crore) and
Central Goods and Service tax (`2,559.60 crore).

2.3.3.5 Grants-in-Aid from Government of India

The State Government receives Grants-in-Aid and share of Union Taxes and Duties
based on the recommendations of Finance Commission. Details of Grants-in-Aid
(GIA) received by the State Government from GoI during 2017-22 are given below in
Table 2.8:
Table 2.8: Grants-in-Aid from GoI
(` in crore)
Sl.
Particulars 2017-18 2018-19 2019-20 2020-21 2021-22
No.
1 Grants for Centrally Sponsored Schemes 9,275.76 8,214.77 7,808.24 6,975.55 6,170.60
2 Finance Commission Grants 1,460.23 1,679.48 2,044.75 2,289.50 2,379.80
3 Other Transfers/Grants to State 1,921.17 2,611.70 3,758.25 3,547.44 1,595.90
4 Total 12,657.16 12,505.95 13,611.24 12,812.49 10,146.30
Percentage of increase over the previous
5 23.34 (-)1.19 8.84 (-)5.87 (-)20.81
year
6 Revenue Receipts 59,647.07 65,094.93 63,868.70 63,176.18 79,652.03
Total grants-in-aid as a percentage of
7 21.22 19.21 21.31 20.28 12.74
Revenue Receipts of the State
Source: Finance Accounts of the respective years

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 Chapter II - Finances of the State

GIA constituted 12.74 per cent of revenue receipts of the State Government during
the year 2021-22. Grants for Centrally Sponsored Schemes (`6,170.60 crore) to the
State constituted 61 per cent of the total grants during the year. Finance
Commission Grants (`2,379.80 crore) to the State were provided for Local Bodies
and State Disaster Response Fund (SDRF) and constituted 23 per cent of total
grants during the year. Other Grants to State from the GoI (`1,595.90 crore) included
GST compensation of `1,216.86 crore which constituted 76.25 per cent of other
transfer/grant.
Grants-in-Aid from GoI decreased by `2,666.19 crore (20.81 per cent) during the
year 2021-22 compared to the previous year primarily due to decrease in receipt of
Grants for Centrally Sponsored Schemes by `804.95 crore (under Pradhan Mantri
Awas Yojna (Urban) (`234.01 crore), Urban Rejuvenation Mission-(AMRUT)
(`411.38 crore) and others) and GST compensation by `1,951.54 crore under Other
Transfers/Grants to State.
Further, the State Government received back to back loan of `4,965.15 crore in lieu of
shortfall in GST compensation during 2021-22 as debt receipt which would otherwise
be a transfer as GIA from GoI.
2.3.3.6 Fifteenth Finance Commission Grants
Government of India provided grants under Fifteenth Finance Commission for local
bodies and State Disaster Risk Management Fund (SDRMF) to the states. Details of
grants provided by the GoI to the State in this regard during the year 2021-22 are given
in Table 2.9:
Table 2.9: Grants-in-Aid released by GoI during 2021-22 as per recommendation
of Fifteenth Finance Commission (XVFC)
(` in crore)
Sl. Recommendation of 15th Grant released in
Transfers
No. FC 2021-22 by GoI
Local Bodies
1 Grants to PRIs
(a) Basic Grants (Grants-in-aid-General) 1,075.00 1,075.00
2 Grants to ULBs
(a) Grants for Million Plus cities 163.00 107.50#
(b) Grants for non-Million Plus cities 367.00 426.50*
3 Health Grant to Local Bodies 339.00 338.80
4 Total for Local Bodies 1,944.00 1,947.80
State Disaster Risk Management
5 432.00 432.00
Fund (SDRMF)
6 Grand Total 2,376.00 2,379.80
Source: Finance Accounts of 2021-22 and XVFC report
# Includes `53.50 crore pertaining to the year 2020-21 released by GoI in the 2021-22, * Includes `243
crore pertaining to the year 2020-21 released by GoI in the 2021-22

• As of March 2022, the State Government received entire basic grants for PRIs
(`1,075.00 crore) as against the recommendation of Fifteenth Finance Commission
(XVFC) during 2021-22.

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 State Finances Audit Report for the year ended 31 March 2022

• The State Government received `237.50 crore for ULBs against the XVFC
recommendation of `530.00 crore for the year 2021-22. Grant of ₹ 296.50 crore for
ULBs against the recommendation of XVFC for the year 2020-21 was also received
during the year 2021-22.
• The State Government received entire Union’s share of State Disaster Response
Fund against the recommendation of XVFC (`432.00 crore) during 2021-22.

2.3.3.7 Receipts under Capital Section

Receipts under capital section comprise miscellaneous capital receipts such as proceeds
from disinvestment, recoveries of loans and advances, debt receipts from internal
sources (market loans, borrowings from financial institutions/ commercial banks) and
loans and advances from GoI.
The following table shows the trends in growth and composition of receipts in capital
section for the year 2017-18 to 2021-22.
Table 2.10: Trends in growth and composition of Receipts in Capital Section
(` in crore)
Sl. Sources of State’s Receipts under
2017-18 2018-19 2019-20 2020-21 2021-22
No. capital section
1 Miscellaneous Capital Receipts 3.32 5.26 4.70 4.85 4.89
2 Recovery of Loans and Advances 138.59 162.32 256.78 104.80 88.06
3 Inter-State Settlement 1.24 0.56 0.13 (-)0.67 (-)0.04
4 Non-Debt Capital Receipts (A) 143.15 168.14 261.61 108.98 92.91
5 Internal Debt 9,187.89 13,816.66 19,308.36 17,961.37 9,321.77
6 Growth Rate (in per cent) 80.21 50.38 39.75 (-)6.98 (-)48.10
Loans and advances from the Central
7 464.55 553.44 279.17 3,620.31 5,776.51
Government
8 Growth Rate (in per cent) 21.76 19.13 (-)49.56 1,196.81 59.56
9 Public Debt Receipts (B) 9,652.44 14,370.10 19,587.53 21,581.68 15,098.28
10 Receipts under capital section (A+B) 9,795.59 14,538.24 19,849.14 21,690.66 15,191.19
Rate of growth of non-debt Capital
11 (-)18.54 17.46 55.59 (-)58.34 (-)14.75
Receipts (per cent)
Rate of growth of Public Debt receipts
12 76.14 48.88 36.31 10.18 (-)30.04
under capital section (per cent)
Rate of growth of GSDP at current
13 7.41 16.09 5.15 2.20 13.60
price (per cent)
Rate of growth of receipts under
14 73.20 48.42 36.53 9.28 (-)29.96
capital section (per cent)
Source: Finance Accounts of the respective years
Capital section receipts of the State increased by `5,395.60 crore (55.08 per cent) from
`9,795.59 crore in 2017-18 to `15,191.19 crore in 2021-22. During 2021-22, the capital
section receipts decreased by `6,499.47 crore (29.96 per cent) over the previous year
mainly due to decrease in Public Debt receipts by `6,483.40 crore (30.04 per cent)
inspite of increase in loans and advances from GoI. Increase in loans and advances was
due to receipt of `4,965.15 crore from GoI as back to back loan in lieu of GST
compensation shortfall.
Non-Debt capital receipts, mainly in the form of recovery of loans and advances
decreased by `16.07 crore (14.75 per cent) in 2021-22 over the previous year.

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 Chapter II - Finances of the State

2.3.4 State’s performance in mobilization of resources

State’s performance in mobilization of resources is assessed in terms of its own
resources comprising own-tax and non-tax sources. Details of the State’s actual own
tax and non-tax revenues for 2021-22 in comparison to the Fifteenth Finance
Commission (XVFC) assessment and budget estimates are given in Table 2.11.
Table 2.11: Tax and non-tax receipts vis-à-vis projections
(` in crore)
Percentage variation of
Sl. XVFC Budget actual over
Particulars Actual
No. projections Estimates Budget XVFC
estimates projections
1 Own Tax revenue 24,105.00 25,750.00 27,083.73 5.18 12.36
2 Non-tax revenue 8,871.00 9,250.00 13,851.21 49.74 56.14
Total 32,976.00 35,000.00 40,934.94 16.96 24.14
Source: Finance Accounts, Budget Books and Finance commission report
The State Government exceeded in meeting the expectations of the XVFC by 24.14 per
cent and 16.96 per cent in mobilizing its own resources against the targets set in its own
budget estimates. Increase in Own Tax revenue (`1,333.74 crore) was mainly due to
increase in Taxes on Sales, Trades, etc. by ` 984.21 crore than projections made in the
budget. Similarly, increase of `4,601.21 crore in Non-Tax revenue was mainly due to
more receipts under Non Ferrous Mining and Metallurgical Industries (`5,705.39 crore)
than projections made in the budget.

2.4 Application of Resources

The State Government is vested with the responsibility of incurring expenditure within
the framework of fiscal responsibility legislations, while at the same time ensuring that
the ongoing fiscal correction and consolidation process of the State is not at the cost of
expenditure directed towards development of capital infrastructure and social sector.
2.4.1 Growth and composition of expenditure
The total expenditure incurred, its composition, and relative share in GSDP during the
years 2017-18 to 2021-22 is presented in Table 2.12.
Table 2.12: Total Expenditure and its composition
(` in crore)
Sl. 2021-22 2021-22
Parameters 2017-18 2018-19 2019-20 2020-21
No. (Budget) (Actual)
Total
1 66,600.54 73,555.31 82,099.86 79,107.54 97,106.45 85,838.04
Expenditure(TE)
Revenue
2 56,229.75 64,411.17 73,477.31 70,032.84 83,027.55 75,010.01
Expenditure (RE)
Capital
3 10,000.96 8,903.45 8,566.39 9,024.19 13,839.35 10,504.22
Expenditure

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State Finances Audit Report for the year ended 31 March 2022

Loans and
4 369.83 240.69 56.16 50.51 239.55 323.81
Advances4
5 As a percentage of GSDP
GSDP at current
6 2,82,266 3,27,693 3,44,571 3,52,161 3,83,098 4,00,061
prices
7 TE/GSDP 23.59 22.45 23.83 22.46 25.35 21.46
8 RE/GSDP 19.92 19.66 21.32 19.89 21.67 18.75
9 CE/GSDP 3.54 2.72 2.49 2.56 3.61 2.63
Loans and
10 0.13 0.07 0.02 0.01 0.06 0.08
Advances/GSDP
Source: Finance Accounts of the respective years

The above table shows that total expenditure of the State increased by 19,237.50 crore
(28.88 per cent) from `66,600.54 crore in 2017-18 to `85,838.04 crore in 2021-22.
The total expenditure showed increasing trend during 2017-22 except for the year
2020-21. However, the total expenditure as a percentage of GSDP decreased from
23.59 per cent to 21.46 per cent during the same period. During the current year, total
expenditure increased by `6,730.50 crore (8.51 per cent) over the previous year due
to increase in revenue expenditure by `4,977.17 crore (7.11 per cent), capital
expenditure by `1,480.03 crore (16.40 per cent) and loans and advances by `273.30
crore (541.08 per cent).
During the 2021-22, actual expenditure on revenue and capital was less than the
budgeted estimates however the expenditure on loans and advances was more than the
budgeted estimates. Deviations from the budget estimates are indicative of non-
attainment and non-optimisation of the desired fiscal objectives due to a variety of
causes, both within and outside the control of the Government.
Further, the revenue expenditure as a percentage of GSDP has decreased from 19.89
per cent to 18.75 per cent, while capital expenditure as a percentage of GSDP
increased from 2.56 per cent to 2.63 per cent over the previous year. Chart 2.8 depicts
the trend of the share of the components in total expenditure.
Chart 2.8: Total Expenditure: Trends in share of its components
(in per cent)
0.55 0.33 0.07 0.06 0.38
100
15.02 12.10 10.43 11.41 12.24
80

60

40 84.43 87.57 89.50 88.53 87.39

20

0
2017-18 2018-19 2019-20 2020-21 2021-22
Revenue Expenditure (RE) Capital Expenditure Loans and Advances
Source: Finance Accounts of the respective years

4
Loans and advances including inter-State settlement.

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 Chapter II - Finances of the State

It is evident from the above Chart that Capital Expenditure and Loans & Advances have
generally displayed a decreasing trend with inter year fluctuations in the last five years.
In terms of activities, the total expenditure (refer Appendix 2.1) comprises of
expenditure on General Services including Interest Payments, Social Services,
Economic Services and others. Relative expenditure on these components is shown in
Table 2.13.
Table 2.13: Relative share of various sectors of expenditure
(` in crore)
Sl. No. Parameters 2017-18 2018-19 2019-20 2020-21 2021-22
1 General Services 13,373.74 15,535.80 19,289.82 20,095.21 21,727.03
2 Social Services 27,116.57 25,319.17 28,610.12 28,001.32 31,382.55
3 Economic Services 24,744.50 31,804.93 33,079.55 29,885.69 31,615.95
Others (Grants to Local Bodies
4 1,365.73 895.41 1,120.37 1,125.32 1,112.51
and Inter-State settlement)
Total Expenditure 66,600.54 73,555.31 82,099.86 79,107.54 85,838.04
Source: Finance Accounts of the respective years

• Expenditure on General services increased by `1,631.82 crore (8.12 per cent) from
`20,095.21 crore in 2020-21 to `21,727.03 crore in 2021-22 mainly due to increase
in expenditure on Government Contribution to Defined Pension Contribution
Scheme by `286.00 crore and interest payment by `511.00 crore.
• Expenditure in Social Services increased by `3,381.23 crore (12.08 per cent) over
the previous year mainly due to increase in expenditure in General Education by
`1,361.11 crore, Medical and Public Health by `844.93 crore and Water supply and
Sanitation by `534.62 crore.
• Expenditure in Economic Services increased by `1,730.26 crore (5.79 per cent) over
the previous year mainly due to increase in expenditure on Rural Employment by
`629.41 crore and Road and Bridges by `1,071.81 crore.
Chart 2.9: Total expenditure - Expenditure by activities
(in per cent)
100 2.05 1.22 1.36 1.42 1.30

80 37.15 43.24 40.29 37.78 36.83

60

40 40.72 34.85 35.40 36.56

34.42

20
20.08 21.12 23.50 25.40 25.31
0
2017-18 2018-19 2019-20 2020-21 2021-22

General Services Social Services Economic Services Others

Source: Finance Accounts of the respective years

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State Finances Audit Report for the year ended 31 March 2022

As can be seen from Chart 2.9, Social and Economic services constituted 73.39 per
cent of total expenditure during the 2021-22. The State has spent more amount in social
services whereas marginal reduction has been seen in General and Economic services
w.r.t to activity components of total expenditure during 2021-22. Chart 2.10 depicts
the composition of expenditure during 2021-22.
Chart 2.10: composition of total expenditure during 2021-22
(in per cent)
Loand & Advances,
0.38% General Services
(Revenue), 24.90%
Social Services
(Revenue), 32.58%

Social Services
General Services
(Capital), 3.77%
(Capital), 0.41%

Economic Services
GiA contributions (Revenue), 28.61%
(Revenue), 1.29% Economic Services
(Capital), 8.06%

Source: Finance Accounts 2021-22

Chart 2.10 presents that during the year 2021-22, the revenue expenditure under Social
Services was highest at 32.58 per cent of total expenditure followed by Economic
Service 28.61 per cent and General Service 24.90 per cent. The capital expenditure on
General, Social, Economic services and loans and advances disbursed was 12.61 per
cent of total expenditure.
2.4.2 Revenue Expenditure
Revenue expenditure is incurred to maintain the current level of services and payment
for the past obligations. As such, it does not result in any addition to the State’s
infrastructure and service network.
The overall revenue expenditure, its rate of growth, its ratio to total expenditure and
buoyancy vis-à-vis GSDP and revenue receipts are indicated in Table 2.14 and trend of
revenue expenditure w.r.t. Budget estimates and GSDP is shown in Chart 2.11.
Table 2.14: Revenue Expenditure–basic parameter
(` in crore)
Sl. No. Parameters 2017-18 2018-19 2019-20 2020-21 2021-22
1 Total Expenditure (TE) 66,600.55 73,555.31 82,099.86 79,107.54 85,838.04
2 Revenue Expenditure (RE) 56,229.75 64,411.17 73,477.31 70,032.84 75,010.01
3 Rate of Growth of RE (per cent) 16.74 14.55 14.08 (-)4.69 7.11
Revenue Expenditure as
4 84.43 87.57 89.50 88.53 87.39
percentage of TE
5 RE/GSDP (per cent) 19.92 19.66 21.32 19.89 18.75

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 Chapter II - Finances of the State

6 Revenue Receipts (RR) 59,647.07 65,094.93 63,868.70 63,176.18 79,652.03

7 Rate of Growth of RR (per cent) 11.11 9.13 (-)1.88 (-)1.08 26.08
8 RE as percentage of RR 94.27 98.95 115.04 110.85 94.17
Buoyancy of Revenue Expenditure with
9 GSDP (ratio) 2.26 0.90 2.73 (-)2.13 0.52
10 Revenue Receipts (ratio) 1.51 1.59 (-)7.49 4.34 0.27
Source: Finance Accounts of respective years

Revenue expenditure continued to be the dominant component of the total expenditure

and its share increased from 84.43 per cent in the year 2017-18 to 87.39 per cent in the
year 2021-22. The rate of growth of revenue expenditure of the state showed a
decreasing trend from 16.74 per cent in 2017-18 to 7.11 per cent in 2021-22 with inter
year fluctuations. Revenue expenditure increased during 2021-22 by `4,977.17 crore
(7.11 per cent) over the previous year mainly due to increase in salary and wages from
`21,543.04 crore in 2020-21 to `23,541.33 crore in 2021-22. Revenue Expenditure
buoyancy with GSDP measures the percentage change in the revenue expenditure to the
percentage change in GSDP. As can be seen from the Table 2.14, the revenue
expenditure buoyancy ratio which was (-)2.13 in the year 2020-21 has increased to 0.52
in the year 2021-22 due to positive growth rate of revenue expenditure.
Chart 2.11: Revenue Expenditure w.r.t. Budget estimates and GSDP
(` in crore)
90,000 22.00
21.32
75,000
21.00

83,027.55
60,000 19.92 19.89 75,010.01
19.66 20.00
78,594.53
73,477.31

45,000
70,032.84
68,422.62
64,411.17
61,312.83

81,399.95
56,229.75

19.00
30,000
18.75
18.00
15,000

0 17.00
2017-18 2018-19 2019-20 2020-21 2021-22

Revenue Exp Rev Exp (Budget Estimates) RE/GSDP (%)

Source: Finance Accounts of respective years
As can be seen from above Chart, the revenue expenditure was within the budgeted
estimates in last five years i.e. 2017-18 to 2021-22. During 2021-22, revenue
expenditure as percentage of GSDP has decreased from 19.89 per cent to 18.75 per cent
over the previous year.

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State Finances Audit Report for the year ended 31 March 2022

The sectoral distribution of revenue expenditure is given in Chart 2.12:

Chart 2.12: Sectoral distribution of Revenue Expenditure during 2021-22
(in per cent)
Fiscal Services Interest Payments and
1% servicing of debt
Economic 9%
Services
33%
Administrative
services
8%
Organ of the
State
1%
Social Services
37%
Pension and Miscellaneous
General Services Grant-in-aid
10% contributions
1%

Source: Finance Accounts of 2021-22

2.4.2.1 Major Changes in Revenue Expenditure

Table 2.15 details significant variations under various Heads of Account with regard to
Revenue expenditure of the State during the current year and the previous year.
Table 2.15: Details of significant variation in Revenue Expenditure
(` in crore)
Sl. Increase (+)/
Major Heads of Accounts 2020-21 2021-22
No. Decrease (-)
1 2202-General Education 13,964.06 15,332.29 1,368.23
2 2210-Medical and Public Health 4,924.27 5,956.21 1,031.94
3 2505-Rural Employment 971.90 1,601.31 629.41
4 2049-Interest Payments 5,633.11 6,144.24 511.13
5 2406-Forest 1,039.07 1,300.58 261.51
6 2055-Police 3,909.77 4,265.75 355.98
7 2801-Power 4,393.81 3,800.00 (-)593.81
8 2515-Other Rural Development Programmes 2,453.72 2,096.79 (-)356.93
Source: Finance Accounts for the respective years

Revenue expenditure under Major Head 2202-General Education increased

significantly during the year, primarily due to increase in expenditure on Government
Secondary Schools and teachers training. Increase in expenditure under the Head 2210-
Medical and Public Health was mainly due to increase on expenditure of components
of public health like Prevention and Control of Diseases, Tribal Sub-Plan etc. by 123
per cent. Further, increase in expenditure under the Head 2505-Rural Employment
during 2021-22 as compared to previous year was due to increase in expenditure on
assistance provided to Zilla Panchayats by 70 per cent.
During 2021-22, decrease in expenditure under the Major Head 2801-Power was due to
less expenditure incurred on Special Component Plan for Scheduled Castes under

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 Chapter II - Finances of the State

General and Rural Electrification as compared to previous year. Decrease in expenditure

on 2515-Other Rural Development Programmes during current year was mainly due to
decrease in expenditure on Assistance to Gram Panchayats and Assistance to Janpad
Panchayats over the previous year.
2.4.2.2 Committed and Non-Committed Expenditure
Expenditure of the State Government on revenue account can be classified as committed
and non-committed expenditure. Committed Expenditure of Government on revenue
account consists mainly of expenditure on salaries and wages, interest payments,
pensions and subsidies. Expenditure other than committed expenditure can be classified
into non-committed expenditure. Increase in committed expenditure restricts the
Government’s ability to incur developmental expenditure.
Table 2.16 presents the trends in the components of committed expenditure during
2017-22.
Table 2.16: Components of Committed Expenditure
(` in crore)
Components of
Sl. 2021-22 2021-22
Committed 2017-18 2018-19 2019-20 2020-21
No. (Budget) (Actual)
Expenditure
1 Salaries & Wages 13,183.70 17,807.60 21,763.92 22,002.14 25,121.65 24,017.78
Expenditure on
2 3,923.58 5,428.50 6,637.98 7,136.00 6,580.76 7,472.22
Pensions
3 Interest Payments 3,098.33 3,652.55 4,970.36 5,633.11 6,470.83 6,144.24
4 Subsidies 5,004.69 8,323.01 11,483.23 7,307.94 7,479.68 6,565.30
5 Total 25,210.30 35,211.66 44,855.49 42,079.19 45,652.92 44,199.54
6 As a percentage of Revenue Receipts (RR)
7 Salaries & Wages 22.10 27.36 34.08 34.83 31.54 30.15
Expenditure on 8.26
8 6.58 8.34 10.39 11.3 9.38
Pensions
9 Interest Payments 5.19 5.61 7.78 8.92 8.12 7.71
10 Subsidies 8.39 12.79 17.98 11.57 9.39 8.24
11 Total 42.26 54.10 70.23 66.62 57.31 55.48
12 As a percentage of Revenue Expenditure (RE)
13 Salaries & Wages 23.45 27.65 29.62 31.41 33.49 32.02
Expenditure on 8.77
14 6.98 8.43 9.03 10.19 9.96
Pensions
15 Interest Payments 5.51 5.67 6.77 8.04 8.63 8.19
16 Subsidies 8.90 12.92 15.63 10.44 9.97 8.75
17 Total 44.84 54.67 61.05 60.08 60.86 58.92
Source: Finance Accounts of the respective years

The committed expenditure affects the State in prioritising expenditure and in meeting
capital investments to meet growing needs of social and economic infrastructure. The
high proportion of committed expenditure to revenue receipts and revenue expenditure
indicates that the State has limited flexibility in allocation of its resources for new
schemes. Table 2.16 shows that, Committed Expenditure has increasing trend and
grown from `25,210.30 crore (44.84 per cent of RE)) in 2017-18 to `44,199.54 crore
(58.92 per cent of RE) in 2021-22. During the current year, committed Expenditure
increased by `2,120.35 crore mainly on account of increase in expenditure towards

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State Finances Audit Report for the year ended 31 March 2022

Salaries & Wages. The interest payment has increased (98.31 per cent) as compared to
the year 2017-18 due to continuous rise in the public debt during 2017-18 to 2021-22.
Further, during 2021-22, the State Government, paid `6,565.30 crore as subsidy. The
expenditure on subsidies increased by `1,560.61 crore (31.18 per cent) from `5,004.69
crore in 2017-18 to `6,565.30 crore in 2021-22. It also includes central assistance of
`168.07 crore for subsidy under Centrally Sponsored Schemes. During the year
2021-22, subsidy of `6,565.30 crore (which was less than the budget estimates of
`7,479.68 crore) was 8.24 per cent and 8.75 per cent of revenue receipts and revenue
expenditure respectively. Subsidies as a percentage of Revenue Receipt decreased from
11.57 per cent in 2020-21 to 8.24 per cent in 2021-22 and as a percentage of Revenue
expenditure decreased from 10.44 per cent in 2020-21 to 8.75 per cent in 2021-22. The
overall decrease (`742.64 crore) during the 2021-22 as compared to previous year 2020-
21 was mainly due to decrease in subsidies under Chief Ministers food assistance
scheme. The departments with major portion of subsidy during the year 2021-22 are
shown in Table 2.17.
Table 2.17: Departments with major portion of subsidy during the year 2021-22
Sl. Name of the Subsidy Percentage of
Particulars
No. Department (` in crore) total Subsidy
Grant (`1,075.00 crore) for free Supply of electricity
to Agriculture Pumps up to five Horse Power and
1 Energy 2,243.00 34.16
Relief in Electricity Bills (`900 crore) to Domestic
Electricity Consumers
On Account of grant to State Cooperative Marketing
Food and
Federation for meeting losses on food procurement
2 Civil 3,675.95 55.98
(`1,005.25 crore) and Chief Ministers Food
Supplies
Assistance Scheme (`2,382.99 crore)
Source: Finance Accounts 2021-22

The trend of committed expenditure w.r.t. Budget estimates and GSDP is shown in
Chart 2.13.
Chart 2.13: Committed Expenditure w.r.t. Budget estimates and GSDP
(` in crore)
50,000 13.02 14.00
11.95
45,000 11.05
10.75 12.00
40,000
35,000 8.93 10.00
30,000 8.00
45,653
44,855

44,648

44,200

25,000
42,079
41,630

6.00
35,212

20,000
30,715
28,969
25,210

15,000 4.00
10,000
2.00
5,000
0 0.00
2017-18 2018-19 2019-20 2020-21 2021-22
Committed Exp Committed Exp (Budget Estimates) Committed Exp/GSDP (%)

Source: Finance Accounts of respective years

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 Chapter II - Finances of the State

As can be seen from above Chart, committed Expenditure showed increasing trend
during the last five years except during 2020-21. Committed expenditure remained
within the projected budget figures during the five year except during the year 2018-19
and 2019-20 it exceeded the budget estimates.
Percentage of committed and non-committed expenditure to revenue expenditure
during 2017-22 is given in Chart 2.14:
Chart 2.14: Share of Committed and Non-Committed Expenditure
(in per cent)

2021-22 32.02 8.19 9.96 8.75 41.08

2020-21 31.41 8.04 10.19 10.44 39.92

2019-20 29.62 6.77 9.03 15.63 38.95

2018-19 27.65 5.67 8.43 12.92 45.33

2017-18 23.45 5.51 6.98 8.90 55.16

0% 20% 40% 60% 80% 100%

Salary & wages Interest Pension Subsidies Non- Committed Expenditure

Source: Finance Accounts of the respective years

As can be seen from Chart 2.14 above, share of committed expenditure in total revenue
expenditure increased from 44.84 per cent in 2017-18 to 58.92 per cent in 2021-22.
Ratio of committed expenditure also increased to 55.48 per cent of revenue receipts in
2021-22 from 42.26 per cent in 2017-18. Further, non-committed expenditure
decreased from 55.16 per cent in 2017-18 to 41.08 per cent in 2021-22.
2.4.2.3 Un-discharged Liability under National Pension System
During 2021-22, expenditure on pension payments was `7,472.22 crore, out of which
`1,282.75 crore was incurred towards National Pension System (NPS) applicable to
employees recruited on or after 1 January 2005.
National Pension System (NPS)
The State Government employees recruited on or after 1 November 2004 are covered
under the National Pension System (NPS), which is a defined contributory pension
scheme. In terms of the scheme, the employee contributes 10 per cent of basic pay and
dearness allowance, which is matched by the State Government, and the entire amount
is transferred to the designated fund manager through the National Securities
Depository Limited (NSDL)/ Trustee Bank.
Deduction of contributions under New Pension System from the employees
commenced from March 2006 along with contribution of arrears for the period
December 2004 to February 2006. During 2021-22, receipts under the Public Accounts

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 State Finances Audit Report for the year ended 31 March 2022

- Major Head 8342 Other Deposits – (117) Defined Contribution Pension Scheme was
`1,296.61 crore5, out of which `1,291.00 crore was transferred to NSDL, resulting in
less transfer of amount i.e. `5.61 crore. As on 31 March 2022, `37.78 crore remained
in the Public Account, pending transfer to NSDL/Trustee Bank. Short transfer of `5.61
crore and previous balance of `32.17 crore resulted in avoidable liability of `37.78
crore to the State Government and created uncertainty in respect of benefit due to the
employees to that extent.
After the commencement of work of Regulation of Pension fund by Pension Fund
Regulatory Development Authority, the State Government contribution is debited to
Major Head 2071 and directly transferred to the Trusty Bank without routing it through
Major Head 8342-117. Against employee’s contribution of `1,286.67 crore, the State
Government contributed only `1,282.75 crore, resulting in short contribution of
`3.92 crore to Defined Contribution of Pension Scheme.

2.4.2.4 Financial assistance by the State Government to Local Bodies

and other Institutions
The quantum of financial assistance by way of grants and loans provided by the State
Government to Local Bodies and other institutions during last five years are given in
Table 2.18.
Table 2.18: Financial Assistance to Local Bodies and other Institutions
(` in crore)
Sl.
Financial Assistance to Institutions 2017-18 2018 -19 2019-20 2020-21 2021-22
No.
1 (A) Local Bodies
2 Urban Local Bodies 3,425.75 2,778.73 3,138.94 3,554.17 3,904.13
3 Panchayati Raj Institutions 10,899.36 6,905.17 6,006.83 4,421.79 4,345.60
4 Total (A) 14,325.11 9,683.90 9,145.77 7,975.96 8,249.73
5 (B) Others
Educational Institutions (Aided
6 Schools, Aided Colleges, 235.45 170.44 273.67 204.97 254.57
Universities, etc.)
7 Development Authorities 287.03 271.41 235.06 229.93 393.08
Co-operative & Other Institutions
8 10,155.72 13,255.70 10,499.70 12,555.37 13,241.09
and NGOs
9 Total (B) 10,638.20 13,697.55 11008.43 12,990.27 13,888.74
10 Total (A+B) 24,963.31 23,381.45 20,154.20 20,966.23 22,138.47
11 Revenue Expenditure 56,229.75 64,411.17 73,477.31 70,032.84 75,010.01
Assistance as percentage of
12 44.40 36.30 27.43 29.94 29.51
Revenue Expenditure
Source: Finance accounts of respective years
Financial assistance to Local Bodies and other Institutions has shown a decreasing trend
upto 2020-21 and increased by `1,172.24 crore from `20,966.23 crore in 2020-21 to

5
`1,286.67 crore pertains to employees contribution and `9.93 crore pertains to employee and employers
contribution of deputation employees.

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 Chapter II - Finances of the State

`22,138.47 crore in 2021-22. During 2021-22, Financial assistance to Local Bodies

increased by `273.77 crore over the previous year mainly due to more assistance
provided to Urban Local Bodies. Financial assistance to Local Bodies and other
Institutions by the State Government as percentage of Revenue Expenditure has
decreased from 44.40 per cent in 2017-18 to 29.51 per cent in 2021-22.
2.4.3 Capital Expenditure
Capital expenditure includes primarily expenditure on creation of fixed infrastructure
assets, such as buildings, roads, bridges, etc. Details of capital expenditure against the
budget estimates during the five-year period 2017-22 are given in Chart 2.15.
Chart 2.15: Capital expenditure in the State
(` in crore)
15,000 15.02% 16%
12,500 12.10% 12.24% 14%
11.41%
10.43% 12%
10,000 10%
14,453.83

13,839.35
7,500 8%

10,504.22
13,814.11
10,000.96

9,024.19
8,903.45

8,566.39
14,453.93

12,109.61 6%
5,000
4%
2,500 2%
0 0%
2017-18 2018-19 2019-20 2020-21 2021-22
Capex Budget Estimates Capex as a percentage of total expenditure

Source: Finance Accounts of the respective years

Capital expenditure increased during the last five years from `10,000.96 crore in
2017-18 to `10,504.22 crore in 2021-22. However, the State could not meet the budget
estimate on creation of assets from 2017-18 to 2021-22. During 2021-22, Capital
expenditure increased by 16.40 per cent (`1,480.03 crore) over the previous year
mainly due to increase in expenditure in Jal Jeevan Mission Yojana, and State Highway
Road Construction works.
During 2021-22, 42 per cent of total capital expenditure (`10,504.22 crore) was
incurred on Roads and Bridges (`4,415.62 crore) followed by 13.56 per cent on water
supply and sanitation (`1,424.47 crore).

2.4.3.1 Major changes in Capital Expenditure

Table 2.19 highlights the cases of significant increase or decrease in various heads of
account in capital expenditure during 2021-22 vis-à-vis the previous year.

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State Finances Audit Report for the year ended 31 March 2022

Table 2.19: Capital Expenditure during 2021-22 compared to 2020-21

(` in crore)
Sl. Increase (+)/
Major Heads of Accounts 2020-21 2021-22
No. Decrease (-)
1 5054-Capital Outlay on Roads and Bridges 3,351.28 4,415.62 1,064.34
2 4215-Capital Outlay on Water Supply and Sanitation 907.93 1,424.47 516.54
3 4801-Capital Outlay on Power Projects 52.11 327.95 275.84
4 5275-Capital Outlay on Other Communication Services 70.00 200.00 130.00
5 4059-Capital Outlay on Public Works 400.11 247.43 (-)152.68
6 4210-Capital Outlay on Medical and Public Health 511.71 324.70 (-)187.01
4515-Capital Outlay on other Rural Development
7 350.57 271.28 (-)79.29
Programmes
Source: Finance Accounts of 2020-21 and 2021-22
The increase in expenditure on Roads and Bridges was mainly due to administrative
approval of new work under State Highways Bridges and Road works projects. Increase
in expenditure on Water Supply and Sanitation was mainly due to increase in
expenditure under Jal Jeevan Mission Yojana and Water Augmentation Scheme of
Urban Bodies. Further, increase in expenditure on Power Projects was mainly due to
increase in Mukhyamantri Mazra Tola Vidhyutikaran Yojna and increase in expenditure
on Other Communication Services was due to payment of pending bills.
During 2021-22, decrease in expenditure under the Major Head 4210-Capital outlay on
Medical and Public Health and under the Major Head 4515- Capital outlay on other
Rural Development programmes was due to delay in administrative approval of work.
Decrease in expenditure on Public Works was mainly due to decrease in expenditure on
Infrastructure Development Fund and Environment Fund.
2.4.3.2 Quality of Capital Expenditure
This section presents an analysis of investments and other capital expenditure
undertaken by the Government as of 31 March 2022.
Quality of investment in Companies, Corporations and other Bodies
Capital Expenditure in companies, corporations and other bodies, which are loss
making or where net worth is completely eroded, is not sustainable.
Investments made and loans given to companies, corporations, and co-operatives which
are loss making and those whose net worth is completely eroded, affect the quality of
capital expenditure. Return on investment in share capital invested in PSUs and history
of repayment of loans given to various bodies are important determinants of quality of
capital expenditure. Issues related to quality of investment in PSUs viz. Investment in
PSUs, Rate of Return on Investment, Erosion of Net Worth, Dividend Payout, Return
on Capital Employed etc., have been discussed in detail in Chapter V of the Report.
Investment and Returns
As per the Finance Accounts 2021-22, the Government of Chhattisgarh had invested
`7,320.19 crore in 10 Statutory Corporations, 28 Government Companies, 22 Joint

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 Chapter II - Finances of the State

Stock Companies, two Rural Banks and 1460 Co-operative Institutions and local bodies
in the State as of 31 March 2022. The State Government earned a return of `3.64 crore
on these investments during 2021-22. Year-wise details of investment by the
Government of Chhattisgarh over the five-year period 2017-18 to 2021-22 are as
follows:
Table 2.20: Details of Investment and Return on Investment
(` in crore)
Sl.
Investment/Return/Cost of borrowings 2017-18 2018-19 2019-20 2020-21 2021-22
No.
Statutory Corporations 37.82 86.92 87.88 88.34 89.69
1
(No. of entities) (02) (10) (10) (10) (10)
Government Companies 6,459.45 6,683.34 6,683.34 6,683.34 6,733.34
2
(No. of entities) (13) (28) (28) (28) (28)
Joint Stock Companies 144.80 145.21 145.21 145.21 156.93
3
(No. of entities) (05) (22) (22) (22) (22)
Rural Banks 25.15 25.15 25.15 25.15 25.15
4
(No. of entities) (01) (02) (02) (02) (02)
Co-operative Institutions and Local
199.15 327.42 324.21 319.26 315.08
5 Bodies
(1523) (1523) (1460) (1460) (1460)
(No. of entities)
6 Total Investment 6,866.37 7,268.05 7,265.79 7,261.30 7,320.19
7 Investment at the end of the year 6,866.37 7,268.05 7,265.79 7,261.30 7,320.19
8 Return on investment 4.80 1.49 2.39 2.29 3.64
9 Return on investment (per cent) 0.07 0.02 0.03 0.03 0.05
Average rate of interest on Government
10 6.38 6.10 6.83 6.57 6.40
borrowing (per cent)
Difference between interest rate and
11 6.31 6.08 6.80 6.54 6.35
return (per cent)
Loss due to difference between interest
12 433.27 442.15 493.86 474.89 464.85
rate of market borrowing and returns
Figures in the bracket shows the number of entities
Source: Finance Accounts of respective years
During 2021-22, the return on investment was `3.64 crore (0.05 per cent). However,
the Government paid interest on its borrowing at an average rate of 6.40 per cent during
the same period. Continued use of borrowed funds to fund investment which do not
have sufficient financial returns will lead to an unsustainable financial position.
Loans and Advances by State Government
In addition to investments in Co-operative societies, Corporations and Companies, the
State Government has also provided loans and advances to many
institutions/organisations.
Table 2.21 presents the outstanding loans and advances as on 31 March 2022, along
with interest receipts vis-à-vis interest payments during the five-year period 2017-18
to 2021-22.

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 State Finances Audit Report for the year ended 31 March 2022

Table 2.21: Loans disbursed and recovered during 2017-18 to 2021-22

(` in crore)
Sl.
Loans disbursed and recovered 2017-18 2018-19 2019-20 2020-21 2021-22
No.
1 Opening balance of loans outstanding 941.98 1,519.63 1,597.75 1,397.08 1,173.866
2 Amount advanced during the year 368.76 240.44 56.11 50.50 324.06
3 Amount recovered during the year 138.59 162.32 256.78 104.8 88.06
Closing Balance of loans
4 1,172.16 1,597.75 1,397.08 1,342.78 1,409.86
outstanding
5 Net addition 230.17 78.12 (-)200.67 (-)54.30 236.00
6Interest received 27.61 28.32 1.67 6.88 3.27
Interest rate on Loans and Advances
7 2.17 2.04 0.11 0.50 0.24
given by the Government
Average rate of Interest paid on the
8 outstanding borrowings of the 6.38 6.10 6.83 6.57 6.40
Government
Difference between rate of interest
9 4.21 4.06 6.72 6.07 6.16
paid and interest received (per cent)
Source: Finance Accounts of Respective years

The loans disbursed during the year have increased as compared to the previous year.
Interest received by the State Government against loan given was `3.27 crore. At the
end of March 2022, the Government had outstanding loans and advances of `1,409.86
crore, out of which `324.61 crore pertains to Urban Local Bodies, `213.01 crore
pertains to Government companies and `427.43 crore pertains to co-operative
societies/bodies.
Further, the State Government made fresh loans and advances during the year to the
following sugar mills against which the repayment of earlier loans and interest is in
arrears.
Table 2.22: Details of loans and advances to sugar mills during 2021-22
(` in crore)
Year of Amount of Re- Total loans Interest
Amount arrear as
previous principal payment outstanding
Sl. of loans on
Name Loans outstanding made as on
No during 31 March
outstanding as of 1st April during 31st March
this year 2022
Since 2021 the year 2022
Loh Purush Sardar
1 Vallabh Bhai Patel Sugar 2017-18 95.00 13.00 2.00 106.00 31.15
Mill Limited
Bhoramdev Co-operative
2 2016-17 77.00 13.00 2.00 88.00 13.49
Sugar Mill Limited
Mahamaya Co- operative
3 2010-11 103.67 17.00 10.00 110.67 26.73
Sugar Mill, Limited
Danteshwari maiya Co-
4 operative Sugar Mill , 2011-12 74.83 7.00 0.25 81.58 34.59
Limited
Source: Finance Accounts 2021-22

6
Reduced by `168.92 crore vide State Government letter No. 523/R-110/2020/13/2 dated 23-02-2022 due to reconciliation of
Loan balance between the figures of Finance Account and Account of Power Company. `168.92 crore includes `136.78 crore of
loan adjusted as Share Capital of the State Government in 2017-18 and `32.14 crore of excess payment of Interest by Chhattisgarh
State Electricity Board during 2004-05 and 2005-06 adjusted as repayment of loan.

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 Chapter II - Finances of the State

2.4.3.3 Capital blocked in incomplete projects

An assessment of trends in capital blocked in incomplete capital works would also
indicate quality of capital expenditure. Blocking of funds on incomplete projects/ works
impinges negatively on the quality of expenditure and deprives the State of the intended
benefits for prolonged periods. Further, the funds borrowed for implementation of these
projects during the respective years leads to extra burden in terms of servicing of debt
and interest liabilities.
A total of 357 projects with estimated cost `15,638.78 crore were sanctioned. Out of
which 148 projects were identified which were to be completed on or before 31 March
2022 and costing `10 crore and above. Year wise and Department wise details of
incomplete projects are shown in Table 2.23 and Table 2.24 respectively.
Table 2.23: Age profile of incomplete projects as on 31 March 2022
(` in crore)
Sl. No. of Incomplete Expenditure
Year Estimated Cost
No. Projects (As on 31 March 2022)
1 Up to 2011 12 291.21 384.87
2 2011-12 16 468.53 973.79
3 2012-13 8 322.86 544.95
4 2013-14 13 939.35 1,146.43
5 2014-15 14 315.74 281.04
6 2015-16 21 584.90 682.06
7 2016-17 11 330.71 312.19
8 2017-18 23 504.14 609.87
9 2018-19 12 366.72 339.26
10 2019-20 11 157.33 182.11
11 2020-21 5 323.34 66.90
12 2021-22 3 64.84 10.05
Grand Total 148 4,667.24 5,493.35
Source: Finance Accounts
Table 2.24: Department-wise profile of incomplete projects
(` in crore)
49 Incomplete Projects whose cost were Cumulative
revised expenditure
Number of
Initial of all 148
Sl. in- Estimated
Departments estimated cost Revised Cost incomplete
No. complete cost
of 49 projects cost of 49 overrun in projects as
projects
projects 49 projects on 31
No. Amount March 2022
1 Public Works 10 417.43 2 151.61 551.20 399.59 514.37
Water
2 138 4,249.81 47 1,761.68 3,617.75 1,856.07 4,978.98
Resources
Total 148 4,667.24 49 1,913.29 4,168.95 2,255.66 5,493.35
Source: Finance Accounts 2021-22
Out of 148 incomplete projects (costing more than `10 crore) with estimated cost of
`4,667.24 crore, the State Government has revised the cost of 49 incomplete projects
with cost overrun of `2,255.66 crore. Delay in completion of project works increases
the risk of cost escalation. Since the State Government had not evaluated the cost of 99
incomplete projects, the actual amount of expenditure to be incurred by the State could

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State Finances Audit Report for the year ended 31 March 2022

not be ascertained, and due to delay in completion of these projects, the intended
benefits from the projects could not be achieved.
2.4.4 Expenditure priorities
Enhancing human development levels require the States to step up their expenditure on
key social services like education, health etc. Low fiscal priority (ratio of expenditure
under a category to aggregate expenditure) is attached to a particular sector, if the
allocation is below the respective national average. The higher the ratio of these
components to total expenditure, the quality of expenditure is considered to be better.
The fiscal priorities of the State Government with regard to development expenditure,
social services expenditure and capital expenditure during 2017-18 and 2021-22 are
shown in Table 2.25 below:
Table 2.25: Expenditure priority of the State with regard to Health, Education
and Capital expenditure
(in per cent)
Sl. Education/ Health/
TE/GSDP SSE/TE ESE/TE DE/TE CE/TE
No. TE TE
1 Average (Ratio) 2017-18 of
General Category
2 16.13 36.65 31.17 67.82 15.56 15.17 5.09
States*
3 Chhattisgarh State 23.59 40.72 37.15 77.87 15.02 18.64 6.02
4 Average (Ratio) 2021-22 of
General Category
5 15.84 38.31 28.44 66.74 14.41 14.66 6.20
States*
6 Chhattisgarh State 21.46 36.56 36.83 73.39 12.24 18.54 7.63
TE: Total Expenditure, SSE: Social sector Expenditure, ESE: Economic Sector Expenditure, DE:
Development Expenditure, CE: Capital Expenditure, Development Expenditure includes Development
Revenue Expenditure, Development Capital Expenditure, development Loan and Advances disbursed.
*States other than NE and Himalayan States
Source: Data provided by Economic Advisor

• As a percentage of Gross State Domestic Product, the Total Expenditure of

Chhattisgarh was higher than the average of General Category States.
• The proportion of expenditure on Development, especially on health and
education, to the Total expenditure of Chhattisgarh has been higher than the
average of other General States.
• Allocative priority accorded to Social sector expenditure by the State
Government declined from 40.72 per cent (2017-18) to 36.56 per cent (2021-
22) and it was less than the average of general category states in the current year.
Significant shortfall in expenditure vis-à-vis budget estimates 2021-22 was
noticed under the Major Heads 2202 - General Education (₹2,069 crore), 2215-
Water Supply and sanitation (₹ 488 crore) and 2235-Social Security and Welfare
(₹ 281 crore) under Pradhan Mantri Matru Vandana Yojana etc.
• The allocative priority accorded to capital expenditure by the State Government
was less than the average of general category States in 2021-22.

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 Chapter II - Finances of the State

2.4.5 Object head wise expenditure

Finance Accounts depict transactions only up to the Minor Head level. Object head wise
expenditure gives information about the object/ purpose of the expenditure. The per cent
wise object head expenditure w.r.t total expenditure for 2021-22 is shown in Chart 2.16
below:
Chart 2.16: Object head wise expenditure
(in per cent)
Materials and Pension and Retirement
Construction Works , 4.61
Supplies , 3.67 benefits, 8.71

Major Construction
Works , 4.11 Salaries and
Allowances , 26.47

Inter Account
Grants-in-Aid, 25.92 Transactions , 1.86

Creation of Capital
Minor Construction Assets, 2.60
Works, 1.21
Interest / Loan Financial Assistance , 7.68
Repayments , 7.55 Others, 5.61
Source: Finance Accounts 2021-22
As can be seen from the above chart, the expenditure under object heads Salaries &
Allowances, Grants-in-Aid and Pension & Retirement Benefits constituted 61.10 per
cent of overall expenditure `85,514.23 crore (Excludes expenditure on ‘Loan and
Advances’ and ‘Inter State Settlement’) of the States. Besides, Financial Assistance,
Interest/Loan repayments and Construction Works constituted 7.68 per cent, 7.55 per
cent and 4.61 per cent of the expenditure respectively.
A drill down view of budgetary allocation and extent of expenditure (above `1,000
crore) incurred on the actual items at the Object Head level is given in Table 2.26
below:
Table 2.26: Object head wise expenditure (where the expenditure is `1000 crore
and above) vis-à-vis budget authorisation
(` in crore)
Sl. Original Budget Utilisation
Head Expenditure
No. Estimate Percentage
1 14- Grants-in-Aid 25,580.38 22,163.89 86.64
2 01- Salaries and Allowances 25,121.65 22,639.42 90.12
3 12- Pension and Retirement benefits 6,580.76 7,450.26 113.21
4 13- Financial Assistance 7,479.68 6,565.30 87.78
5 35- Interest / Loan Repayments 6,913.07 6,458.51 93.42
6 97- Construction Works 5,946.02 3,940.15 66.27
7 26- Major Construction Works 4,698.95 3,516.25 74.83
8 25- Materials and Supplies 3,174.04 3,142.14 98.99
9 45- Creation of Capital Assets 2,491.83 2,227.04 89.37
10 37- Inter Account Transactions 2,129.14 1,587.42 74.56
11 27- Minor Construction Works 1369.67 1,031.70 75.32
Total 91,485.19 80,722.08 88.24
Source: Finance Accounts 2021-22

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As can be seen from the above Table, out of a total budgetary allocation of `91,485.19
crore under 11 object heads, the actual expenditure during 2021-22 was only
`80,722.08 crore (88.24 per cent).

2.5 Public Account

Receipts and Disbursements in respect of certain transactions such as Small Savings,
Provident Funds, Reserve Funds, Deposits, Suspense, Remittances etc., which do not
form part of the Consolidated Fund, are kept in the Public Account set up under Article
266(2) of the Constitution and are not subject to vote by the State Legislature. The
Government acts as a banker in respect of these. The balance after disbursements
during the year is the fund available with the Government for use for various purposes.
2.5.1 Net Public Account Balances
The status of receipts and disbursement under Public Account are shown in Statement
21 of the Finance Accounts. Component-wise net balances in the Public Account of
the State as of 31 March of respective years are shown in Table 2.27 below:
Table 2.27: Component-wise net balances in Public Account as of 31 March of
the year
(` in crore)
Sl.
Sector Sub Sector 2017-18 2018-19 2019-20 2020-21 2021-22
No.
I. Small National Small Savings
Savings, Fund, State Provident
1 (+)6,077.89 (+)6,832.41 (+)7,617.67 (+)8,021.40 (+)8,020.50
Provident Funds and Other
Fund, etc. Accounts
(a) Reserve Funds
(+)202.83 (+)400.70 (+)1,101.77 (+)614.84 (+)769.36
J. Reserve bearing Interest
2
Funds (b) Reserve Funds not
(+)1,387.39 (+)1,254.83 (+)1,363.00 (+)1,384.75 (+)1,683.77
bearing Interest
(a) Deposits bearing
(+)49.69 (+)42.90 (+)37.29 (+)33.16 (+)28.27
Interest
K. Deposits (b) Deposits not bearing
3 (+)6,189.04 (+)5,964.44 (+)5,446.01 (+)5,951.96 (+)5,758.23
and Advances Interest
(c) Advances (-)1.74 (-)1.75 (-)1.84 (-)1.84 (-)7.35
(a) Suspense (+)57.24 (+)35.96 (+)29.66 (+)20.08 (+)84.64
(b) Other Accounts (-)4,022.35 (-)9,711.03 (-)5,199.46 (-)3,344.86 (-)3,299.78
L. Suspense
4 and (c) Accounts with
Miscellaneous Governments of Foreign 0.00 0.00 0.00 0.00 0.00
Countries
(d) Miscellaneous 0.00 0.00 0.00 0.00 0.00
(a) Money Orders, and
(-)171.17 (-)297.90 (-)204.48 (-)240.97 (-)245.09
M. other Remittances
5
Remittances (b) Inter- Governmental
(-)65.49 (+)61.19 (-)73.82 (-)88.41 (-)91.13
Adjustment Account
Total 9,703.33 4,581.75 10,115.80 12,350.11 12,701.42
Source: Finance Accounts of respective years
Note: (+) signifies Credit Balance; (-) signifies Debit Balance

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 Chapter II - Finances of the State

The net balances in Public Account increased by `351.31 crore in 2021-22 over the
previous year, mainly due to increase in Reserve Funds bearing interest by `154.52
crore, Reserve Funds not bearing interest by `299.02 crore which was counter balanced
by decrease in Deposits not bearing Interest by `193.73 crore.
The yearly changes in composition of balances in Public Account over the last five year
period 2017-22 are given in Chart 2.17:
Chart 2.17: Yearly changes in composition of Public Account balances
(` in crore)
Small Savings,
Provident Fund, Deposits and Suspense and
etc. Reserve Funds Advances Miscellaneous Remittances
6000
5856.20

5000

4000

3000

2000
785.26
754.51
640.61

501.82
446.73
403.73

-524.14
164.79

120.95
-516.38
-477.93

80.79
70.92
65.50
1000

0
-0.90

-7.26

-6.83
-12.33
-19.58
-50.73

-51.08
-122.43
-204.13
-231.39

-1000

2017-18 2018-19 2019-20 2020-21 2021-22

Source: Finance Accounts of respective years
Note: Yearly changes depicted in the chart above excludes changes in Major Head-8671 Departmental
Balances, 8673- Cash Balance Investment Account and Reserve Funds Investment Accounts.

During 2019-20, high change in Reserve Fund was due to receipt of `5,791.70 crore
under Compensatory Afforestation Funds (CAMPA) transferred by Government of
India from National Compensatory Afforestation Deposit and interest of `81.25 crore
on investment of CAMPA funds.
2.5.2 Reserve Funds
Reserve Funds are created for specific and defined purposes under the Public Account
of the State Government. These funds are met from contributions or grants from the
Consolidated Fund of the State.
There were 17 Reserve Funds earmarked for specific purposes in the State with effect
from 2000-2001 (since the formation of the State), out of which, 14 funds were operative
and three funds were in-operative as of 31 March 2022. The gross balance at the end of
31 March 2022 in these funds was `9,627.40 crore, out of which `7,174.27 crore (74.52
per cent) was invested in Government of India Securities and Treasury Bills (`7,020.35
crore) and Share Capital of Joint Venture Companies (`153.92 crore).

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State Finances Audit Report for the year ended 31 March 2022

Transfers into reserve funds and disbursement therefrom are affected through debit and
credit entries under the appropriate revenue and expenditure heads under the
Consolidated Fund. These represent actual cash transfers only if they impact the
Reserve Bank Deposits either directly or by way of investment. Since there was no
actual cash outflow, the transactions depicted by GoCG against reserve fund are only
book entries to the extent of amount not invested, which violate the spirit underlying
the creation and operation of reserve funds.
2.5.2.1 Consolidated Sinking Fund
Following the recommendations of the 12th Finance Commission, the State has created
a Consolidated Sinking Fund (CSF) for amortisation of all loans including loans from
banks, liabilities on account of National Small Savings Funds, etc. Further, as per
recommendation of the 12th Finance Commission, a minimum annual contribution of
0.50 per cent of outstanding liabilities at the beginning of the year was required to be
transferred to the fund.
During 2021-22, GoCG transferred `300.00 crore to the Consolidated Sinking Fund
against the minimum requirement of `463.57 crore (representing 0.5 per cent of
outstanding liabilities of `92,714.22 crore as on 31 March 2021). The short contribution
of `163.57 crore to the Consolidated Sinking Fund resulted in overstatement of
Revenue Surplus and understatement of Fiscal deficit to that extent. As on 31 March
2022, an amount of `2,886.94 crore was lying in the Fund, and the entire amount was
invested in Government of India securities.
2.5.2.2 State Disaster Risk Management Fund
Fifteenth Finance Commission has recommended the creation of fund for disaster
mitigation along with disaster response, which will be together called as State Disaster
Risk Management Fund (SDRMF). Out of the total amount recommended for SDRMF,
the share of SDRF shall be 80 per cent and the share of SDMF 20 per cent. The SDRF
had an opening balance of `103.11 crore as of 01 April 2021. During the year, the State
Government received `345.60 crore as Central Government Share and the
corresponding state share of `115.20 crore which was to be transferred to the fund. The
State Government transferred whole amount of `460.80 crore to the Fund under Major
Head 8121-122 SDRF. Expenditure of `360.54 crore was made from SDRF during
2021-22. Thus, the SDRF had a closing balance of `205.527 crore as on 31 March 2022.
No amount was received from the Central Government towards NDRF.
Further, the XVFC recommended to create the State Disaster Mitigation Fund (SDMF)
for local level and community-based interventions which reduce the risks and promote
environment-friendly settlements and livelihood practices. The Government of India
and the State Government are required to contribute to the fund in the proportion of
75:25 respectively. The SDMF had an opening balance of ₹ 57.60 crore as on 1 April

7
Including `2.15 crore of Treasury deposit.

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 Chapter II - Finances of the State

2021. During 2021-22, the State Government received `86.40 crore as the Central
share. Thus, the State Government had to transfer `115.20 crore to SDMF (`86.40 crore
as Central Share along with `28.80 crore as State Share). However, the State
Government transferred only `57.60 crore (`43.20 crore and `14.40 crore of Central
Share and State Share respectively) resulting in the closing balance of `115.668 crore
as of 31 March 2022.
Details of expenditure charged to SDRF are given below in Table 2.28:
Table 2.28: Details of expenditure charged to SDRF
(` in crore)
Sl. Expenditure during
Head Minor Head of Account
No. 2021-22
1 2245- Relief on Account of Natural Calamities
2 01-Drought
3 101 Gratuitous Relief 0.30
4 282 Public Health 0.00
5 02-Floods, Cyclones, etc.
6 101 Gratuitous Relief 3.03
7 106 Repairs and Restoration of Damaged Roads and Bridges 0.00
Assistance for repair and restoration of damaged Water
8 110 0.03
Supply, Drainage and Sewerage Works
9 111 Ex-gratia Payments to bereaved families 18.92
10 112 Evacuation of population 0.54
11 113 Assistance for repair and construction of Houses 7.84
12 114 Assistance to Farmers for purchase of Agriculture Input 20.21
Assistance to Farmers for repairs of damaged tube wells
13 116 0.02
and Pump sets
14 117 Assistance to Farmers for purchase of livestock 6.87
15 80-General
16 101 Centre for Training to Disaster Preparedness 74.45
Management of Natural Disasters, Contingency Plans in
17 102 0.00
disaster prone areas
18 800 Other Expenditure 228.58
19 Total SDRF Expenditure 360.79
20 05-State Disaster Response Fund
21 901 Deduct- Amount met from State Disaster Response Fund (-)360.54
Source: Finance Accounts 2021-22

2.5.2.3 Guarantee Redemption Fund

As per the recommendation of the 12th Finance commission, the Government of
Chhattisgarh was required to constitute a Guarantee Redemption Fund (GRF) with
minimum annual contribution of 0.50 per cent of outstanding guarantee at the beginning
of the year. Accordingly, the State Government was required to create a GRF and
transfer `99.18 crore to the Fund in 2021-22. Contrary to the Finance Commission

8
Including 0.46 crore of interest received

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State Finances Audit Report for the year ended 31 March 2022

recommendations, the State Government has decided not to form the GRF as most of
guarantees sanctioned by the State Government were of “low and medium risk” and
none of the institutions had defaulted in repayment of loan against the guarantees
sanctioned shifting the liability/burden to the State Government since the formation of
the State.

2.6 Debt management

Debt management is the process of establishing and executing a strategy for managing
the Government’s debt in order to raise the required amount of funding, achieve its risk
and cost objectives, and to meet any other sovereign debt management goals that the
Government may have set through enactment or any other annual budget
announcements. The trend of overall Debt between 2017-18 and 2021-22 is shown in
Chart 2.18 below:
Chart 2.18: Trend of overall Debt during 2017-18 and 2021-22
(` in crore)
25.44 30
90,000
22.84 22.77 25
75,000 20.37
18.74
20

99,172.89
60,000
92,714.22
78,712.46

15
66,749.51

45,000
52,907.08

30,000 10

15,000 5

0 0
2017-18 2018-19 2019-20 2020-21 2021-22

Outstanding Overall Debt As per cent of GSDP

Source: Finance Accounts of respective years

Note: Debt to GSDP ratio has been calculated after excluding the amount of back to back loan `3,109
crore and `8,074.15 crore from the total outstanding debt `92,714.22 crore and `99,172.89 crore for the
year 2020-21 and 2021-22 respectively.

2.6.1 Debt profile: Components

As per Chhattisgarh FRBM act, Public Debt comprises internal debt of the State
Government and Loans and Advances from Central Government. Internal debt consists
of Market Loans, Ways and Means advances from RBI, Compensation and other
Bonds, Loans from Financial Institutions and Special Securities issued to National
Small Savings Fund of Central Government.
The details relating to total debt received, repayment of debt, ratio of debt to GSDP and
the actual quantum of debt available to the State during the five-year period 2017-22
are given in Table 2.29:

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 Chapter II - Finances of the State

Table 2.29: Component wise debt trends

(` in crore)
Sl.
Particular 2017-18 2018-19 2019-20 2020-21 2021-22
No.
1 Outstanding Overall Debt 52,907.08 66,749.51 78,712.46 92,714.22 99,172.89
Public Internal Debt 36,690.44 49,553.83 60,382.67 70,538.81 71,186.62
2
Debt Loans from GoI 2,339.57 2,700.39 2,764.05 6,169.30 11,726.15
3 Liabilities on Public Account 13,877.07 14,495.29 15,565.74 16,006.11 16,260.12
Rate of growth of outstanding
4 19.54 26.16 17.92 17.79 6.97
overall debt (per cent)
Gross State Domestic Product
5 2,82,266 3,27,693 3,44,571 3,52,161 4,00,061
(GSDP)
6 Rate of growth of GSDP (per cent) 7.41 16.09 5.15 2.20 13.60
9
7 Debt/GSDP (per cent) 18.74 20.37 22.84 25.44 22.7710
8 Total Debt Receipts11 15,851.32 20,736.52 31,921.72 33,423.87 28,164.36
9 Total Debt Repayments 7,202.52 6,923.87 19,958.77 19,422.11 21,657.37
10 Total Debt Available 8,648.80 13,812.65 11,962.95 14,001.76 6,506.99
Debt Repayments/Debt Receipts
11 45.44 33.39 62.52 58.11 76.90
(Per cent)
Source: Finance Accounts of respective years
The amount of outstanding overall debt shown above included back-to-back loan of
`8,074.15 crore (`3,109.00 crore during 2020-21 and `4,965.15 crore in 2021-22)
provided in lieu of shortfall in GST Compensation as debt receipt to the State
Government with no repayment liability for the State. The effective outstanding overall
debt after excluding the back-to-back loan would be `91,098.74 crore as on March
2022. The rate of growth of outstanding overall debt decreased from 17.79 per cent in
2020-21 to 6.97 per cent in 2021-22. During 2021-22, total debt receipts decreased by
`5,259.51crore (15.74 per cent) and total debt repayment increased by `2,235.26 crore
(11.51 per cent) as compared to previous year. The rate of growth of outstanding overall
debt in all the five years exceeded the rate of growth of GSDP, except for 2021-22
where rate of growth of GSDP was more than rate of growth of outstanding overall
debt.
The State Government has net outstanding off-budget liabilities/borrowings of
`3,872.80 crore towards various Financial Institutions in addition to the budgeted
liabilities of `99,172.89 crore as on 31 March 2022. The State Government has not
disclosed these borrowings as required under FRBM disclosures alongwith the budget
document.

9
Debt to GSDP ratio has been calculated on the total debt of `89,605.22 crore after excluding the amount
of back to back loan (`3,109 crore) from the total outstanding debt (`92,714.22 crore).
10
Debt to GSDP ratio has been calculated on the total debt of `91,098.74 crore after excluding the amount
of back-to-back loan of `8,074.15 crore (`3,109.00 crore in 2020-21 and `4,965.15 crore in 2021-22)
from the total outstanding debt (`99,172.89 crore).
11
Including Public Account Liabilities

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State Finances Audit Report for the year ended 31 March 2022

Component-wise break-up of debt is shown below in Chart 2.19:

Chart 2.19: Break up of Outstanding Overall Debt at the end of 2021-22
( in crore)

Public Account Overall De bt: 99,172.89

Liabilities,
16,260.12, 16%

Loans from GoI, Internal Debt,

11,726.15, 12% 71,186.62, 72%

Internal Debt Loans from GoI Public Account Liabilities

Source: Finance Accounts 2021-22

Internal debt (`71,186.62 crore), which is primarily market borrowings through issue
of State Development Loans (SDLs), accounts for 72 per cent of the total outstanding
debt.
Chart 2.20 depicts Internal Debt taken by the State Government and repayment for the
same period.
Chart 2.20: Internal debt taken vis-a-vis repaid
( in crore)

20,000
19,308.36

17,961.37

16,000

8,625.64
8,479.52

7,805.23
13,816.66

12,000

8,000
9,321.77
9,187.89

953.27
827.74

4,000

0
2017-18 2018-19 2019-20 2020-21 2021-22

Internal Debt Taken Internal Debt Repaid

Source: Finance Accounts of the respective years

During 2017-22, the internal debt receipts under the overall debt of the State
Government increased by `133.88 crore from `9,187.89 crore in 2017-18 to `9,321.77
crore in 2021-22. However, it decreased by `8,639.60 crore in current year as compared
to previous year. During 2021-22, the State Government utilised 92.53 per cent of its
internal debt receipts in repayment of previous internal debt, resultantly only 7.45 per
cent was available for expenditure. This availability was lowest (7.45 per cent) in 2021-
22 and highest (93.10 per cent) in 2018-19.

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 Chapter II - Finances of the State

2.6.2 Components of fiscal deficit and its financing pattern

Fiscal Deficit represents the total financing that the State requires (predominantly by
drawing on its cash and investment balances with the RBI and by borrowing) to meet
the excess of the Revenue and Capital Expenditure (including loans and advances) over
Revenue and Non-debt Receipts. Financing pattern of fiscal deficit is reflected in
Table 2.30.
Table 2.30: Components of fiscal deficit and its financing pattern
(` in crore)
Sl.
Particulars 2017-18 2018-19 2019-20 2020-21 2021-22
No.
Composition of Fiscal Deficit
1 Revenue Deficit (-)/ Surplus (+) 3,417.32 683.76 (-)9,608.61 (-)6,856.66 4,642.02
2 Net Capital Expenditure (-)9,997.64 (-)8,898.19 (-)8,561.69 (-)9,019.34 (-)10,499.33
12
3 Net Loans and Advances (-)230.00 (-)77.80 200.75 53.62 (-)235.79
Total (-)6,810.32 (-)82,92.23 (-)17,969.55 (-)15,822.38 (-)6,093.10
Financing pattern of Fiscal Deficit
1 Market borrowings 8,100.00 12,899.99 10,980.00 10,500.00 999.99
2 Loans from GOI 292.41 360.82 63.66 3,405.25 5,556.85
3 Special securities issued to NSSF (-)431.13 (-)443.74 (-)455.88 (-)455.88 (-)455.88
4 Loans from financial institutions 691.28 407.14 304.72 112.02 239.03
5 Small Savings, PF etc. 640.61 754.51 785.26 403.73 (-)0.90
6 Deposits and Advances 120.95 (-)231.39 (-)524.14 501.82 (-)204.13
7 Suspense and Miscellaneous (-)1,611.16 (-)5,709.95 4,505.27 1,845.02 109.64
8 Remittances 70.92 (-)122.43 80.79 (-)51.08 (-)6.83
9 Reserve Fund (-)765.14 60.4 814.16 (-)465.18 453.53
10 Compensation and Other Bonds 0.00 0.00 0.00 0.00 (-)87.01
11 Overall Deficit 7,108.74 7,975.35 16,553.84 15,795.70 6,604.29
(-)Increase/(+)Decrease in cash
12 (-)298.42 (+)316.88 (+)1,415.71 (+)26.68 (-)511.19
balance
Gross Fiscal Deficit 6,810.32 8,292.23 17,969.55 15,822.38 6,093.10
Source: Finance Accounts of respective years

During 2021-22, Loans and Advances from the Central Government (`5,556.85 crore)
raised by the State Government contributed to finance a major portion of fiscal deficit
and its share in financing fiscal deficit was 91.20 per cent.
Receipts and Disbursements under different components financing the Fiscal Deficit are
shown in Table 2.31:

12
Net loans and advances including inter-State settlement

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State Finances Audit Report for the year ended 31 March 2022

Table 2.31: Receipts and Disbursements under components financing

the fiscal deficit
(` in crore)
Sl. No. Particulars Receipt Disbursement Net
1 Market Borrowings 3,999.99 3,000.00 999.99
2 Loans from GOI 5,776.51 219.66 5,556.85
3 Special Securities issued to NSSF 0.00 455.88 (-)455.88
4 Loans from Financial Institutions 1,104.27 865.24 239.03
5 Compensation and Other Bonds 0.00 87.01 (-)87.01
6 Small Savings, PF, etc. 1,648.18 1,649.08 (-)0.90
7 Deposits and Advances 4,226.54 4,430.67 (-)204.13
8 Suspense and Miscellaneous 1,45,828.19 1,45,718.55 109.64
9 Remittances 8,877.41 8,884.24 (-)6.83
10 Reserve Fund 7,779.21 7,325.68 453.53
11 Contingency fund 0.00 0.00 0.00
12 Overall Deficit 1,79,240.30 1,72,636.01 6,604.29
13 Increase/Decrease in cash balance 0.00 511.19 (-)511.19
14 Gross Fiscal Deficit 1,79,240.30 1,73,147.20 6,093.10
Source: Finance Accounts 2021-22

2.6.3 Debt Profile: Maturity and Repayment

Debt maturity and repayment profile indicates commitment on the part of the
Government for debt repayment or debt servicing. Table 2.32 below shows the debt
maturity profile of the State.
Table 2.32: Maturity profile of repayment of State debt
(` in crore)
Loans & Advances Percentage
Sl. Period of Internal
from Central Total (w.r.t.
No. repayment (Years) Debt
Government public debt)
1 0 to 1 5,652.58 354.80 6,007.38 7.24
2 1 to 3 16,250.73 497.59 16,748.32 20.20
3 3 to 5 20,980.66 373.85 21,354.51 25.76
4 5 to 7 19,426.37 363.19 19,789.56 23.87
5 7 and above 8,720.30 2,061.14 10,781.44 13.00
6 Others13 155.97 8,075.58 8,231.55 9.93
Total 71,186.62 11,726.15 82,912.77 100.00
Source: Finance Accounts 2021-22
The maturity profile of the State debt as on 31 March 2022 indicates that the State has
to pay 77.07 per cent of the debt within the next seven years.

2.7 Debt Sustainability Analysis (DSA)

Debt sustainability is defined as the ability of the State to service its debt now and in
future. Apart from the magnitude of the debt of the Government, it is important to

13
Details of maturity year not available

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 Chapter II - Finances of the State

analyse the various parameters that determine the debt sustainability of the State and
indicate the ability of the State to service its debt obligations. This section assesses the
sustainability of the debt of the Government in terms of rate of growth of outstanding
debt; ratio of interest payments and revenue receipts, debt repayments and debt receipts;
net debt available to the State.
Table 2.33 analyses the debt sustainability of the State according to these indicators for
the period of five years from 2017-18 to 2021-22.
Table 2.33: Trends in debt Sustainability indicators
(` in crore)
Sl.
Particulars 2017-18 2018-19 2019-20 2020-21 2021-22
No.
1 Outstanding Public Debt* 39,030.01 52,254.22 63,146.72 76,659.7914 82,912.7715
Rate of growth of outstanding
2 28.48 33.88 20.85 21.40 8.16
Public Debt (per cent)
Gross State Domestic Product
3 2,82,266 3,27,693 3,44,571 3,52,161 4,00,061
(GSDP)
Rate of growth of GSDP
4 7.41 16.09 5.15 2.20 13.60
(per cent)
5 Debt/GSDP (per cent) 13.83 15.95 18.33 20.8916 18.7117
Average interest Rate of
6 Outstanding Public Debt 7.52 6.79 7.42 7.19 7.35
(per cent)
Percentage of Interest payment to
7 4.37 4.76 6.70 7.78 6.85
Revenue Receipt
Percentage of Debt Repayment to
8 10.36 7.97 44.39 37.16 58.58
Debt Receipt
9 Net Debt available to the State# 6,044.56 10,126.19 6,610.26 8,645.96 799.18
Net Debt available as per cent to
10 62.62 70.47 33.75 40.06 5.29
Debt Receipts
11 Primary Deficit (-)3,711.99 (-)4,639.69 (-)12,999.19 (-)10,189.27 51.14
Debt Stabilisation (Quantum
12 (-)3,752.99 219.95 (-)14,432.62 (-)13,859.45 4,728.55
spread@ + Primary Deficit)
Source: Finance Accounts of the respective years
* Outstanding Public Debt is the sum of outstanding balances under the heads 6003-Internal Debt and
6004- Loans and Advances from the Central Government.
# Net debt available to the State Government is calculated as excess of Public debt receipts over Public
debt repayment and interest payment on Public Debt.
@ Quantum spread = Debt * interest spread; Where Interest spread = GSDP growth rate - average
interest rate. For computation of quantum spread for the year 2020-21 & 2021-22, the debt and average
Interest rate are taken excluding back to back loan of `3,109 and `8,074.15 crore respectively.

14
Includes back to back loan of `3,109 crore provided in lieu of shortfall in GST compensation as debt
receipt to the State Government with no repayment liability for the State.
15
Includes back to back loan of `8,074.15 crore provided in lieu of shortfall in GST compensation as
debt receipt to the State Government with no repayment liability for the State.
16
Debt/GSDP has been calculated on `73,550.79 crore after excluding back to back loan of `3,109 crore
from total public debt of `76,659.79 crore.
17
Debt/GSDP has been calculated on `74,838.62 crore after excluding back to back loan of `8,074.15
crore from total public debt of `82,912.77 crore.

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State Finances Audit Report for the year ended 31 March 2022

A necessary condition for debt stability states that if the rate of growth of economy
exceeds the interest rate or cost of public borrowings, the debt GSDP ratio is likely to
be stable provided primary balances are either zero or positive or are moderately
negative.
Given the rate spread (GSDP growth rate – interest rate) and quantum spread (Debt *
rate spread), debt sustainability condition states that if quantum spread together with
primary deficit is zero, debt-GSDP ratio would tend to be constant or debt would
stabilize eventually. On the other hand, if primary deficit together with quantum spread
turns out to be negative, debt-GSDP ratio would be rising and in case it is positive, debt
GSDP ratio would eventually be falling.
• During year 2017-18 and 2019-21 debt to GSDP ratio was rising as primary
deficit together with quantum spread was negative and so could not fulfill the
condition for debt stabilization. However, during 2021-22, the rate of growth of
economy (rate of growth of GSDP) exceeded the interest rate or cost of public
borrowings resulting in falling debt to GSDP ratio and fulfillment of necessary
condition for debt stabilization.
• Higher percentage of interest payments leaves less funds for priority areas.
Percentage of interest payments to revenue receipt measures the margin of
safety a government has for paying interest on its debt during a given period.
There was increasing trend in the percentage of interest payment on public debt
to revenue receipt from 2017-18 to 2020-21. However, during 2021-22 interest
payment on public debt to revenue receipt decreased to 6.85 per cent as
compared to 7.78 per cent over the previous year.
• The percentage of net debt available to the State after repayment of borrowings
and interest decreased to five per cent (`799.18 crore) in 2021-22 as against 40
per cent (`8,645.96 crore) in 2020-21. Decline in net debt availability of the
State indicates towards increased burden of servicing of debt and leave the State
with limited fund available for development activities.
• The average expenditure (Public debt repayment and interest payment on Public
Debt) on debt servicing during the period 2017-22 was `9,612.78 crore, which
accounted for 59.86 per cent of average public debt receipts (`16,058.01 crore)
during the same period, implying that a large percentage of debt was being used
for debt servicing rather than productively.
Total outstanding guarantees (₹19,523.54 crore) of the State Government at the end of
March 2022 stood at 65.02 per cent of State own Revenue Receipts. Since the State has
not created Guarantee Redemption Fund (GRF), any liability arising due to default by
the borrowing entities would be serviced through budget provision which will put
additional burden on the State Government.
Chart 2.21 below depicts the sustainability of debt of the State Government in terms
of debt/GSDP ratio.

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 Chapter II - Finances of the State

Chart 2.21: Trends of Debt Sustainability indicators

(in per cent)

58.58
44.39
37.16
33.88
28.48

21.40

20.89
20.85

18.71
18.33
16.09

15.95
13.83
13.60

10.36
8.16

7.97
7.78
7.41

6.85
6.70
5.15

4.76
4.37
2.20
Rate of growth of Rate of growth of Debt as per cent of Percentage of Percentage of Debt
outstanding Public GSDP GSDP Interest payment to Repayment to Debt
Debt Revenue Receipt Receipt

2017-18 2018-19 2019-20 2020-21 2021-22

Source: Finance Accounts of the respective years

Note: Debt as percent of GSDP computed after excluding back to back loan in 2020-21 &2021-22.

2.7.1 Trend of Outstanding Public Debt for Repayment in upcoming

Years
The borrowings of the State Government are governed by Article 293 of the
Constitution of India. The State Government takes loans/borrows from market for
implementation of various State Plan programmes and fulfilment of fiscal liabilities.
The principal and interest of outstanding debt stock for repayment in next 10 years on
the present debt liabilities is depicted below in Table 2.34.
Table 2.34: Outstanding Public Debt (Principal) for Repayment in next 10 years
(` in crore)
Outstanding Public Debt (Principal) for Repayment
Sl. No. Year Internal Debt of the Loans and Advances from
Total
State Government Central Government
1 2021-22 8,625.64 219.66 8,845.30
2 2022-23 5,652.58 354.80 6,007.38
3 2023-24 7,204.78 294.16 7,498.94
4 2024-25 9,045.96 203.42 9,249.38
5 2025-26 10,800.46 189.02 10,989.48
6 2026-27 10,180.20 184.83 10,365.03
7 2027-28 11,870.44 184.80 12,055.24
8 2028-29 7,555.93 178.40 7,734.33
9 2029-30 7,981.26 162.46 8,143.72
10 2030-31 256.48 143.18 399.66
11 2031-32 120.44 133.70 254.14
Total 79,294.17 2,248.43 81,542.60
Source: Finance Accounts 2021-22

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State Finances Audit Report for the year ended 31 March 2022

During 2021-22, the State Government made principal repayment of `8,625.64 crore
against Internal Debt and `219.66 crore against Loans and Advances from Central
Government. Further, the State Government will have to make principal repayment of
`70,668.53 crore against Internal Debt and `2,028.77 crore against Loans and
Advances from Central Government from 2022-23 to 2031-32. Outstanding principal
and interest of market loans for repayment is shown in below Table 2.35.
Table 2.35: Outstanding principal and interest of Market Loans for repayment
(` in crore)
Outstanding Market Loans for Repayment
Sl. No. Year
Principal Interest Total
1 2021-22 3,000.00 4,697.32 7,697.32
2 2022-23 4,200.00 4,589.64 8,789.64
3 2023-24 5,700.00 3,949.77 9,649.77
4 2024-25 7,500.00 3,525.19 11,025.19
5 2025-26 9,550.00 2,733.74 12,283.74
6 2026-27 9,200.00 2,334.75 11,534.75
7 2027-28 11,100.00 1,449.69 12,549.69
8 2028-29 7,000.00 769.08 7,769.08
9 2029-30 7,680.00 558.28 8,238.28
Total 64,930.00 24,607.46 89,537.46
Source: Finance Accounts 2021-22
The State Government made principal repayment of `3,000.00 crore and interest
repayment of `4,697.32 crore against market loans during 2021-22. Further, the State
Government will have to make principal repayment of `61,930.00 crore and interest
repayment of `19,910.14 crore against market borrowings from 2022-23 to 2029-30.
Market loans of `61,930.00 crore forms a major part (85.19 per cent) of total public
debt-principal component of `72,697.30 crore. Trend of repayment of outstanding
market loans is shown in Chart 2.22 below.
Chart 2.22: Trend of outstanding Market Loans for repayment
(` in crore)
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
14,000 12,283.74 12,549.69
11,025.19 11,534.75
12,000
9,649.77 9,550.00 9,200.00
10,000 8,789.64 7,769.08 8,238.28
7,697.32 7,500.00 11,100.00
8,000
4,589.64 5,700.00
6,000 4,697.32 7,000.00 7,680.00
4,000
4,200.00 3,949.77
2,000 3,000.00 3,525.19 558.28
2,733.74 2,334.75
0 1,449.69
769.08
Market Loans(Principal) Interest Total Repayments
Source: Finance Accounts 2021-22

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As can be seen from above chart, that the outstanding year wise market loans for
repayment shows an increasing trend, the State Government needs to augment its
resources to meet the increasing debt repayment burden over the coming years.
2.7.2 Utilisation of borrowed fund
Borrowed funds should ideally be used to fund capital creation and developmental
activities. Using borrowed funds for meeting current consumption and repayment of
interest on outstanding loans is not sustainable. Details and trends of utilisation of
borrowed funds during 2017-18 to 2021-22 are given in Table 2.36.
Table 2.36: Utilisation of borrowed funds
(` in crore)
Sl.
Particulars 2017-18 2018-19 2019-20 2020-21 2021-22
No.
18
1 Total Borrowings 15,851.32 20,736.52 31,921.72 33,423.87 28,164.36
Repayment of earlier
2 7,202.52 6,923.87 19,958.77 19,422.11 21,657.37
borrowings (Principal)
Balance available after
3 8,648.80 13,812.65 11,962.95 14,001.76 6,506.99
borrowing repayments
4 Net Capital expenditure (-)9,997.64 (-)8,898.19 (-)8,561.69 (-)9,019.34 (-)10,499.33
5 Net Loans and Advances (-)230.00 (-)77.80 200.75 53.62 (-)235.79
6=1- Portion of Revenue
2-3- expenditure met out of Nil Nil 3,602.01 5,036.04 Nil
4 net available borrowings
Surplus borrowing in
7 Nil 4,836.66 Nil Nil Nil
Cash Balance
Source: Finance Accounts of the respective years

Table 2.36 shows that borrowings during 2021-22 was less than the expenditure on
capital account, i.e., repayment of public debt, capital expenditure and loans and
advances disbursed, thereby, implying that a portion of expenditure on capital account
were met from revenue surplus of the State. During the year 2021-22, 77 per cent of
borrowed funds were utilised towards the repayment of earlier borrowings leaving only
23 per cent of borrowed fund for development activities. During 2021-22, total
borrowings decreased by `5,259.51 crore (15.74 per cent) from `33,423.87 crore in
2020-21 to `28,164.36 crore in 2021-22. However, repayment of earlier borrowings
increased by `2,235.26 crore (11.51 per cent) in 2021-22 over the previous year.

2.7.3 Guarantees – Contingent Liabilities

Guarantees are liabilities contingent on the Consolidated Fund of the State in case of
default by the borrower for whom the guarantee has been extended. The total
outstanding guarantees of the State Government were within the ceilings fixed under
the Chhattisgarh State Government Guarantee Rules in last five years. The details of
outstanding guarantees at the end of the financial year for the year 2017-18 to 2021-22
are given in Table 2.37.

18
Total Borrowing includes receipts under Public Debt and Other Public Account liabilities

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Table 2.37: Guarantees given by the Government of Chhattisgarh

(` in crore)
Sl. No. Guarantees 2017-18 2018-19 2019-20 2020-21 2021-22
Ceiling applicable to the
1 outstanding amount of 17,230.12 18,364.57 20,391.20 30,051.62 30,026.15
guarantees*
Outstanding amount of
2 3,881.92 10,769.42 18,459.36 19,836.13 19,523.54
guarantees
Source: Finance Accounts of the respective years
* As per Chhattisgarh State Government Guarantees Rules, 2003, the total outstanding guarantees in a
financial year shall not exceed seventy per cent of the State’s own Revenue Receipts in the preceding
year. However, the limit was increased (July 2020) to hundred per cent through Chhattisgarh State
Government Guarantees Rules, 2020 (Amended).

As of 31 March 2021, the State Government guaranteed the loans of various entities
amounting to `19,836.13 crore. During the year 2021-22, it guaranteed a further amount
of `661.25 crore. An amount of `973.84 crore was repaid during the year, leaving the
outstanding guarantees at the end of March 2022 at `19,523.54 crore.
Audit noticed that many of the above entities raised funds through loans based on
Government guarantees for implementation of Government schemes/programmes.
These entities are either loss making and/or financed by the Government. In five such
cases scrutinized by Audit revealed that the State Government has been servicing the
loans and interest thereon through budget, thus shifting the burden to the Government.
The outstanding Guarantees (`19,523.54 crore) at end of March 2022 stood at 65.02
per cent of State’s own Revenue Receipts19 of the preceding year (i.e. `30,026.15 crore
in 2020-21) which was well within the ceiling of 100 per cent. During the year 2021-
22, against the guarantee fees receivable of `76.00 crore, `73.50 crore was received
and guarantees fees for guarantees given to Atal Nagar Vikas Pradhikaran (`2.50 crore)
was not received.
2.7.4 Management of Cash Balances
The State Government invests its surplus cash balance in short and long-term GoI
Securities and Treasury Bills. The profits derived from such investments are credited as
receipts under the head ‘0049-Interest Receipts’.
It is not desirable that State Government takes recourse to market loans despite having
large cash balances leading to further accretion to cash balances without putting it to
productive use. Table 2.38 depicts the cash balances and the investments made out of
these by the State Government during the year.

19
The State’s own Revenue Receipts comprises of State Own Tax Revenue and Non-Tax Revenue

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Table 2.38: Status of Cash Balances

(` in crore)
Opening Closing
Sl.
Particulars balance as on balance as on
No.
01 April 2021 31 March 2022
1 A. General Cash Balances
2 Cash in treasuries 0.00 0.00
3 Deposits with Reserve Bank (-)1,121.67 (-)610.48
4 Deposits with other Banks 0.00 0.00
5 Remittances in transit 0.00 0.00
6 Total (-)1,121.67 (-)610.48
7 Investment held in ‘Cash Balance Investment Account’ 3,389.68 3,345.39
8 Total A 2,268.01 2,734.91
9 B. Other Cash Balances and Investments
Cash with the Departmental Officers viz. Forest, Public
10 11.95 12.10
Works Departments, Military Secretary to the Governor
Permanent advances for contingent expenditure with
11 0.34 0.34
Departmental Officers
12 Investment of Earmarked Funds 7,181.07 7,174.27
13 Total B 7,193.36 7,186.71
14 Total A and B 9,461.37 9,921.62
15 Interest realised 29.66 28.23
Source: Finance Accounts of 2021-22

Cash Balances of the State Government at the end of the current year increased by
`460.25 crore from `9,461.37 crore in 2020-21 to `9,921.62 crore in 2021-22.
Under an agreement with the Reserve Bank of India (RBI) the Government of
Chhattisgarh has to maintain the required minimum cash balance of `0.72 crore
with the RBI. If the balance falls below the agreed minimum balance on any day,
the shortfall is made good by taking Ordinary and Special Ways and Means
Advance or Ordinary Ways and Means Advance. While the State Government has
not availed of any Ways and Means Advances during 2021-22, it availed of Special
Drawing facility of `4,217.51 crore from RBI. The cash balance investments of the
State during the five-year period 2017-18 to 2021-22 are given below in the Table 2.39.
Table 2.39: Cash Balance Investment Account (Major Head-8673)
(` in crore)
Cash Balance Investment
Sl.
Year Opening Increase (+) / Interest
No. Closing Balance
Balance decrease (-) earned
1 2017-18 2,512.00 4,070.85 1,558.85 140.20
2 2018-19 4,070.85 9,759.02 5,688.17 144.33
3 2019-20 9,759.02 5,246.81 (-)4,512.21 196.10
4 2020-21 5,246.81 3,389.68 (-)1,857.13 29.66
5 2021-22 3,389.68 3,345.39 (-)44.29 28.23
Source: Finance Accounts of respective years

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The position of closing balance of Cash Balance Investment of the State Government
during 2017-22 decreases by `725.46 crore with inter year fluctuation from `4,070.85
crore in 2017-18 to `3,345.39 crore in 2021-22.
Chart 2.23 below compares the Cash Balance and the Market Loans availed by the
State Government during the period 2017-22.
Chart 2.23: Market Loans vis-à-vis Cash Balance
(` in crore)
14,000 12,899.99
11,680.00 13,000.00
12,000 12,277.88

10,079.74
10,000 8,100.00 11,396.60
9,461.37 9,921.62
8,000
6,804.91 9,759.02
5,246.81
6,000
4,708.45 3,999.99
3,389.68 3,345.39
4,000
4,070.85 4,151.82
2,000
2,734.91
2,268.01
0
2017-18 2018-19 2019-20 2020-21 2021-22

Cash balance and investment of cash balance General Cash Balance

Cash Balance Investment Accounts Market Loans

Source: Finance Accounts of respective years

The State Government made investment of `3,345.39 crore in Government of India

Treasury Bills from the General cash balance as on 31 March 2022. During 2021-22,
the State Government received interest of `28.23 crore on its investment of cash balance
and raised market loans of `3,999.99 crore at an average interest rate of 6.64 per cent.
The buildup of large cash balances increases the interest cost burden for the State
Government. The State Government could have lowered its borrowings and burden of
interest by utilizing surplus cash balance available with it.

2.8 Conclusion
The State Government registered a significant increase of 26.08 per cent in its Revenue
Receipts during 2021-22 compared to the previous year. The Own tax revenue
increased by 18.33 per cent and non-tax revenue increased by 94.08 per cent and
achieved the level anticipated in budgetary projections.
The State Government achieved the target of Revenue surplus (`4,642.02 crore) and
ratio of Fiscal Deficit to GSDP (1.52 per cent) was within the target of four per cent
prescribed under FRBM/MTFPS during the 2021-22.
Revenue expenditure which constitute 87 per cent of total expenditure increased by
7.11 per cent during 2021-22 compared to the previous year. Though the Capital

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Expenditure increased by 16.40 per cent over the previous year, its share in total
expenditure was merely 12 per cent. While the revenue expenditure as a percent of
GSDP was 18.75 per cent, the capital expenditure stood at 2.63 per cent of GSDP in
2021-22. The allocative priority accorded to capital expenditure by the State
Government was less than the average of general category States in 2021-22.
Debt-GSDP ratio of the State decreased from 25.44 per cent in the year 2020-21 to
22.77 per cent in the year 2021-22 against the target of 28.34 per cent under the
FRBM/MTFPS.
Debt Stabilisation increased during the year 2021-22 due to the lower average interest
rate on public debt as compared to GSDP growth rate. The percentage of Interest
Payment on Public Debt to Revenue Receipts also decreased to 6.85 per cent in the
year 2021-22 from 7.78 per cent in the year 2020-21.
The percentage of net public debt available to the State after repayment of borrowings
and interest decreased to five per cent (`799.18 crore) in 2021-22 as against 40 per
cent (`8,645.96 crore) in 2020-21. Decline in net debt availability of the State indicates
towards increased burden of servicing of debt and leave the State with limited fund
available for development activities.
Committed Expenditure to Revenue Expenditure in the year 2021-22 decreased to
58.92 per cent from 60.08 per cent in the year 2020-21.
The State Government has not constituted Guarantee Redemption Fund for meeting the
debt servicing obligation arising in the event of default by the borrowing agency out of
guarantees issued by the Government.
During the year 2021-22, the State Government transferred less contribution to the
Consolidated Sinking Fund, which was 0.32 per cent of the outstanding liabilities as
against its minimum required contribution of at least 0.50 per cent.

2.9 Recommendations
i. The State Government should explore ways to rationalise its committed expenditure
so that more funds can be made available for development expenditure.
ii. The State Government should create the Guarantee Redemption Fund as per the
recommendations of Twelfth Finance Commission.
iii. Government should review and analyse the reasons for delays in completion of
capital projects and initiate expeditious measures to enable the departments
involved, to overcome the hurdles in this regard.

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 CHAPTER III
BUDGETARY MANAGEMENT
2

Chapter III: Budgetary Management

3.1 Introduction
This chapter reviews the integrity, transparency and effectiveness of the budgetary process
and allocative priorities, including supplementary grants, and the concomitant financial
management and assessing whether decisions taken at the policy level are implemented at
the administrative level without diversion of funds.

3.2 Budget Process

The annual exercise of budgeting is a tool for detailing the roadmap for efficient use of
public resources. Government of Chhattisgarh follows a top-down approach for budget
preparation. The process followed by the State for budget preparation is broadly as follows:
 At the beginning of the financial year, Finance Department undertakes a preliminary
assessment of the financial resources that are likely to be available with the State in the
ensuing financial year based on past trends with due consideration of policy
announcements by the Union and State Governments and any recent developments that
may significantly impact resource availability.
 Based on the quantum of resources estimated, Finance Department determines the
affordable level of Government expenditure for the financial year.
 The Budget Circular includes the calendar of dates for submission and review of
estimates to be prepared by departments. It is also accompanied by procedural details for
the preparation of the Gender, Child, Youth, Agriculture and Outcome Budgets.
 Thereafter, Finance Department carries out the evaluation of the State’s financial
resources based on guidelines issued by the Niti Ayog. Various inputs from revenue-earning
departments are also incorporated in these estimates. An estimation of resources of local
bodies and State PSUs is also made. On receiving budget estimates of expenditure from
departments, Finance Department scrutinizes and finalizes these estimates for which it
holds discussions with department officials.
The estimates are compiled by Finance Department in prescribed formats in which they
are to be presented to the Legislative Assembly for vote and approval for expenditure out
of the Consolidated Fund of the State by presenting its Annual Budget and Demands for
Grants/Appropriations. Supplementary or Additional Grant/Appropriation is provided
during the course of the financial year for meeting expenditure in excess of the originally
budgeted amount. Further, the State Government also re-appropriates/re-allocates funds
from various units of Appropriations where savings are anticipated to units where
additional expenditure is envisaged (within the Grant/Appropriation) during the year.

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State Finances Audit Report for the Year ended 31 March 2022

The total budget approved by the State Legislature including the original and supplementary
budgets, expenditure, and savings during the year 2021-22 are depicted in Chart 3.1.
Chart 3.1: Summary of Budget and Expenditure of Chhattisgarh for 2021-22

Original
Budget:
`1,05,212.73
crore
Total
Budget Expenditure: Savings:
Provision: `96,368.41 `13,930. 88
`1,10,299.29 crore crore
crore
Supplementary
Provision:
`5,086.56 crore

Approved by the Legislature Implemented by the Government

3.3 Financial Accountability and Budget Review

3.3.1 Gender Budget
Gender budget is a part of the overall budget and is designed to aid the development of
women. Schemes related to women are divided into two categories- (1) Women-specific
schemes in which 100 per cent budget provision is related to women and (2) Pro-women
schemes in which at least 30 per cent of budget provision is related to women.
During 2021-22, the State Government allocated `530.85 crore (original budget only) for
23 schemes which are 100 per cent women-centric. Out of the total budget of `530.85
crore, only `471.58 crore (88.83 per cent) was utilised and remaining `59.27 crore (11.17
per cent) was either surrendered or re-appropriated. Details are shown in Appendix 3.1.
The budget provision of `13,296.86 crore for 114 schemes in which a part of the budget
(minimum 30 per cent) was to be spent on pro-women schemes during 2021-22 did not
provide details of distinct sub-heads or object heads. Thus, the actual amount spent on
women-centric schemes could not be verified during audit.
3.3.2 Youth Budget
Youth budget is a part of the overall budget and the schemes related to youth were divided
into two categories- (1) Youth-specific schemes in which 100 per cent budget provision is
related to youth, and (2) Pro-youth schemes in which at least 50 per cent of budget
provision is related to youth.
During 2021-22, State Government made a budget provision of `1,464.64 crore (original

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budget of `1,419.84 crore and supplementary budget of `44.80 crore) for 50 schemes
which are 100 per cent youth-centric. Out of the total budget of `1,464.64 crore, only an
expenditure of `719.73 crore (49.14 per cent) was incurred, and remaining `744.91 crore
(50.86 per cent) was either surrendered or re-appropriated. Details are shown in
Appendix 3.2.
The budget provision of `2,866.37 crore for 51 schemes in which a part of the budget
(minimum 50 per cent) was to be spent on pro-youth schemes during 2021-22 did not
specify distinct sub-heads or object heads. Thus, the actual amount spent on youth-centric
schemes could not be verified in audit.
3.3.3 Agriculture Budget
This budget includes the development of agriculture sector and the interests of farmers’
activities as well as information on expenditure on these activities.
During 2021-22, the State Government provided `19,313.63 crore in the budget (original
budget of `18,513.39 crore and supplementary budget of `800.23 crore) for 261 schemes
for agriculture under 13 departments1. Out of this budget, an expenditure of `16,046.29
crore (83.08 per cent) was incurred and remaining `3,267.34 crore (16.92 per cent) was
either surrendered or re-appropriated.
3.3.4 Child Budget
The state government has introduced child budget for the first time to provide adequate
budget to about 80 lakh children in the state. Investing in children and adolescents is critical
to achieving inclusive, equitable and sustainable development for the present and future
generations and efficient spending ensures that the rights of all children are promoted and
protected. Chhattisgarh has also incorporated this in its CG SDG (Chhattisgarh Sustainable
Development Goals) Vision till 2030.
During 2021-22, the State Government provided `3,532.55 crore in the budget for 45
schemes under six departments2. Out of this, a budget of `51.45 crore was allocated for 11
schemes which are 100 per cent child-centric. An expenditure of `25.85 crore (50.24 per
cent) was incurred and remaining `25.60 crore (49.76 per cent) was either surrendered or
re-appropriated.
3.3.5 Major Policy Initiatives/New Schemes
While presenting its Budget for the year 2021-22, the State Government announced a total

1
Agriculture Department, Animal Husbandry Department, Fisheries Department, Co-operative Department,
Water Resource Department, Revenue Department, Panchayat and Rural Development Department, Forest
Department, Energy Department, Finance Department, Food and Civil Supply Department, Ayacut
Department, and Rural Industry Department
2
Labour Department, Public Health & Family Welfare Department, School Education Department, Tribal
Welfare Department, Social Welfare Department, and Women & Child Development Department
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State Finances Audit Report for the Year ended 31 March 2022

of 47 major policy initiatives/new schemes with an allocation of `1,256.15 crore. Out of

these major policy initiatives/new schemes, it provided a total budget of `37.10 crore under
seven major policy initiatives/new schemes (one crore and above) spanning across various
departments in which no expenditure was incurred during the year and the entire amount
was either surrendered/ re-appropriated mainly due to non/short release of funds by
Government, non-receipt of proposals, non-approval of works etc. Details are shown in
Appendix 3.3.

3.4 Appropriation Accounts

Audit of Appropriation Accounts by the Comptroller and Auditor General of India seeks
to ascertain whether the expenditure actually incurred under various grants is in
accordance with the authorization made under the Appropriation Act and that the
expenditure required to be charged under the provisions of the Constitution (Article 202)
is so charged. It also ascertains whether the expenditure incurred is in conformity with the
relevant laws, rules, regulations and instructions.
3.4.1 Summary of Appropriation Accounts
The summarized position of budget including supplementary budget, actual expenditure,
and excess/savings during 2021-22 against 71 grants/ appropriations is given below:
Table 3.1: Summarised position of Expenditure vis-à-vis Budget Provision
(` in crore)
Nature of Supple- Surrender
Original Total Expendi- Excess
Expendit- mentary Savings (-) during
Budget Budget ture (+)
ure Provision March
-12,348.56 590.14 12,248.64
Revenue 78,002.98 3,313.30 81,316.28 69,557.86
(15.19) (0.73) (99.19)
-5,066.23 5,058.31
Capital 14,582.88 1,358.33 15,941.21 10,875.25 0.27
Voted

(31.78) (99.85)
Loans and -36.42 94.60
304.75 68.00 372.75 336.33 0.00
Advances (9.77) (259.77)
Total -17,451.21 590.41 17,401.55
92,890.61 4,739.63 97,630.24 80,769.45
Voted (17.87) (0.60) (99.72)
-535.07 0.42 533.68
Revenue 6,924.57 346.93 7,271.50 6,736.85
(7.36) (0.01) (99.74)
-4.37 4.36
Charged

Capital 21.19 0.00 21.19 16.82 0.00

(20.58) (100.00)
Public 3,468.93
5,376.37 0.00 5,376.37 8,845.29 0.00 0.00
Debt (64.52)
Total -539.44 3,469.35 538.04
12,322.12 346.93 12,669.05 15,598.97
Charged (4.26) (27.38) (99.74)
-17,990.65 4,059.76 17,939.59
Grand Total 1,05,212.73 5,086.56 1,10,299.29 96,368.41
(16.31) (3.68) (99.72)
Source: Appropriation Account 2021-22
The total savings amounted to `17,990.65 crore (16.31 per cent of total grants/
appropriation), and `18,509.20 crore was surrendered. Out of the total surrender of

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 Chapter III - Budgetary Management

`18,509.20 crore, an amount of `17,939.59 crore (96.92 per cent) was surrendered in the
month of March, hence leaving no scope for utilisation of these funds for other
developmental purposes. Also, since the Government could not utilise the original
provision, the supplementary provision of `5,086.56 crore proved unnecessary.

3.4.2 Utilisation of Budgeted Funds

The utilisation of budgeted funds by the State Government has been sub-optimal every
year in the past years. The extent of utilisation of budget during the five-year period from
2017-18 to 2021-22 is shown in Chart 3.2.
Chart 3.2: Budget Utilisation during 2017-18 to 2021-22
120000 86.30 87.37 90
81.22 85
100000 78.68
80
72.01
75
80000
70

1,10,299.29
1,09,950.26
1,06,913.44
1,05,170.51

60000 65

96,368.41
92,261.34

89,299.71
88,599.01

75,733.43

60
69,712.30

40000
55
50
20000
45
0 40
2017-18 2018-19 2019-20 2020-21 2021-22
Budget (O+S) (₹ crore) Expenditure Budget Utilisation (%)

Source: Appropriation Account of the respective years

The percentage of utilisation of budget increased from 78.68 per cent in 2017-18 to 87.37
per cent during 2021-22. Also, the utilisation of funds increased from 81.22 per cent in
2020-21 to 87.37 per cent of the total budgetary provision in 2021-22. This increase in
utilisation of funds was mainly due to gradual unlocking of the economy after Covid-19
pandemic. There was an increase in revenue expenditure this year over the previous year
mainly in Medical and Public health and in General Education. There was also an increase
in capital expenditure due to according administrative approval of new work for
construction of Roads and Bridges.

3.5 Comments on Integrity of Budgetary and accounting process

3.5.1 Misclassification of capital expenditure as revenue expenditure

The Indian Government Accounting Standard (IGAS)-2 regarding Accounting and
Classification of Grants-in-Aid prescribes that the Grants-in-Aid disbursed by a grantor
shall be classified and accounted for as revenue expenditure in the Financial Statements
of the grantor irrespective of the purpose for which the funds were disbursed. Only in

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cases, specifically authorised by the President of India on the advice of the Comptroller
and Auditor General of India, can these be debited to Capital head of account in the
Financial Statements of the Government.
Further, Rule 30 of Government Accounting Rule 1990 and Para 324 of Madhya Pradesh
Financial Code-Volume-I (adopted by the State of Chhattisgarh) state the criteria for
determining whether expenditure should be classified under heads of Capital Section or
Revenue Section of the Consolidated Fund.
Expenditure of a capital nature to be classified in the Capital Section shall broadly be
defined as expenditure incurred with the objective of increasing concrete assets of a
material and permanent character. Expenditure on a temporary asset or expenditure on
Grants-in-Aid to local bodies or institutions for the purposes of creating assets which will
belong to these local bodies or institutions cannot ordinarily be classified as capital
expenditure, except in cases specifically authorised by the President on the advice of the
Comptroller and Auditor General be debited to Capital head of account.
During 2021-22, the Government of Chhattisgarh made budget provisions and
misclassified Grants-in-Aid (GiA) of `2,227.04 crore provided for the creation of capital
assets under Capital Section. The expenditure incurred out of GiA as capital expenditure
during 2017-18 to 2021-22 is shown in Table 3.2.
Table 3.2: Extent of classification of GiA as Capital Expenditure
(` in crore)
Sl.
Particulars 2017-18 2018-19 2019-20 2020-21 2021-22
No.
1 GiA booked as a Capital Expenditure 2,359.39 1,998.74 1,939.61 1,865.85 2,227.04
2 Total Capital Expenditure 10,000.96 8,903.45 8,566.39 9,024.19 10,504.22
3 Share of GiA in Capital Expenditure (%) 23.59 22.45 22.64 20.68 21.20
Source: Finance Account of the respective years
Chart 3.3: Share of Grants-in-aid in Capital Expenditure

30
23.59 22.45 22.64
25 20.68 21.20
20
15
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22

GiA in Capital Expenditure (%)

Source: Appropriation Account of the respective years

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 Chapter III - Budgetary Management

3.5.2 Unnecessary or excessive supplementary grants

The State Legislature approved three supplementary allocations of `5,086.56 crore during
2021-22. Audit analysis of utilisation of these supplementary allocations showed that in 31
cases pertaining to 26 grants, supplementary provision of `50 lakh or more in each case
aggregating `2,597.12 crore obtained during the year proved entirely unnecessary as the
actual expenditure was even less than the original provision. Details are shown in
Appendix 3.4.
Under 17 Grants, there was significant savings of `100 crore and above out of original
budget provision, and yet supplementary provision was obtained. Details are given below
in Table 3.3.
Table 3.3: Case where supplementary provision was obtained even though savings
were `100 crore and above out of the original budget provision
(` in crore)
Saving out of
Sl. Grant Original Supple- Actual
Name of the Grant Original Budget
No. No. Budget mentary Expenditure
Amount %
Revenue (Voted)
Other expenditure
pertaining to General
1 02 346.18 5.87 159.28 -186.90 53.99
Administration
Department
2 03 Police 5,073.18 15.83 4,471.03 -602.15 11.87
Land Revenue and
3 08 918.94 201.00 806.38 -112.56 12.25
District administration
Water Resources
4 23 620.31 3.11 474.32 -145.99 23.54
Department
5 27 School Education 5,140.25 57.29 4,586.48 -553.77 10.77
Administration of
6 29 478.05 9.71 364.16 -113.89 23.82
Justice and Elections
Expenditure pertaining
to Panchayat and Rural
7 30 3,049.75 160.79 2,024.41 -1,025.34 33.62
Development
Department
Food Civil Supplies and
8 39 2,333.05 41.50 2,024.51 -308.53 13.22
Consumer Protection
9 41 Tribal Area Sub-Plan 16,242.98 601.19 13,884.41 -2,358.57 14.52
Expenditure pertaining
10 55 to Women and Child 1,016.19 6.65 748.67 -267.53 26.33
Welfare
Special Component Plan
11 64 5,136.72 379.01 4,489.82 -646.90 12.59
for Scheduled Castes
Urban Administration
12 69 and Development 895.12 258.62 774.38 -120.74 13.49
Department-Urban
Expenditure pertaining
13 79 to Medical Education 903.03 7.00 672.67 -230.35 25.51
Department
Total-Revenue Voted 42,153.75 1,747.56 35,480.52 -6,673.23 15.83

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State Finances Audit Report for the Year ended 31 March 2022

Capital (Voted)
Land Revenue and
14 08 231.89 4.00 4.86 -227.03 97.90
District administration
Water Resources
15 23 519.16 0.12 232.25 -286.91 55.26
Department
16 41 Tribal Area Sub-Plan 3,233.04 395.19 2,516.54 -716.50 22.16
17 67 Public Works-Buildings 785.44 0.01 307.90 -477.53 60.80
Total-Capital Voted 4,769.53 399.32 3,061.56 -1,707.97 35.81
Grand Total 46,923.28 2,146.88 38,542.08 -8,381.20 17.86
Source: Appropriation Accounts 2021-22
Further, under 20 sub-heads, entire supplementary provision of ` one crore or more in each
case amounting to `193.36 crore remained unutilised as shown in Table 3.4. This indicates
that supplementary provisions were made without realistic estimation of requirement of
funds and reflects poor budget management.
Table 3.4: Details where entire supplementary provision (`1 crore and above) remained
unutilised
(` in crore)
Sl. Original Supplementary Total
Scheme Name
No. Budget Budget Budget
1 03- 2055- 1- 7811- Dial 100/112 45.00 1.00 46.00
2 03- 4055- 208- 101- 2629- Police 82.00 1.00 83.00
3 17- 4425- 200- 311- 8545- NABARD Assistance 0.00 3.92 3.92
Godown Construction
4 19- 2210- 1- 2283- Direction and Administration 0.20 1.03 1.23
(Rajiv Gandhi Mission, Basic Services)
5 19- 2210- 200- 101- 6362- Dr. Khoobchand 275.00 50.00 325.00
Baghel Swasthya Sahayata Yojana
6 41- 2202- 109- 702- 8979- Integrated Umbrella 72.00 4.80 76.80
Scheme
7 41- 2202- 112- 702- 6933- Midday Meals 58.96 8.78 67.74
Programme in Middle Schools
8 41- 2210- 101- 6390- Mukhyamantri Haat Bazar 1.90 1.33 3.23
Clinic Yojana
9 41- 2408- 102- 102- 8674- Compensation to 115.57 31.54 147.11
Expenditure Incurred in Food Procurement to the
State Co-operative Marketing Federation
10 41- 2501- 102- 702- 7490- National Rural 152.00 26.01 178.01
Livelihood Mission
11 41- 4425- 200- 312- 8545- NABARD Assistance 0.00 1.09 1.09
Godown Construction
12 41- 4702- 101- 102- 3828- Minor Irrigation 250.00 3.60 253.60
Schemes
13 45- 4702- 101- 101- 3803- Minor and Micro 199.80 1.01 200.81
minor Irrigation schemes
14 64- 2202- 112- 703- 6933- Midday Meals 35.80 5.33 41.13
Programme in Middle Schools
15 64- 2202- 109- 103- 7363- Youth Career 0.45 3.00 3.45
Development Scheme

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 Chapter III - Budgetary Management

Sl. Original Supplementary Total

Scheme Name
No. Budget Budget Budget
16 64- 4225- 102- 603- 7626- Local Development 51.77 4.00 55.77
Programme by Special Central Assistance
17 64- 4702- 102- 103- 5059- Construction of 20.00 11.92 31.92
Anicut/stop dam
18 79- 4210- 110- 101- 6385- Medical College 1.20 2.00 3.20
Attached Hospital
19 79- 4210- 105- 101- 6386- Medical Dental 1.50 2.00 3.50
Physiotherapy College
20 79- 4210- 105- 101- 6386- Medical Dental 3.50 30.00 33.50
Physiotherapy College
Total 1,366.65 193.36 1,560.01
Source: Appropriation Account of 2021-22

3.5.3 Unnecessary or excessive re-appropriation

Reappropriation is the transfer, by a competent authority, of savings from one unit of
appropriation to meet additional expenditure under another unit within the same section
(Revenue-Voted, Revenue-Charged, Capital-Voted, Capital-Charged) of the grant or
charged appropriation.
During 2021-22, in 15 cases pertaining to eight grants, there were savings after re-
appropriation as detailed in Table 3.5. It shows that re-appropriations were made without
adequate assessment and reflects poor financial management.
Table 3.5: Unnecessary/Excessive re-appropriation
(` in crore)
Final
Re- Actual
Sl. Supple- Excess
Grant No. and Head of Accounts Original Appro- Total expend-
No. mentary (+)/
priation iture
Saving (-)
33- 2202- 2- 110- 307- Contribution of
1 0.10 0.00 8.88 8.98 0.00 -8.98
Non-government Institution
58- 2245- 2- 111- 7352- Grant in aid to
2 23.00 0.00 3.02 26.02 18.92 -7.10
grieful family
45- 4702- 102- 101- 5059- Construction
3 100.00 0.00 20.89 120.89 120.07 -0.82
of Anicut/stop dam
4 67- 2059- 1- 53- 3692- State Legislature 1.50 0.00 0.50 2.00 1.47 -0.53
5 67- 2059- 80- 1- 101- 2418- Execution 2.00 0.00 0.75 2.75 2.29 -0.46
67- 2059- 80- 1- 101- 3300- Circle
6 0.40 0.00 0.10 0.50 0.35 -0.15
establishment
67- 2059- 80- 1- 101- 3566- Headquarter
7 0.40 0.00 0.10 0.50 0.37 -0.13
Establishment
8 10- 2406- 2- 110- 2900- Sanctuary Area 3.00 0.00 0.77 3.77 3.68 -0.09
67- 2059- 80- 1- 101- 3300- Circle
9 0.01 0.00 0.05 0.06 0.03 -0.04
establishment
10 33- 2202- 2- 109- 979- Sports Complex 0.25 0.00 0.01 0.26 0.23 -0.03
66- 2225- 3- 102- 6749- State Backward
11 0.01 0.00 0.04 0.05 0.02 -0.03
Class Commission

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 State Finances Audit Report for the Year ended 31 March 2022

08- 2053- 93- 1510- District

12 0.00 0.00 0.02 0.02 0.00 -0.02
Establishments
58- 2245- 80- 1- 2304- Direction and
13 0.07 0.00 0.01 0.08 0.06 -0.02
Administration
41- 2202- 2- 796- 109- 102- 1395-
14 0.20 0.00 0.03 0.23 0.21 -0.01
Hostels
41- 2202- 2- 796- 109- 102- 1395-
15 0.10 0.00 0.03 0.13 0.12 -0.01
Hostels
Source: Appropriation Account of 2021-22

3.5.4 Entire budget provision not utilised under sub-heads

In 76 cases under 28 grants and two appropriations, the entire provision (`10 crore and
above) made under various sub-heads aggregating to `5,027.45 crore remained unutilised
as shown in Appendix 3.5. Significant cases of un-utilised budget provision of `100 crore
and above, are detailed below in Table 3.6.
Table 3.6: Details where un-utilised budget provision was `100 crore and above
(` in crore)
Sl. Original Supple- Total
Scheme Name
No. Budget mentary Budget
1 30- 2216- 03- 105- 701- 7807- Pradhan Mantri Awas 620.00 0.00 620.00
Yojana (Rural)
2 CH1- 6003- 110- 637- Ways and Means Advances 581.88 0.00 581.88
3 41- 2216- 03- 796- 105- 702- 7807- Pradhan Mantri Awas 456.00 0.00 456.00
Yojana (Rural)
4 CH2- 2049- 01- 101- 2199- New Market Loan 275.00 0.00 275.00
5 CH1- 6003- 110- 779- Advance to meet Shortfall 250.00 0.00 250.00
6 42- 5054- 04- 796- 337- 702- 7842- R.R.P. PHASE - II 230.00 0.00 230.00
7 30- 2215- 02- 107- 701- 7610- Swachh Bharat Abhiyan 200.00 0.00 200.00
8 41- 2215- 02- 796- 107- 702- 7610- Swachh Bharat Abhiyan 152.00 0.00 152.00
9 64- 2216- 03- 789- 105- 703- 7807- Pradhan Mantri Awas 144.00 0.00 144.00
Yojana (Rural)
10 80- 2853- 02- 800- 101- 6299- Transfer of Revenue received 139.37 0.00 139.37
from minor mineral of rural areas to Panchayats
11 79- 4210- 03- 105- 701- 6386- Medical Dental 100.00 0.00 100.00
Physiotherapy College
Total 3,148.25 0.00 3,148.25
Source: Appropriation Account of 2021-22

3.5.5 Large Savings/Surrenders

Against the total savings of `17,990.65 crore, savings of more than `100 crore occurred
under 30 grants/appropriations amounting to `15,989.22 crore which is 88.87 per cent of
the overall savings during the year as detailed in Appendix 3.6. Out of these 30
grants/appropriations, savings of more than `500 crore was observed in eight grants
amounting to `9,132.79 crore as detailed in Appendix 3.7. Further, surrender of more than
`10 crore was made in 61 grants/appropriations amounting to `18,901.27 crore as detailed

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in Appendix 3.8.
There were huge savings during 2021-22, with eight out of 71 Grants/Appropriations
showing utilisation of less than 50 per cent of the budget allocation. Utilisation of budgetary
allocation in these eight Grants/Appropriations for the five-year period from 2017-18 to
2021-22 is shown in Table 3.7.
Table 3.7: Grants/ Appropriations where utilisation of budget was less than
50 per cent

2017-18

2018-19

2019-20

2020-21

2021-22
Total
Budget
Budget
Sl. No. of 2021-22
Grant Name (5 years)
No. Years*
(budget utilisation in
(` in crore)
per cent)
02- Other expenditure pertaining to
1 General Administration Department 65 58 46 06 37 3 432.11 750.33
09- Expenditure pertaining to
2 36 37 58 24 37 4 21.24 108.45
Revenue Department
15- Financial Assistance to Three
Tier Panchayati Raj Institutions
3 92 42 85 58 43 2 166.35 2,013.06
Under Special Component Plan For
SC
22- Urban Administration and
4 Development Department-Urban 87 82 73 24 44 2 13.68 116.91
Bodies
5 46- Science and Technology 36 35 34 34 39 5 28.78 119.98
57- Externally Aided Projects
6 pertaining to Water Resources - - - 00 00 2 7.00 107.00
Department
75- NABARD aided projects
7 74 66 29 25 23 3 699.06 3,496.78
pertaining to WRD
82- Financial Assistance to Tribal
8 Area Sub-Plan - Three Tier 87 49 81 53 46 2 325.65 5,682.38
Panchayati Raj Institutions
*Number of years with utilisation below 50 per cent
Source: Appropriation Account of the respective years
Low Budget utilisation is indicative of systemic lacunae that warrant a close review by the
Government to enable initiation of expeditious corrective measures. Reasons for repeated
low utilisation in Grant 46– Science and Technology may be examined by Government
and corrective action be taken.
Inability to utilise the budgeted provision deprives allocation of resources to other priority
sectors and leads to poor legislative control over public finances.
3.5.6 Missing/ Incomplete Explanation for Variation from Budget
Apart from showing the expenditure against the approved budget, Appropriation Accounts
also provide explanation for cases where the expenditure varies significantly from the
budgeted provision (Original and Supplementary). The limit beyond which, such variation
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State Finances Audit Report for the Year ended 31 March 2022

at the Sub-Head/Sub-Sub-Head level (Unit of Appropriation) are to be explained in the

Appropriation Accounts is set by the Public Accounts Committee (PAC).
Accountant General (A&E) provides the draft Appropriation Accounts to the Controlling
Officers of the Departments and seeks the reasons/ explanation for the variations in
expenditure with reference to approved budgetary allocation in keeping with the limits set
by the PAC.
The following criteria have been prescribed by the PAC for the selection of sub-heads
(excess/savings) for comments to be included in the Appropriation Accounts:
1. Comments are to be made on Savings (Voted):
• Overall saving exceeding two per cent of the total provision (Original plus
Supplementary).
• Individual sub-heads for saving exceeding ` five lakh in case of Grants less than `10
crore.
• Individual sub-heads for saving exceeding `10 lakh in case of Grants between `10 crore
and `30 crore.
• Individual sub-heads for saving exceeding `20 lakh in case of Grants exceeding `30
crore.
2. Comments are to be made on Savings (Charged) for all sub-heads where the
variation is more than ` five lakh.
3. Comments are to be made on Excess (Voted):
• Individual sub-heads for excess exceeding ` five lakh in case of Grants less than `10
crore.
• Individual sub-heads for excess exceeding `10 lakh in case of Grants between ₹10 crore
and `30 crore.
• Individual sub-heads for excess exceeding `20 lakh in case of Grants exceeding `30
crore.
• General comments for regularisation of excess over the provision in all cases where
there is overall excess (any amount) in grant.
4. Comments are to be made on Excess (Charged) in respect of all sub-heads where
the variation is more than ` five lakh.
Audit of Appropriation Accounts of 2021-22 revealed that the Controlling Officers have
not provided explanation for the variations in the expenditure vis-à-vis budgeted allocation
in 36.04 per cent of the cases. Out of the total 2,550 Sub-Heads, reasons for variation were
required in respect of 1,365 Sub-Heads as shown in Appendix 3.9. However, appropriate
reasons for variations in 492 Sub-Heads were not furnished by the Controlling Officers of
Government Departments. The total number of Sub-Heads in the accounts, Sub-heads
requiring explanation and the Sub-Heads where explanations were received for variations
from allocations, are shown in Chart 3.4.

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 Chapter III - Budgetary Management

Chart 3.4: Summary of Explanation for Variation in Appropriation Accounts

Explanation received 873

Sub-Heads requiring explanation 1365

Total No. of Sub-Heads 2550

Absence of explanation for variation between the budgeted allocation and its utilisation,
limits legislative control over budget as a means of ensuring financial accountability of
the Government.
3.5.7 Excess expenditure and its regularisation
Under Article 205 of the Constitution of India, it is mandatory for a State Government to
get the excess over a grant/ appropriation regularised by the State Legislature. As per Para
26.15 of Budget Manual, cases where excess expenditure has occurred, based on
recommendations of the Public Accounts Committee, this excess expenditure should be
regularized by presenting it to the Legislative Assembly as required under Articles 205 (1)
(b) of the Constitution by the Finance Department in the form of Excess Grants.
There was an excess expenditure of `4,059.76 crore over the authorisations made by the
State Legislature under two Grants and three Appropriations during the financial year
2021-22. This was mainly due to excess expenditure of `4,217.51 crore incurred by the
State Government without budget provision, to recoup the temporary loan granted to the
State Government by the Reserve Bank of India as collateral advance against the
investment in Treasury bills to maintain cash balance under Special Drawing Facility.
Details are given below in Table 3.8.
Table 3.8: Excess over provision requiring regularisation during 2021-22
(` in crore)
Total
Sl. Department Grant Total Excess
Grant Description Grant/Appr-
No. Name No. Expenditure Expenditure
opriation
Revenue Voted
Finance Expenditure pertaining
1 06 6,974.74 7,564.88 590.14
Department to Finance Department
Capital Voted
Religious Trusts
Religious Trusts and
2 and Endowments 51 4.50 4.77 0.27
Endowments
Department
Revenue Charged
Finance Expenditure pertaining
3 06 0.46 0.87 0.41
Department to Finance Department

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State Finances Audit Report for the Year ended 31 March 2022

Women and Expenditure pertaining

4 Child Welfare 55 to Women and Child 0.00 0.01 0.01
Department Welfare
Capital Charged
5 - CH1 Public Debt 5,376.37 8,845.29 3,468.93
Total 12,356.07 16,415.83 4,059.76
Source: Appropriation Account 2021-22
Excess expenditure over the provision for the year is not only in contravention of the
provisions requiring Legislative Sanction but is also an indicative of bad planning, which
could have been avoided by keeping a track of expenditure progression with the budget
made for the purpose.
Excess expenditure of `13,376.63 crore over provision for the years 2000-01 to 2020-21
is yet to be regularised as detailed in Appendix 3.10. This is in violation of Article 204 (3)
and Article 205 of the Indian Constitution which provides that no money shall be
withdrawn from the Consolidated Fund of the State except under appropriation made by
law by the State Legislature. This vitiates the system of budgetary and financial control
and encourages financial indiscipline in management of public resources. The State
Government may fix responsibility for non regularisation of excess expenditure.
Details of excess expenditure over legislative authorisation during period 2000-01 to
2020-21 are given in the Table 3.9.
Table 3.9: Excess over provision requiring regularisation during 2000-01 to 2020-21
(` in crore)
Sl. No. Year No. of Grants No. of Appropriations Amount of excess
1 2000-01 11 2 10.21
2 2001-02 14 2 115.90
3 2002-03 8 2 114.59
4 2003-04 4 2 591.12
5 2004-05 4 5 133.36
6 2005-06 4 2 23.27
7 2006-07 4 1 5.13
8 2007-08 3 3 15.99
9 2008-09 9 1 115.26
10 2009-10 10 5 216.77
11 2010-11 22 6 293.78
12 2011-12 24 1 498.09
13 2012-13 2 2 0.96
14 2013-14 3 3 178.96
15 2014-15 4 2 833.54
16 2015-16 3 2 98.24
17 2016-17 2 3 12.38
18 2017-18 3 3 2.61
19 2018-19 2 4 1.67
20 2019-20 3 4 6,682.69
21 2020-21 2 2 3,432.11
Total 141 57 13,376.63
Source: Appropriation Accounts of respective years

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Major head-wise excess disbursement of `4,167.09 crore over the authorization in 10

Major Heads under 12 grants/appropriations during 2021-22 are detailed in
Appendix 3.11.

3.6 Rush of Expenditure

As per Paragraph 92 of the Madhya Pradesh Budget Manual (as followed by Government
of Chhattisgarh), rush of expenditure, particularly in the closing months of the financial
year, should be avoided. The rush of expenditure towards the end of the financial year is
regarded as a breach of financial propriety.
An expenditure of `1,976.13 crore was incurred in 13 Major Heads which was more than
50 per cent of the total expenditure of the concerned Major Head in March 2022. Details
are given in the following Table 3.10.
Table 3.10: Rush of Expenditure
(` in crore)
Expendit- Expenditure
Total
Major 1st 2nd 3rd 4th ure in the in March as
Description Expenditure
Head Qtr Qtr Qtr Qtr month of a percentage
(TE)
March of TE
2435 Other 0.00 0.00 0.00 12.00 12.00 12.00 100.00
Agricultural
Programs
4220 Capital Outlay 0.00 0.00 0.00 0.06 0.06 0.06 100.00
on Information
and Publicity
6425 Loans For 0.00 0.00 0.00 50.00 50.00 50.00 100.00
Cooperation
4853 Capital Outlay 0.00 0.17 0.33 13.26 13.76 12.47 90.59
on Nonferrous
Mining and
Metallurgical
Industries
4055 Capital Outlay 0.48 3.88 5.17 89.72 99.25 88.09 88.75
on Police
4070 Capital Outlay 0.00 0.00 0.25 4.68 4.93 4.33 87.88
on Other
Administrative
Services
4235 Capital Outlay 0.00 0.12 0.25 3.58 3.94 3.15 79.91
on Social
Security and
Welfare
6217 Loans For 0.00 9.50 16.00 80.70 106.20 71.20 67.04
Urban
Development
2245 Relief On 68.35 61.05 132.30 618.57 880.27 562.73 63.93
Account of
Natural
Calamities

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3275 Other 0.00 4.69 11.00 32.13 47.82 30.23 63.21

Communication
Services
2702 Minor Irrigation 19.29 18.22 16.35 58.47 76.50 47.74 62.41
4225 Capital Outlay 12.71 47.95 81.22 239.52 381.40 197.74 51.85
on Welfare of
Scheduled
Castes,
Scheduled
Tribes Other
Backward
Classes &
Minorities
2048 Appropriation 0.00 0.00 0.00 300.00 300.00 150.00 50.00
For Reduction
or Avoidance of
Debt
Total 100.83 145.58 262.87 1,502.69 1,976.13 1,229.74 62.23
Source: Appropriation Accounts and data from VLC
In three major heads, 100 per cent expenditure was incurred in the month of March 2022.
It shows poor utilisation of funds over the fiscal year. Maintaining a steady pace of
expenditure is a crucial component of sound public financial management, as it obviates
fiscal imbalance and temporary cash crunches due to mismatch of revenue-expenditure
during a particular month arising out of unanticipated heavy expenditure in that particular
month.
Month-wise trend of expenditure and receipts for the financial year ended 31 March 2022
is shown in Chart 3.5.
Chart 3.5: Monthly receipts and expenditure during FY2021-22
(` in crore)

13,763.31
18,000
10,972.80

10,513.62
16,000
8,929.02

14,000
8,016.74

7,765.00
7,631.70

7,266.37
7,377.63
7,334.65

6,759.88

6,483.97

12,000
6,108.42
5,946.97

5,871.63
5,810.78

5,758.66
5,439.58

5,380.27
5,163.29

5,047.71

4,821.40
4,435.88

10,000
3,342.63

8,000
6,000
4,000
2,000
0

Receipts Expenditure
Source: VLC Data 2021-22

Funds received in the last quarter (Jan-Mar 2022) was 38.16 per cent of the total receipts.
Release of funds in the last quarter is one of the reasons for experiencing rush of
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 Chapter III - Budgetary Management

expenditure. Funds which cannot be "profitably utilised" should be returned to the

exchequer without waiting for the fiscal year to end. This will help avoid rush of
expenditure, particularly in the closing months of the financial year.

3.7 Status of DDO Accounts

Drawing and Disbursing Officer (DDO) is a Head of Office and also any other Officer so
designated by the Finance Department of the State Government, to draw bills and make
payments on behalf of the State Government. The term shall also include a Head of
Department where he himself discharges such function and is responsible for all moneys
received or disbursed in his office and the maintenance of accounts thereof.
As per Rule 284 of MP Treasury Code Vol.1, no money shall be drawn from the treasury
unless it is required for immediate disbursement. It is a serious irregularity to draw advances
from the treasury in anticipation of demands, or to prevent the lapse of budget grants, and
persons at fault render themselves liable to disciplinary action for such drawal. As of 31
March 2022, an amount of `266.06 crore was lying in the 371 DDO accounts of the State
Government. Even though this amount has already been accounted for as expenditure from
the consolidated fund of the State, they are still lying idle parked outside the Government
Accounts.

3.8 Review of Selected Grant

For the year 2021-22, Grant No.03- Police and Grant No. 30- Expenditure pertaining to
Panchayat & Rural Development were selected for detailed audit to review compliance with
prescribed budgetary procedures, monitoring of funds, control mechanisms and
implementation of schemes within the grant. Findings of the grant review are discussed in
the succeeding paragraphs.
3.8.1 Grant No. 03 - Police
The Police Department is responsible for maintaining law and order in the State through
various enforcement and development agencies and taking actions, initiatives and efforts
for establishing credible policing. Four Budget Controlling Officers (BCO) namely Director
General of Police; Chief Commandant (Home Guard) and Director General, Public
Security, Raipur; Director, Public Prosecution and Directorate of State Forensic Science
Laboratory receive budget under this grant.
Further, four Major Heads viz. 2049- Interest Payments, 2055- Police, 2070- Other
Administrative Services and 4055- Capital Outlay on Police are operated under this grant.
3.8.1.1 Budget and expenditure
The overall position of budget provision, actual expenditure and savings/ excess under
this grant during the three-year period 2019-22 is given below:

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Table 3.11: Budget and Expenditure

(` in crore)
Sl.
Provision 2019-20 2020-21 2021-22
No.
Revenue Provision 4,602.53 4,998.58 5,090.97
1 Expenditure 4,300.62 4,070.25 4,472.77
2 Savings 301.91 928.33 618.20
3 Savings (%) 6.56 18.57 12.14
Capital Provision 66.40 135.39 133.74
4 Expenditure 43.02 106.21 98.96
5 Savings 23.38 29.18 34.78
6 Savings (%) 35.21 21.55 26.01
Total Budget Provision 4,668.93 5,133.97 5,224.71
7 Total Expenditure 4,343.64 4,176.46 4,571.73
8 Total Savings 325.29 957.50 652.98
9 Savings (%) 6.97 18.65 12.50
Source: Appropriation Account 2019-22
As can be seen from the above table, savings as a percentage of total budget provision
ranged from 6.97 to 12.50 per cent during the period 2019-22. Persistently large savings
is an indicative of incorrect assessment of actual needs and it requires a review of budget
preparation exercise of the Department. This also shows that budget allocations were made
without considering previous year’s trends in expenditure which resulted in persistent
savings.
3.8.1.2 Injudicious Budget Proposal
Table 3.12: Details of budget proposed and provisions made
(` in crore)
Sl. Scheme Code and Name Budget Budget Expendit- Savings out of Budget
No Proposed Provision ure Proposal
. made
Amount %
4491- General Expenditure
1 2,460.08 2,429.71 2,132.63 327.45 13.31
(District Establishment)
4492- General Expenditure
2 1,469.43 1,468.68 1,376.58 92.85 6.32
(Special Police)
7918- Assistance to Naxal
3 266.64 266.64 182.75 83.89 31.46
affected Districts
4 2629- Police 185.00 173.50 152.63 32.37 17.50
5 3680- State Headquarters 107.39 111.43 88.68 18.71 17.42
6 7811- Dial 100/112 92.00 68.00 42.03 49.97 54.32
195- Other Police Training
7 60.44 57.44 47.85 12.59 20.83
Schools
8 4155- Wireless Centre, Raipur 57.99 57.08 43.92 14.07 24.26
Source: Appropriation Account as rendered by the department
As it can be seen from the above table, department has submitted inflated budget proposals
in some cases where expenditure occurred is less than the approved budget provision.

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Therefore, BCOs made budget proposals without realistic estimation of requirement of

funds and reflects poor financial management.
3.8.1.3 Surrender of Savings
According to Chhattisgarh Budget Manual, a Budget Controlling Officer should anticipate
savings under a Grant and communicate them to the Finance Department not later than
15th February of each year. Table 3.11 reveals that out of a total budget provision of
`5,224.71 crore during 2021-22, there was a savings of `652.98 crore.

3.8.1.4 Unnecessary supplementary grant and subsequent surrender

under the schemes
Audit noticed irregular supplementary provision and subsequent surrender under the
following scheme heads during 2021-22, as shown in Table 3.13:
Table 3.13: Unnecessary supplementary Provision
(` in crore)
Sl. Head Classification Scheme Original Suppleme Total Total Surre-
No. Name provision ntary Provision Expenditure nder
Provision
1 2055-00-001-0000- Dial 45.00 1.00 46.00 36.83 9.17
7811-10-009 100/112
2 4055-00-208-0101- Police 82.00 1.00 83.00 64.70 18.30
2629-26-003
Source: Appropriation Account 2021-22
On this being pointed out, Additional Director General of Police, Police Headquarters
stated (September 2022) that Dial 100/112 scheme is presently operational in 11 districts
of Chhattisgarh. Due to non-availability of administrative approval for the remaining 17
districts, government could not utilise the whole budget provision.
3.8.1.5 Persistent savings under Scheme Heads
As per paragraph 31 of Chhattisgarh Budget Manual, ‘it is probable that estimates carefully
prepared in accordance with the foregoing instructions may still be too high. They should,
therefore, be examined with reference to the difference between the estimate and the actual
in the past three years and the proposed amount should be on that basis.”
In three scheme heads there was persistent savings during three-year period 2019-22 as
shown in Table 3.14.

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Table 3.14: Persistent Savings under Scheme Heads

2019-20 2020-21 2021-22
Scheme Code and Name P S S P S S P S S
` in lakh % ` in lakh % ` in lakh %
7660- Crime Research Unit for 350.64 350.64 100 350.64 350.64 100 359.44 359.44 100
Women
5611- Establishment of Police 2.70 2.70 100 2.70 2.70 100 2.70 2.70 100
Public School
5612- Establishment of Police 2.80 2.80 100 2.80 2.80 100 2.80 2.80 100
Hospital
Source: Appropriation Account of respective years P = Provision, S = Savings
Persistent savings to the extent of 100 per cent under the above scheme heads during the
last three years i.e., 2019-22 indicates that the budgeting process in the Department was
unrealistic, and funds to the extent of savings were not required during the years.
On this being pointed out, Additional Director General of Police, Police Headquarters stated
(September 2022) that the budget provision could not be utilised due to non-filling of 330
vacant posts under the scheme 7660- Crime Research Unit for Women.
3.8.1.6 Non-utilisation of budget provision during 2021-22
Non-utilisation of the entire budget provision in these schemes during 2021-22 shows the
budgeting process and assessment of the scheme requirements was unrealistic. Details of
savings of entire budget provision are shown in Table 3.15.
Table 3.15: Non-utilisation of budget provision
(` in lakh)
Sl. Scheme Head Original Actual Re-
No grant Expenditure appropriated/
. Surrendered
1 2055-0801-7811 Dial 100/112 10.00 Nil 10.00
2 2055-0801-7935 For controlling crime in 10.00 Nil 10.00
Narcotics drugs and psychotropic
3 2055-09-701-7660 Crime research unit for woman 359.44 Nil 359.44
4 2070-107-2710 Office of the commandant general 6.00 Nil 6.00
and other subordinate offices - Charged
5 4055-207-6717 reimbursable expenditure related 50.10 Nil 50.10
to security
6 2055-109-701-5612 Establishment of police 2.80 Nil 2.80
hospital
7 4055-0101-800-7012 Police accountability 2.50 Nil 2.50
authority
8 2055-109-701-5611 Establishment of police 2.70 Nil 2.70
public school
Total 443.54 0 443.54
Source: Appropriation Account as rendered by the department
On this being pointed out, the Department stated (September 2022) that the provisions

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were demanded for creation of new posts under various schemes. On further enquiring
about the reasons for non-creation of posts, department did not furnish any replies.
3.8.1.7 Non-reconciliation of departmental expenditure figures
As per the instructions issued (August 2010) by the Finance department, Government of
Chhattisgarh, the departments should invariably reconcile their expenditure under different
heads of accounts with the figures booked by the Principal Accountant General (A&E).
A review of Grant No. 03 revealed that departmental figures mentioned under the following
heads were not reconciled as shown in the Table 3.16.
Table 3.16: Non-reconciliation of expenditure
(` in crore)
As per the
As per the O/o of
Department
Sl. the PAG (A&E)
Scheme Head classification (e-kosh*)
No.
Total Expend Total Expendi
budget iture budget ture
1 03-2055-001-3680 State Headquarters 98.83 85.67 96.86 85.97

2 03-2055-003-195 Other Police Training Schools 56.80 47.29 56.47 47.70

03-2055-104-4492 General Expenditure (Special

3 1,459.68 1,367.72 1,443.88 1,390.56
Police)
03-2055-109-4491 General Expenditure (District
4 2,410.45 2,115.59 2,423.05 2,130.95
Establishment)
03-2055-109-6717 Reimbursable Expenditure Related
5 202.38 196.64 207.88 196.8
to Security
03-2055-109-8333 Expenditure from Road Security
6 20.00 20.00 20.00 15.00
Fund
03-2055-111-2531Supervisory Staff (Rail Police -
7 39.17 30.38 39.17 30.60
Eastern Section)
8 03-2055-114-4155 Wireless Centre, Raipur 53.95 41.81 53.95 42.19
Total 4,341.26 3,905.1 4,341.26 3,939.77
Source: Appropriation Account 2021-22 and departmental figures
*Online Computerisation of Treasuries, Chhattisgarh accessible at ekoshonline.cg.nic.in

3.8.1.8 Rush of expenditure

As per paragraph 92 of Madhya Pradesh Budget Manual, any grant that cannot be
profitably utilised should be surrendered. Rush of expenditure particularly in the closing
month of the financial year should be avoided. Further, in order to implement Cash
Management System with a view of enhancing quality in government expenditures, the
Finance Department has instructed the departments to frame a suitable plan to control the
expenditure of budget during the year so as to avoid rush of expenditure during the last
quarter. However, rush of expenditure was observed in some scheme heads as shown in
the Table 3.17.

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Table 3.17: Rush of expenditure

(` in crore)
Expend Expen-
Expend
Expend -iture diture
Total -iture
Sche -iture Total occurre occurred
Sl. Budget occurre
me Scheme Name occurre Expen- d in the in the
No. Provisi d in last
Head d in last diture month month of
on quarter
quarter of March
(%)
March (%)
Expenditure from Road
1 8333 20.00 20.00 20.00 15.00 100.00 75.00
Security Fund
Deployment of Central
2 0121 11.00 10.57 10.57 10.57 96.11 96.11
Police Force
Anti-Human Trafficking
3 6460 3.60 3.36 3.60 3.36 93.28 93.28
Unit
Special Infrastructure
Scheme with Strong
4 7936 40.00 31.25 37.78 16.21 78.12 40.51
Construction Police
Stations
5 2629 Police 85.50 64.01 66.47 63.48 74.87 74.25
Crime and Criminal
6 7633 Tracking Network 9.00 6.12 8.12 6.12 67.99 67.99
System
Assistance to Naxal
7 7918 266.64 140.00 182.75 140.00 52.51 52.51
affected Districts
Office of the
8 2710 Commandant General 0.72 0.32 0.32 0.32 44.79 44.79
and other
Reimbursable
9 6717 Expenditure Related to 202.88 67.04 196.64 35.74 33.04 17.61
Security
Source: Appropriation Account 2021-22
On this being pointed out, the department replied (September 2022) that rush of
expenditure was a result of delay in obtaining administrative approvals and re-
appropriation orders in heads where savings were anticipated.
3.8.2 Grant No. 30 - Expenditure pertaining to Panchayat and Rural
Development Department
This Department implements schemes for generation of self-employment and wage
employment, provision of housing and minor irrigation assets to rural poor, social
assistance to the destitute and Rural Roads. Apart from this, the Department provides the
support services and other quality inputs such as assistance for strengthening of DRDA
Administration, Panchayati raj institutions, training research, human resource
development, development of voluntary action etc. for the proper implementation of the
programmes.
Two Budget Controlling Officers (BCO) namely Director, Panchayat and Development
Commissioner, Rural Development receive budget under this grant.

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Further, nine Major Heads viz. 2215- Water Supply and Sanitation, 2216- Housing, 2235-
Social Security and Welfare, 2501- Special Programmes for Rural Development, 2505-
Rural Employment, 2515- Other Rural Development Programmes, 3054- Roads and
Bridges, 4515- Capital Outlay on Other Rural Development Programmes Interest
Payments and 5054- Capital Outlay on Roads and Bridges are operated under this grant.
3.8.2.1 Budget and expenditure
The overall position of budget provision, actual expenditure and savings/ excess under this
grant during the three-year period 2019-22 is given below:
Table 3.18: Budget and Expenditure
(` in crore)
Sl.
Provision 2019-20 2020-21 2021-22
No
Revenue Provision 2,947.10 3,219.66 3,210.73
1 Expenditure 1,906.11 1,486.52 2,024.41
2 Savings 1,040.99 1,733.14 1,186.32
3 Savings (%) 35.32 53.83 36.95
Capital Provision 981.73 868.59 929.89
4 Expenditure 825.17 765.12 783.78
5 Savings 156.56 103.47 146.11
6 Savings (%) 15.95 11.91 15.71
Total Budget Provision 3,928.83 4,088.25 4,140.62
7 Total Expenditure 2,731.28 2,251.64 2,808.19
8 Total Savings 1,197.55 1,836.61 1,332.43
9 Savings (%) 30.48 44.92 32.18
Source: Appropriation Account 2019-22
As can be seen from the above table, savings as a percentage of total budget provision
ranged from 30.48 to 44.92 per cent during the period 2019-22. This persistently large
savings is an indicative of incorrect assessment of actual needs or shortfall in performance
or both. This also shows that budget allocations were made without considering previous
years’ trends in expenditure which resulted in persistent savings.
3.8.2.2 Non-utilisation of budget provision during 2021-22
Non-utilisation of the entire budget provision in these schemes during 2021-22 shows the
budgeting process and assessment of the scheme requirements was unrealistic. Details of
savings of entire budget provision are shown in Table 3.19.

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Table 3.19: Non-utilisation of budget provision

(` in crore)
Sl. Scheme Head & Name Original Actual Re-
No Provision Expenditure appropriated/
. Surrendered
1 30- 2215- 107- 701- 7610 Swachh Bharat 200.00 Nil 200.00
Abhiyan
2 30- 5054- 337- 101- 4855 Pradhan Mantri Gram 30.00 Nil 30.00
Sadak Yojana
3 30- 5054- 101- 101- 4871 Construction of Bridges 20.00 Nil 20.00
on PMGSY Roads
4 30- 4515- 102- 101- 6437 Gauthan Construction 1.50 Nil 1.50
in Village Areas
5 30- 4515- 102- 801- 7644 Rural Road Network 1.00 Nil 1.00
Training and Research Centre
6 30- 2235- 196- 101- 7974 Abhisarit Aam Aadami 0.50 Nil 0.50
Bima Yojana
7 30- 2235- 196- 101- 7975 Abhisarit Pradhan 0.50 Nil 0.50
Mantri Jiwan Jyoti Bima Yojana / Pradhan
Mantri Suraksha Yojana
Total 253.50 0.00 253.50
Source: Appropriation Account as rendered by the department
On this being pointed out, the Department stated (October 2022) the following:
• 4855- Pradhan Mantri Gram Sadak Yojana & 4871- Construction of Bridges on
PMGSY Roads: There was no requirement under these schemes. Hence, respective
budgets have been reappropriated and allocated to CSS under PMGSY and the
same were utilised..
• 6437- Gauthan Construction in Village Areas: Under convergence in all the
districts, the work of construction of Gauthans (cow sheds) in rural areas was being
done by the Collector. For this reason, due to non-demand of the fund provided in
the budget, the amount was not withdrawn and the entire amount was surrendered.
• 7644- Rural Connectivity Training And Research Centers (RCTRC) & Rural Road
Network Management Units (RRNMU): Budget provision was made for purchase
of furniture, computers etc. to be installed in the nearly finished 4th floor of the
building but due to delay in completion of construction, the entire amount was not
utilised.
• 7974- Abhisarit Aam Aadami Bima & 7975- Abhisarit Pradhan Mantri Jiwan Jyoti
Bima Yojana: Due to non-renewal of insured beneficiaries since 01 June 2019
under this scheme by LIC, the entire amount was not utilised.

3.8.2.3 Persistent savings under Scheme Heads

As per paragraph 31 of Chhattisgarh Budget Manual, ‘it is probable that estimates carefully
prepared in accordance with the foregoing instructions may still be too high. They should,
therefore, be examined with reference to the difference between the estimate and the actual

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 Chapter III - Budgetary Management

in the past three years and the proposed amount should be on that basis.”
In seven scheme heads there was cent per cent persistent savings during three-year period
2019-22 as shown in Table 3.20.
Table 3.20: Persistent Savings cent per cent under Scheme Heads
(` in lakh)
Sl. Budget Provision
No Scheme Head & Name
. 2021-22 2020-21 2019-20
1 4515-102-101-3064 Building Construction 2.00 2.00 24.00
5054-101-101-4871 Construction of bridges on PMGSY
2 2,000.00 2,000.00 2,000.00
roads
2501-60-196-101-6768 GiA to unemployment allowance
3 5.00 20.00 20.00
fund
2501-60-196-101-7588 Maternity allowance under
4 0.25 0.25 0.25
MGNREGA
2515-102-801-7644 Rural Road Network Training &
5 10.60 10.60 10.00
Research Centre
6 2515-102-801-7658 Sansad Adarsh Gram Yojana 8.60 8.60 8.60
7 2515-102-801-7659- Vidhayak Adarsh Gram Yojana 8.60 8.60 12.10
Source: Appropriation Account 2019-22
Persistent savings to the extent of 100 per cent under the above scheme heads during the
last three years i.e., 2019-22 indicates that the budgeting process in the Department was
unrealistic, and funds to the extent of savings were not required during the years.
On this being pointed out, the Department stated (October 2022) the following:
• 4871- Construction of bridges on PMGSY roads: Construction of bridges on
PMGSY roads was done from the funds available under other centrally sponsored
scheme (CSS) head (5054-04-337-4855) hence no fund allocated under this head
(5054-101-101-4871) was utilised and the same was surrendered/re-appropriated.
• 6768- GiA to unemployment allowance fund: Due to zero demand from the districts,
entire budget provision was not utilised.
• 7588- Maternity allowance under MGNREGA: Allowances provided under this
head are being made from previous years withdrawn funds, hence this token budget
provision could not be utilised.
• 7644- Rural Road Network Training & Research Centre: Budget provision was
made for purchase of furniture, computers etc. but due to delay in completion of
construction of 4th floor in the building, the entire amount was not utilised in the
years 2019-20 and 2020-21. Hence, there was no release of funds this year.
• 7658- Sansad Adarsh Gram Yojana & 7659- Vidhayak Adarsh Gram Yojana:
Budget provision was made for purchase of stationaries, computers and other office
expenses but expenditure was made from funds available under other schemes as
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ordered by administration and HRD department of the office. Hence entire budget
provision made under this head was not utilised.
Table 3.21: Persistent Savings (up to 96 per cent) under Scheme Heads
(` in crore)

Scheme 2019-20 2020-21 2021-22

classification
Budget Exp Savings Budget Exp Savings Budget Exp Savings
2216-03-105-701-
588.43 620.58 704.16
7807-PMAY 894.00 305.57 800.00 179.42 900.00 195.84
(66%) (78%) (78%)
(Rural)
4515-102-701-
7759-Shyama 37.00 25.00 47.28
55.00 18.00 55.00 30.00 50.00 2.72
Prasad Mukherjee (67%) (45%) (96%)
Rurban Mission
Source: Appropriation Account 2019-22
On this being pointed out, the Department stated (October 2022) the following:
• 7807-PMAY (Rural): Budget provision of `894.00 crore (Centre- `584 crore &
State- `310 crore) was made in the year 2019-2020. To achieve the target of
construction of houses, Central government released `224.84 crore in the first
instalment, to match the contribution, state government took a loan in 2018-19 and
made interest payments of `80.72 crore in 2019-20, hence making the expenditure
of `305.57 crore. In the subsequent years, since there was no release of funds from
the centre as state could not provide its matching contribution, only interest
payments and principal repayments were made of `179.42 crore in 2020-21 and of
`195.84 crore in 2021-22.
• 7759- Shyama Prasad Mukherjee Rurban Mission: Due to lesser release of funds
against the budgeted provision by the Central government, expenditure made under
this scheme (Grant 30) is low.
3.8.2.4 Rush of Expenditure
As per paragraph 92 of Madhya Pradesh Budget Manual, any grant that cannot be profitably
utilised should be surrendered. Rush of expenditure particularly in the closing month of the
financial year should be avoided. Further, in order to implement Cash Management System
with a view of enhancing quality in government expenditures, the Finance Department has
instructed the departments to frame a suitable plan to control the expenditure of budget
during the year so as to avoid rush of expenditure during the last quarter. However, rush of
expenditure was observed in some scheme heads as shown in the Table 3.22.

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Table 3.22: Rush of Expenditure

(` in crore)
Sl. Scheme Head & Name Total Qtr4 March 2022 Qtr4 March 2022
No. Budget Expenditure Expenditure Expenditure Expenditure
(%) (%)
1 30- 4515- 102- 101- 7658
4.00 4.00 4.00 100.00 100.00
Sansad Adarsh Gram Yojana
2 30- 4515-102- 101- 7659
4.00 4.00 4.00 100.00 100.00
Vidhayak Adarsh Gram Yojana
3 30- 3054- 4- 105- 4855
Pradhan Mantri Gram Sadak 600.00 330.16 240.16 55.03 40.03
Yojana
Source: Appropriation Account 2021-22
On this being pointed out, Department stated (October 2022) the following:
• 7658- Sansad Adarsh Gram Yojana & 7659- Vidhayak Adarsh Gram Yojana: Funds
provisioned under this scheme are utilised on the recommendation of honourable
ministers and department of P&RD. Since the recommendations were received in
the month of March, cent per cent expenditure was made in March 2022.
Department ensured to take care of it in the future.
• 4855- Pradhan Mantri Gram Sadak Yojana: Permission for withdrawal of funds
amounting to `330.00 crore was granted by Govt. of Chhattisgarh, P&RD in 4th
quarter (on dates 15/03/2022, 30/03/2022 & 14/02/2022) of the year 2021-22.
Accordingly, expenditure was made in last quarter.
3.8.2.5 Surrender of complete/entire budget provision
During the scrutiny of the records provided by Office of Development Commissioner,
Vikas Bhavan, it was observed that under the following heads, entire budget provision was
surrendered.
Table 3.23: Surrender of complete/entire budget provision
(` in lakh)
Sl. Budget Amount
Head Classifications
No Provision Surrendered
1 2216-03-105-701-7807-14-007 PMAY (Rural) 62,000.00 62,000.00
2515-00-102-801-7644-04-003 Rural Road Network Training &
2 10.60 10.60
Research Centre
4515-00-102-801-7644-26-003 Rural Road Network Training &
3 100.00 100.00
Research Centre
4 2515-00-102-101-7658 Sansad Adarsh Gram Yojana 8.60 8.60
5 2515-00-102-101-7659 Vidhayak Adarsh Gram Yojana 8.60 8.60
6 4515-00-102-101-6437 Gauthan Construction in Village Areas 150.00 150.00
Total 62,277.80 62,277.80
Source: Appropriation Account 2021-22

On this being pointed out, Department stated (October 2022) the following:

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• 7807- PMAY (Rural): There was no expenditure made under this head and entire
provision was surrendered, due to non-acceptance of central target of construction
of 7,81,999 houses by the State Government in 2021-22.
• 7644- Rural Road Network Training & Research Centre: No expenditure was made
due to non-release of funds by the state government this year.
• 7658- Sansad Adarsh Gram Yojana & 7659- Vidhayak Adarsh Gram Yojana:
Budget provision was made for purchase of stationaries, computers and other office
expenses but expenditure was made from funds available under other schemes.
Hence entire budget provision made under this head was not utilised.
• 6437- Gauthan Construction in Village Areas: Gauthans (cow sheds) are
constructed under the orders of District collectors, since there was no demand from
collectors this year the entire provision was surrendered.

3.8.2.6 Blockade of funds

During scrutiny of records provided by the Office of Development Commissioner, Rural
Development, it was noticed that Chhattisgarh Rural Housing Corporation (SPV created for
implementation Pradhan Mantri Awas Yojana (Gramin)) entered into an agreement with
Canara Bank for availing loan of `1000 crore in October 2018 for the constructing houses
in rural areas. The Chhattisgarh Government has given guarantee for the above loan.
However, the agreement included a clause for marking lien of 12 per cent (120 crore) of the
total loan amount. Accordingly, an amount of `126.74 crore available in 37 bank accounts
of other flagships schemes like MGNREGA, Shyama Prasad Mukherjee Rurban Mission
etc. was marked as lien due to which the liened amount could not be utilised.
On this being pointed out, Rural Development Department accepted (October 2022) this
and replied that Department is in constant talks with higher executives of the bank and has
also raised the matter in State Level Bankers Committee (SLBC) to remove the lien marked
since Chhattisgarh Government has already given ‘Deed of Guarantee’.
Thus, inclusion of 12 per cent lien in the agreement despite Government’s guarantee of
repayment of loan and marking lien on other bank accounts where funds were available for
the implementation of the other schemes restricted the government to make expenditure
under those schemes and hence lead to blocking of funds and underutilisation.

3.9 Conclusion
Budgetary assumptions of the State Government were not realistic during 2021-22
resulting in savings/excesses. Besides, budgetary control mechanism for execution and
monitoring of budget to ensure that savings are curtailed, large savings within the
Grants/Appropriations are controlled by proper re-appropriations, and anticipated
savings are identified and surrendered within the specified timeframe so that the funds

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can be utilised for developmental purposes was inadequate. Also, the percentage of
utilisation (87.37 per cent) of Budgeted funds increased during 2021-22 compared to the
previous year (81.22 per cent).
Excess expenditure of `4,059.76 crore pertaining to two Grants and three Appropriations
during 2021-22 requires regularisation from the State Legislature. Further, a total of
`13,376.63 crore is pending for regularisation from 2000-01 to 2020-21.
Supplementary Grants/ Appropriations were obtained without adequate justification. The
savings were neither surrendered on time nor explanations provided to the Accountant
General (A&E) for variations in expenditure vis-à-vis allocations. The Departments were
neither cautioned against persistent savings; nor were their budgets varied in accordance
with their ability to absorb the allocations.

3.10 Recommendations
i. Government should be more realistic in its budgetary assumptions and ensure efficient
control mechanisms to curtail savings/ excess expenditure.
ii. An appropriate control mechanism needs to be instituted by the Government to enforce
proper implementation and monitoring of budget to ensure that savings are curtailed,
large savings within the Grants/Appropriations are controlled, and anticipated savings
are identified and surrendered within the specified timeframe so that the funds can be
utilised for developmental purposes.
iii. Excess expenditure over grants approved by the Legislature is in violation of the will of
the Legislature. Therefore, excess expenditure over grants/appropriations during the
period 2000-01 to 2021-22 needs to be regularized at the earliest.
iv. The State Government needs to formulate a realistic budget based on reliable
assumptions of the needs of the Departments and their capacity to utilise the allocated
resources.
v. Controlling Officers need to be made aware of their responsibility to explain the variation
in expenditure from the allocation to facilitate proper analysis of budget and preparation
of meaningful Appropriation Accounts.

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 CHAPTER IV
QUALITY OF ACCOUNTS
AND
FINANCIAL REPORTING
PRACTICES
 Chapter IV: Quality of Accounts and Financial Reporting Practices

4.1 Introduction
A sound internal financial reporting system with relevant and reliable information
significantly contributes to efficient and effective governance by the State Government.
Compliance with financial rules, procedures and directives as well as the timeliness
and quality of reporting on the status of such compliance is, thus, one of the attributes
of good governance. Reports on compliance and controls, if effective and operational,
assist the Government in meeting its basic stewardship responsibilities, including
strategic planning and decision-making. This Chapter provides an overview of the
quality of accounts and compliance of the State Government in its financial reporting
practices, with prescribed financial rules, procedures and directives with regard to
completeness, transparency, measurement and disclosure.

4.2 Delay in Submission of Utilisation Certificates

Rule 182 of Chhattisgarh Financial Rules stipulates that where grants-in-aid (GIA) are
given for specific purposes, departmental officers concerned should obtain Utilisation
Certificates (UCs) from grantees, which, after verification, should be forwarded to
Accountant General (A&E) on or before 30 September of the following year to ensure
that the funds have been fully utilised for the intended purposes.
All the UCs (685), for the grants in aid given for specific purposes up to March 2021
and due as per extant provision, were cleared by March 2022. Further, considering the
above extant provisions on UCs, UCs for Grants-in-Aid withdrawn during the year
2021-22 were not due for this year. Hence, status of outstanding UCs as of 31 March
2022 is nil.

4.3 Pending DCC Bills

As per Rule 327 of the Chhattisgarh Financial Rules, Drawing and Disbursing Officers
(DDOs) are authorized to draw sums of money for limited purposes by preparing
Abstract Contingent (AC) bills without vouchers. Subsequently, Detailed
Countersigned Contingent (DCC) bills (vouchers in support of final expenditure) are
required to be furnished to the Accountant General (A&E) not later than 25th of the
following month in which such amounts are drawn.
As of 31 March 2022, 11 Departments of the Government of Chhattisgarh had not
submitted DCC bills for `186.85 crore against 356 AC Bills. Department-wise pending
DCC bills for the years up to 2021-22 are detailed in Appendix-4.1. Status of pending
DCC bills in respect of five major departments is given in Chart 4.1.

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Chart 4.1: Pending DCC Bills in respect of five major Departments

(` in crore)

Crop Husbandry,
`107.66, 58%
Technical Education, `2.40,
1%

Labour and Employment,

`1.76, 1%

Social Security & Welfare,

`2.51, 1%

Co-operation
Crop Husbandry
Technical Education
Co-operation, Labour and Employment
`72.15, 39%
Social Security & Welfare

Source: Data compiled by O/o the PAG (A&E), Chhattisgarh

Further, of the above five Departments, major pendency of DCC bills (63 DCC bills)
amounting ₹107.66 crore were pertaining to Crop Husbandry as shown in Chart 4.1.
During scrutiny of these DCC bills, it was noticed that all 63 ACC bills were drawn
during last two months of the financial year 2021-22, of which only one DCC bill was
received and 62 DCC bills were still pending as of November 2022.
Year-wise details of pendency of DCC bills for the years up to 2021-22 are given in
Table 4.1.
Table 4.1: Pendency in submission of DCC bills against AC bills
(` in crore)
Sl. Year Opening Balance Addition Clearance Closing Balance
No. No. Amount No. Amount No. Amount No. Amount
1 Up to 2019-20 288 184.65 277 3,275.53 250 3,258.59 315 201.59
2 2020-21 315 201.59 208 2,947.73 63 2,853.79 460 295.53
3 2021-22 460 295.53 265 2,556.55 369 2,665.23 356 186.85
Source: Data compiled by O/o the PAG (A&E), Chhattisgarh
Out of 356 DCC bills worth `186.85 crore pending for submission as of 31 March
2022, 54 DC bills (`2.41 crore), 59 DC bills (`0.49 crore) and 199 DC bills
(`183.13 crore) pertain to the years 2019-20, 2020-21 and 2021-22 respectively.
Non-submission of DCC bills within the prescribed time limit not only breaches
financial discipline but also increases the possibility of wastage/misappropriation
/malfeasance etc. and therefore, requires close monitoring by the respective DDOs for
ensuring submission of DCC bills. Further, to the extent of non-receipt of DCC bills,
the expenditure shown in the Finance Accounts cannot be asserted as correct or final.

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 Chapter IV-Quality of Accounts & Financial Reporting Practices

4.4 Timeliness and Quality of Accounts

The accounts of the State Government are compiled by the Principal Accountant
General (A&E) from the initial accounts rendered by 29 District Treasuries, 53 Forest
Divisions, 63 Rural Engineering Services and 156 Other Divisions1.
During the financial year 2021-22, there were delays in rendition of monthly accounts
ranging from one to 34 days by treasuries, one day to 50 days by public works divisions,
and one to 12 days by Forest divisions.
The State Government needs to monitor closely, and ensure the rendition of accounts
by all the account rendering authorities to the Accountant General (A&E) timely to
manage its own budget more effectively.

4.5 Outstanding balances under Suspense and DDR Heads

Suspense heads are operated in Government accounts to reflect transactions that cannot
be booked initially to their final Head of Account for some reason or the other. These
are finally cleared by minus debit or minus credit when the amount is taken to its final
Head of Account. If the amounts under suspense heads remain unadjusted, the balances
under these heads get accumulated resulting in understatement of Government’s
receipts and payments.
Remittances embrace all transactions which are adjusting Heads of Account, and the
debits or credits under these heads are eventually cleared by corresponding credit or
debit within the same or in another circle of accounting.
Finance Accounts reflect the net balances under Suspense and Remittance Heads. The
outstanding balances under these heads are worked out by aggregating the outstanding
debit and credit balances separately under various heads. Clearance of suspense and
remittance items depends on the details furnished by the State Treasuries/ Works and
Forest Divisions, etc. The Minor Head-wise position of balances under major suspense
and remittance heads for the last three years are given in Table 4.2.
Table 4.2: Balances under Suspense and Remittance Heads
(` in crore)
Major Head 8658-Suspense 2019-20 2020-21 2021-22
Minor Head Dr. Cr. Dr. Cr. Dr. Cr.
101-PAO suspense 67.35 19.50 75.32 15.59 68.32 14.46
Net Dr. 47.85 Dr. 59.73 Dr. 53.86
102-Suspense Account-Civil 30.81 0.17 29.62 0.17 1.85 1.38
Net Dr. 30.64 Dr. 29.45 Dr. 0.47
109-Reserve Bank Suspense -
0.03 0.68 1.61 0.04 0.63 1.47
Headquarters
Net Cr. 0.65 Dr. 1.57 Cr. 0.84
110-Reserve Bank Suspense -
3.57 0.01 13.62 0.01 8.36 0.02
CAO
Net Dr. 3.56 Dr. 13.61 Dr. 8.34
112-Tax Deducted at Source 0.00 71.10 0.00 63.14 0.00 84.53
Net Cr. 71.10 Dr. 63.14 Cr. 84.53

1
57 Building and Road Works Divisions, 62 Irrigation Divisions (Water Resources Department), 37
Public Health Engineering Divisions.
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113-Provident Fund
44.35 0.00 20.62 0.00 20.02 0.00
Suspense
Net Dr. 44.35 Dr. 20.62 Dr. 20.02
123-All India Service
Officer’s Group Insurance 0.00 0.19 0.00 0.27 0.06 0.38
Scheme
Net Cr. 0.19 Cr. 0.27 Cr. 0.31
129–Material Purchase
0.00 84.11 0.00 81.67 0.00 81.67
Settlement Suspense Account
Net Cr. 84.11 Cr. 81.67 Cr. 81.67
Major Head 8782-Cash Remittances
102-P.W. Remittances 74.83 42.43 74.32 9.13 6,850.00 6,779.51
Net Dr. 32.40 Dr. 65.19 Dr. 70.49
103-Forest Remittances 36.20 5.44 50.44 5.56 1,953.20 1,919.79
Net Dr. 30.76 Dr. 44.88 Dr. 33.41
Source: Data compiled by O/o the PAG (A&E), Chhattisgarh
If the amounts under these suspense heads remain unadjusted, the balances under these
heads get accumulated resulting in understatement of Government’s receipts and
payments. Further, non-clearance of outstanding balances under these heads affects
the accuracy of receipt/expenditure figures and balances under different heads of
Accounts (which are carried forward from year to year) of the State Government.

4.6 Personal Deposit (PD) Accounts

Under specific circumstances, the Government may authorise the opening of PD
accounts for operation by designated Administrators. Transfer of funds to PD accounts
is booked under the service major heads, as expenditure under the Consolidated Fund
of the State. Under Rule 543 of Treasury Code Vol. I, the Administrators are required
to close such accounts on the last working day of the year and transfer the unspent
balances back to the Consolidated Fund, with the PD accounts being reopened in the
next year, if necessary. Government of Chhattisgarh, however, did not comply with
this procedure.
Table 4.3 provides the status of funds lying in PD Accounts on the last day of the
financial year during the five-year period 2017-22.
Table 4.3: Parking of funds in Personal Deposit Accounts during 2017-22
(` in crore)
Sl. Year Opening Addition Closed during the Closing Balance
No. Balance as on during the year/Disbursements as on 31 March
1 April year/receipts 2022
Number Amount Number Amount Number Amount Number Amount
1 2017-18 281 1,892.47 02 643.80 20 779.27 263 1,757.00
2 2018-19 263 1,757.00 02 508.61 34 374.51 231 1,891.10
3 2019-20 231 1,891.10 Nil 272.05 08 577.89 223 1,585.26
4 2020-21 223 1,585.26 03 502.34 18 526.65 208 1,560.95
5 2021-22 208 1,560.95 02 287.56 71 444.13 139 1,404.38
Source: Data compiled by O/o the PAG (A&E), Chhattisgarh in respective years
As can be seen from Table 4.3, during 2017-18 to 2021-22, a total of 09 PD accounts
were opened and 151 accounts were closed, as of 31 March 2022, 139 PD accounts
were in existence and the closing balance in these accounts was `1,404.38 crore.

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 Chapter IV-Quality of Accounts & Financial Reporting Practices

The State Government drew an amount of `19.82 crore from four Major Heads during
March 2022 and deposited the same in PD accounts, the details of which are shown in
Table 4.4. Such transfers at the end of the financial year indicate that the transfers were
done to prevent lapse of budgetary provision.
Table 4.4: Details of amounts transferred to Personal Deposit Accounts during
March 2022
(` in crore)
Sl. Major
Particulars Amount
No. Head
1 District Collector, Surajpur 2029 4.58
2 Superintendent, Central Jail, Bilaspur 2056 0.14
3 Joint Director, Panchayat Welfare, Bilaspur 2235 0.09
4 Director General of Police, Police Headquarter, Raipur 2055 15.00
5 Collector, Land Records, Dhamtari 2029 0.01
Total 19.82
Source: Data compiled by O/o the PAG (A&E), Chhattisgarh

Non-transfer of unspent balances lying in PD Accounts to the Consolidated Fund of

the State entails the risk of misuse of public fund, fraud and misappropriation. Further,
the Departmental officers have not verified/ reconciled the balances with those
maintained by the Office of the Principal Accountant General (A&E), Chhattisgarh.
4.6.1 Funds relating to Land Acquisition kept in PD Accounts
Out of the closing balance of `1,404.38 crore under PD Accounts, `1,148.87 crore
were on account of non-disbursement of amount relating to land acquisition. The
treasury wise details of funds pertaining to land acquisition lying in PD accounts are
given in Table 4.5.
Table 4.5: Details of funds pertaining to Land Acquisition kept in PD Accounts
(` in crore)
Sl. Name of the Closing balance as Closing balance as Closing balance as
No. Treasury (No. of on 31 March 2020 on 31 March 2021 on 31 March 2022
accounts as of
31 March 2022)
1 Bilaspur (2) 355.37 293.46 232.13
2 Raipur (1) 259.89 256.19 256.19
3 Raigarh (1) 186.14 189.01 146.80
4 Janjgir-Champa (2) 78.73 92.01 42.31
5 Ambikapur (7) 65.78 66.08 75.06
6 Balrampur (2) 51.79 49.57 49.28
7 Gariyaband (2) 42.07 41.15 10.67
8 Korba (2) 41.44 64.93 105.56
9 Jagdalpur (1) 35.90 26.16 27.50
10 Rajnandgaon (1) 34.74 35.19 33.97
11 Mahasamund (1) 29.22 25.04 28.93
12 Kawardha (1) 13.48 9.14 9.92
13 Jashpur (1) 13.40 13.39 12.66
14 Koriya (1) 12.94 12.67 3.95
15 Surajpur (1) 11.21 5.88 14.39
16 Kanker (1) 10.90 9.09 3.76
17 Durg (1) 6.79 1.71 1.59
18 Kondagaon (1) 6.61 7.11 5.55
19 Dantewada (1) 6.44 6.24 5.18

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20 Balodabazar (1) 5.30 3.13 3.13

21 Dhamtari (1) 4.81 7.63 4.85
22 Mungeli (4) 4.54 27.53 17.49
23 Bemetara (2) 2.48 2.18 3.97
24 Bijapur (1) 0.18 0.18 0.18
25 Pendra-Marwahi (1) - 57.28 53.85
Total (40) 1,280.15 1,301.95 1,148.87
Source: Data compiled by O/o the PAG (A&E), Chhattisgarh

Information collected from the Land acquisition Officer and SDO, Raipur revealed
that one of the main reasons for funds lying in PD account pertaining to Land
acquisition was non claiming of the amount by the concerned person even after passing
of land award. Further, Directorate of Treasury and Accounts, had earlier informed
that non passing of the award of land was also one of the reasons behind non disbursal
of funds pertaining to Land acquisition from PD account.
4.6.2 Inoperative PD accounts
PD Accounts, which are inoperative for three years continuously, should be closed by
the Treasury Officer by giving notice to the Administrator of the PD account and action
for transfer of balance amount as Revenue deposit credit to Government Account
should be initiated.
Audit noticed that out of a total number of 139 PD accounts, six PD accounts having
a total balance of `1.50 crore remained inoperative for more than three years as of
31 March 2022. However, no action has been taken for closing these accounts by the
concerned Treasuries.
The State Government should review the PD accounts and take necessary action to
close the inoperative PD accounts by transferring the balances to the Consolidated
Fund.

4.7 Accounting of Transactions Relating to Central Road Fund

The List of Major and Minor Heads of Accounts prescribes the accounting procedure
relating to Central Road Fund (CRF). In terms of the extant accounting procedure, the
grants are to be initially booked as revenue receipts under Major Head “1601 Grants-
in-Aid”, and an equivalent amount is to be transferred to the Public Account under
Major Head “8449- Other Deposits- 103 Subvention from Central Road Fund”, by
contra debit to revenue expenditure Major Head “3054 Roads and Bridges”.
As against the aforesaid procedure prescribed by the Central Government, the
Government of India released `230.29 crore to Central Road Fund during 2021-22,
out of which only `125.47 crore was transferred by the State Government to “8449-
Other Deposits-103 Subvention from Central Road Fund” in the Public Account
resulting in overstatement of revenue surplus and understatement of fiscal deficit to
the tune of `104.82 crore.
Details of the fund received from the Government of India and transferred by the State

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Government to “8449-Other Deposits-103 Subvention from Central Road Fund” in the

Public Account during 2019-22 are given in Table 4.6.
Table: 4.6 Details of Central Road Fund during 2019-22
(` in crore)
Sl. Year Opening Grant Grant transferred by Closing Balance
No. Balance released GoCG to 8449-Other (Amount not
from GoI Deposit-103 transferred by GoCG)
1 2019-20 14.02 371.61 198.55 187.08
2 2020-21 187.08 234.92 296.54 125.46
3 2021-22 125.46 230.29 125.47 230.28
Source: Data compiled by O/o the PAG (A&E), Chhattisgarh

4.7.1 Infrastructure Development Fund

Chhattisgarh (Adhosanrachna Vikas Evam Paryavaran) Upkar Adhiniyam, 2005
provides that cess on land shall be levied for raising funds to implement infrastructure
development projects and environment improvement projects. The Act is extended to
the whole of State of Chhattisgarh and is in force since 27 May 2005. As per the Act,
Infrastructure Development Cess (IDC) shall be levied and collected on all lands on
which land revenue or rent is levied. The IDC so collected should be transferred to the
Infrastructure Development Fund (IDF), from which expenditure on infrastructure
development projects is made. Audit scrutiny, revealed that, the State Government
collected IDC of `161.63 crore in 2020-21 and same amount was not transferred to IDF
during 2021-22. The un-transferred balance of `161.63 crore contributes to
undischarged liability of the State Government. Such un-transferred balances resulted
in overstatement of the revenue surplus and understatement of fiscal deficit. Further,
non-transfer of cess to Infrastructure Development Fund for implementation of
developments projects also defeated the purpose of creation of fund.
4.7.2 Environment Fund
As per provision made under Chhattisgarh (Adhosanrachna Vikas Evam Paryavaran)
Upkar Adhiniyam, 2005, an Environment Fund shall be established in GoCG.
Environment cess so collected should be transferred to the Environment Fund for
implementation of environment projects in the State. Scrutiny of the relevant records
revealed that `161.63 crore was collected as Environment cess in 2020-21 and same
amount was also not transferred to Environment Fund, during 2021-22 by GoCG. Non
transfer of the collected cess to Environment Fund, resulted in overstatement of the
revenue surplus and understatement of fiscal deficit. Further, non-transfer of cess to
Environment Fund for implementation of environment projects also defeated the
purpose of creation of fund.

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4.8 Funds outside Public Account of the State

GoCG constituted Building and other construction Workers Welfare Board
(September 2008). The Board collects Building and other construction Workers
Welfare (Labour cess) at the rate of one per cent of cost of construction from the
employers and utilizes it for the implementation of its schemes as per BOCW Welfare
Cess Act 1996. Scrutiny of records of the Chhattisgarh Building and Other
Construction Workers Welfare Board revealed that cess collected by various agencies
were sent through cheques/drafts to the Board or deposited in the savings bank account
of the Board opened for the purpose through District Labour Offices. However, Labour
Cess collected by four State Government Departments2 has been directly booked under
Major Head-8443-Civil Deposit-108-Public Works Deposits. Further, since Minor
Head-Public Works Deposits does not have any further sub-heads below it, it is not
possible to segregate the amounts paid to the Board. Thus, there is no uniformity in
the accounting procedures followed by Government departments and private agencies
in GoCG for collection and transfer of Labour cess to the Board in the absence of
specific rules and provisions for accounting the labour cess.
4.8.1 Year-wise receipt and utilisation of Labour Cess
The year-wise position of receipt and expenditure of cess for the period 2019-20 to
2021-22 is detailed in Table 4.7.
Table 4.7: Year-wise receipt and utilisation of Labour Cess
(` in crore)
Sl. YearOpening Receipts Total Expenditure Closing
No. Balance Registratio Labour cess Interest fund (including balance
n charges received in on available establishment
and Other Board deposits charges)
Receipt accounts
1 2019-20 300.53 9.93 163.62 21.81 495.89 115.09 380.80
2 2020-21 380.80 0.73 172.34 31.39 585.26 108.10 477.16
3 2021-22 477.16 0.13 191.07 17.20 685.56 92.24 593.32
Source: Information received from the CG Construction & Labour Welfare Board
Out of total expenditure of `92.24 crore during 2021-22, the Board incurred an
expenditure of `88.43 crore (95.87 per cent) on welfare schemes and `3.81 crore (4.13
per cent) on establishment charges.
The State Government has operated various schemes/activities like pensions, maternity
benefits, advance for construction of houses, funeral assistance, medical assistance,
assistance for encouragement in sports for students, financial assistance for
education/marriage/skill development, distribution of LPG gas connection and stove etc.
for beneficiaries from the Building and Other Construction Workers’ Welfare Fund
(BOCWWF). Details of expenditure on these schemes during the period from 2018-19
to 2021-22 are depicted in Table 4.8.

2
Public Works Department, Public Health Engineering, Water Resources Department and Panchayat
& Rural Development Department.

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Table 4.8 Expenditure on schemes from available fund

(` in crore)
Sl. Year Avail- Schemes Actual Registered Workers Percentage
No. able operated expen- workers at covered
fund No. Allot- diture the end of Workers Fund Fund
ment on the year covered utilised utilised
of schemes against against
Fund allot- avail-
ment ability
1 2018-19 494.10 27 342.51 166.98 19,17,281 9,92,847 51.78 48.75 33.79
2 2019-20 495.89 21 367.32 96.57 20,00,567 3,90,818 19.54 26.29 19.47
3 2020-21 585.26 22 382.68 105.06 21,15,415 1,69,239 8.00 27.45 17.95
4 2021-22 685.56 25 409.70 88.43 21,66,576 3,90,139 18.00 21.58 12.90
Source: Information from the CG Building & other construction Workers Welfare Board
The Board could utilise only 12.90 per cent of available funds and only 18 per cent of
registered workers were benefited under various schemes during 2021-22.
Against the allocated amount of `409.70 crore during the financial year 2021-22, the
Board could utilize only `92.24 crore leaving `317.46 crore unutilized which resulted
in depriving of the benefits of various schemes to the registered workers.
Audit scrutiny revealed that `40.60 crore of labour cess was collected by the State
Government departments and `42.44 crore (includes balance of previous years) was
transferred to the Board and balance of `4.28 crore has been kept under Public
Account Major Head 8443.
Details of short transfer of cess by these four departments are shown in Table 4.9.
Table 4.9: Departments-wise short transfer of labour Cess to the Board
(` in crore)
Sl. Name of the Department Short
No. transfer
1 Public Works Department 3.89
2 Public Health Engineering Department 0.24
3 Rural Engineering Services (Panchayat and Rural Development Department) 0.12
4 Rural Development Division (Panchayat and Rural Development Department) 0.03
Total 4.28

4.9 Booking under Minor Head 800

Minor Head–800 relating to Other Receipts and Other Expenditure is intended to be
operated only when the appropriate Minor Head has not been provided in the accounts.
Routine operation of Minor Head–800 is to be discouraged, since it renders the accounts
opaque and it does not disclose the schemes/programmes, etc. to which it relates.
Receipts of `7,427.94 crore (constituting 9.33 per cent of the total revenue receipts of
`79,652.03 crore of the State during 2021-22), recorded under 43 revenue receipts
Major Heads, were classified under the Minor Head ‘800-Other Receipts’.
Similarly, an expenditure of `1,137.59 crore (constituting 1.33 per cent of total revenue
and capital expenditure of `85,514.23 crore of the State during 2021-22), recorded

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under 49 Revenue and Capital expenditure Major Heads, was classified under the Minor
Head ‘800-Other Expenditure’.
The extent of operation of Minor Head 800 for receipts and expenditure, as a percentage
of Total Receipts and Expenditure during 2017-22, is given in Charts 4.2 and 4.3.
Chart 4.2: Operation of Minor Head 800-Other Receipts during 2017-22
90000 10.00
9.33%
80000 9.00

70000 8.00
4.22% 4.80% 7.00
60000 5.40% 79,652
4.23% 65,095

Percentage
` in crore

59,647 63,869 63,176 6.00

50000
5.00
40000
4.00
30000
3.00
20000 2.00
7,428
10000 2,523 2,750 3,447 3,031 1.00
0 0.00
2017-18 2018-19 2019-20 2020-21 2021-22

Revenue receipts classified under Minor Head 800-Other receipts

Total revenue receipts
Extent of operation of Minor Head 800 as a percentage of total revenue receipts

Source: Finance Accounts of the respective years

Chart 4.3: Operation of Minor Head 800-Other expenditure during 2017-22

90000 2.50
2.27% 1.41% 1.19% 1.61% 1.33%
80000 85,514
70000 82,044 2.00
79,057
69,712 73,315
60000
Percentage
` in crore

1.50
50000
40000
1.00
30000
20000 0.50
10000
1,580 1,034 977 1,269 1,138
0 0.00
2017-18 2018-19 2019-20 2020-21 2021-22

Expenditure classified under Minor Head 800-Other expenditure

Total expenditure
Extent of operation of Minor Head 800 as a percentage of total expenditure

Source: Finance Accounts of the respective years

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 Chapter IV-Quality of Accounts & Financial Reporting Practices

This issue has been flagged in the SFAR every year. There has been a major increase
in the amount classified under this Minor Head on the Receipts side during 2021-22
(9.33 per cent) as compared to the previous year (4.80 per cent). On the expenditure
side, it decreased from 1.61 per cent in 2020-21 to 1.33 per cent of total expenditure
during 2021-22. The fact that such substantial proportion of the receipts and
expenditure are booked under Minor Head 800 is a cause for serious concern, since it
severely impacts transparency of accounts.
4.9.1 Booking under Minor Head - 800 - other receipts for more than
`50 crore
Routine operation of Minor Head–800 is to be discouraged, since it renders the accounts
opaque and it does not disclose the schemes/programmes, etc. to which it relates.
However, during test check of the related records, it was noticed that in some Major
Heads, operation of Minor Head 800 - other receipts was carried out as a routine nature
and substantial amount (i.e. more than `50 crore) was booked under these Minor Head
for last five years as mentioned in the Table 4.10. However, persistent booking under
Minor Head 800-other expenditure for last five years for more than `50 crore has not
been noticed.
Table 4.10: Details of operation of Minor Head 800 for booking of amount for
more than `50 crore in last five years
(` in crore)
Sl. Receipt
Major Head
No. 2017-18 2018-19 2019-20 2020-21 2021-22
1 0029 99.68 97.56 85.60 269.86 335.73
2 0039 874.31 981.67 1,037.89 1,110.10 1,075.84
3 0041 1,071.97 321.84 63.85 190.66 186.58
4 0043 224.56 240.61 253.04 260.13 561.94
5 0853 2,000.98 791.01 1,386.47 545.51 4,879.34
Source: Data furnished by O/o the PAG (A&E), Raipur
Such substantial proportion of the receipts are booked under Minor Head 800
continuously for last five years is a cause for serious concern, since it severely impacts
transparency of accounts.
4.9.2 Booking of Royalty under Minor Head - 800 - other receipts
As per the List of Major and Minor Heads of Account of Union and States, the royalties
realised from mines should be classified under Major Head 0853 Non-Ferrous Mining
and Metallurgical Industries-Minor Head 102- Mineral Concession fees, rents and
royalties.
During audit test check of challans in respect of Major and Minor Head 0853-800, it
was noticed that as against total revenue receipts of `12,305.38 crore under Major Head
0853-800 during 2021-22, receipts of royalties of `1.02 crore was booked under Minor
Head- 800-other receipts instead of Minor Head 102-Mineral Concession fees, rents
and royalties as prescribed in the List of Major and Minor Heads of Account. The details
are shown in Table 4.11.

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Table: 4.11: Details of revenue receipts booked erroneously under Minor Head
800
(` in crore)
Sl. No. Name of No. of Cases Total Receipts booked under 800
Treasury/Bank
1. Raipur 83 0.37
2. Bemtra 01 0.20
3. Surajpur 09 0.02
4. Baikunthpur 13 0.09
5. Bilaspur 03 0.01
6. Bijapur 03 0.04
7. Kondagaun 03 0.02
8. Raigardh 01 0.07
9. Kanker 01 0.01
10. Janjgir-Champa 01 0.01
11. Dantewada 04 0.03
12. Balrampur 04 0.01
13. Baloda-Bazaar 02 0.11
14. Mungeli 02 0.03
Total 130 1.02
Source: Data furnished by O/o the PAG (A&E), Raipur

Rule 56(2) of Chhattisgarh Minor Minerals Rules, 1996 read with Chhattisgarh
Minerals Resources Department’s order (October, 2012) states that 33 per cent of total
royalty revenue shall be disbursed to the Panchayat and Rural Development
Department and remaining 67 per cent of total royalty revenue shall be disbursed to
the concerned individual Panchayat and Janpad Panchayat. Considering the above
stated provisions, due to misclassifications of Minor Head 102 (Mineral Concession
fees rents and royalties) under Major Head 0853 (Non-Ferrous Mining and
Metallurgical Industries) to 800 (Other receipts), a substantial revenue loss to the Gram
Panchayat and Janpad Panchayat cannot be ruled out.

4.10 Non-Reconciliation of Departmental Figures

Financial Rules stipulate that receipts and expenditure recorded in the books of
accounts of Controlling Officers (COs) be reconciled by them every month during the
financial year with those recorded in the books of the Accountant General (Accounts
and Entitlements). This is to enable the COs to exercise effective control over
expenditure and manage their budgetary allocation efficiently, and ensure accuracy of
their accounts.
While 56.02 per cent of the receipts and 90.12 per cent of the disbursements were
reconciled during 2020-21, these figures are 62.93 per cent for receipts and 87.06 per
cent in respect of disbursements for the year 2021-22.
The status of reconciliation of receipts and expenditure by the COs during the three
year period 2019-22 is shown in Chart 4.4.

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 Chapter IV-Quality of Accounts & Financial Reporting Practices

Chart 4.4: Status of reconciliation during the three years 2019-22

(` in crore)

2021-22 92,877.69
Expenditure 80,859.21

2020-21 87,127.83
78,520.40

2019-20 90,794.89
48,667.61

2021-22 94,843.22
59,684.84
Receipts

2020-21 84,866.84
47,539.69

2019-20 83,717.84
71,783.68

0.00 20,000.00 40,000.00 60,000.00 80,000.00 1,00,000.00

Total Receipts/Expenditure Reconciled Receipts/Expenditure

Source: Data compiled by O/o the PAG (A&E), Chhattisgarh

The details relating to the number of COs and the extent of reconciliation during the
last three years are given in Table 4.12.
Table 4.12: Status of Reconciliation of Receipts and Expenditure figures
(` in crore)
Year Total No. Fully Partially Not Total Reconciled Percentage of
of Reconciled Reconciled reconciled Receipts/ Receipts/ Reconciliation
Controlling at all Expenditure Expenditure
Officers
Receipts
2019-20 40 14 14 12 83,717.84 71,783.68 85.74
2020-21 40 04 31 05 84,866.84 47,539.69 56.02
2021-22 40 03 31 06 94,843.22 59,684.84 62.93
Expenditure
2019-20 94 19 39 36 90,794.89 48,667.61 53.60
2020-21 94 61 23 10 87,127.83 78,520.40 90.12
2021-22 94 42 48 04 92,877.69 80,859.21 87.06
Source: Data compiled by O/o the PAG (A&E), Raipur

Reconciliation and verification of figures is an important tool of financial

management. Failure to exercise/ adhere to the codal provisions and executive
instructions in this regard not only results in misclassification and incorrect booking
of receipts and expenditure in the accounts, but also defeats the objective of budgetary
process.

4.11 Reconciliation of Cash Balances

As of 31 March 2022, there was a difference of `24.64 crore (Net credit), between the
Cash Balance of the State Government, as per the books of Accounts of the Accountant
General (A&E), and the Cash Balance as reported by the Reserve Bank of India. This
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difference was due to erroneous reporting by the accredited Banks to the Central
Accounts Section, Reserve Bank of India, Nagpur which is responsible for maintaining
the cash balance of the State Government.

4.12 Compliance with Indian Government Accounting Standards

Government Accounting Standards Advisory Board (GASAB) set up by the
Comptroller and Auditor General of India in the year 2002 has been formulating
Standards for Government accounting and financial reporting, to enhance
accountability mechanisms. As at end of March 2020, three Indian Government
Accounting Standards (IGAS) have been notified. The details of these Standards and
the extent of compliance with these by the Government of Chhattisgarh in its financial
statements for the year 2021-22 are given in Table 4.13.
Table 4.13: Compliance with Indian Government Accounting Standards
Sl.
IGAS Essence of IGAS Status Impact of non-compliance
No.
This standard
requires the The State Government
government to disclosed about 11 out of 13
disclose the guarantee institutions i.e.
IGAS 1- maximum amount of (Eighty Five per cent) related
Guarantees given guarantees given to guarantees in prescribed
Partially
1 by government– during the year in its format of IGAS-1 during the
Complied
Disclosure financial statements year 2021-22, along with
requirements along with additions, additions during the year,
deletions, invoked, discharged, invoked and
discharged and outstanding as of end of
outstanding at the March 2022.
end of the year.
The State Government has
disbursed GiA amounting to
`2,227.04 crore for creation
Grants-in-Aid are to of capital Assets and
be classified as accounted as Capital
revenue expenditure Expenditure instead of
IGAS 2- in the accounts of the Revenue Expenditure. The
Accounting and Partially
2 Classification of grantor and as State Government has
complied
Grants-in-Aid revenue receipts in furnished the information
the accounts of the relating to GiA disbursed
grantee, irrespective during 2021-22 as shown in
of the end use. Statement No. 10 and
Appendix No. III of the
Finance Account as per the
prescribed format of IGAS-2.

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 Chapter IV-Quality of Accounts & Financial Reporting Practices

This Standard relates

to recognition,
60 out of 94 Budget
measurement,
Controlling officers i.e. 64
valuation and
per cent have furnished the
reporting in respect
information relating to loans
IGAS 3- Loans & of loans and
Partially and advances made by the
3 Advances made by advances made by
complied Government in prescribed
Government the Government in
format of IGAS-3. Non-
its financial
compliance to IGAS-3 leads
statements to ensure
to opaqueness in accounting
complete, accurate
practices.
and uniform
accounting practices

4.13 Submission of Accounts/Separate Audit Reports of Autonomous

Bodies
The State Government has set up several Autonomous Bodies (ABs), out of which
audit of only four Autonomous Bodies has been entrusted to the Comptroller &
Auditor General of India. The status of pending accounts as on June 2022 is given in
Table 4.14.
Table: 4.14: Arrears of accounts of Autonomous Bodies/Authorities
Sl. Name of the Body/Authority Account Number of accounts pending
No. pending since up to Financial Year
1. State CAMPA, Chhattisgarh State 2021-22 1
2. Chhattisgarh State and District Legal 2009-10 683
Services Authority
3. Chhattisgarh State Housing Board 2015-16 6

4.14 Cases of losses and defalcation, etc.

Rules 22 and 23 of the CGFC Vol.-I, provide that each and every case of loss,
misappropriation and defalcation of public fund will have to be reported to the
Accountant General. Further, Rule 24 of the Code provides that any serious loss of
immovable property such as buildings, roads and bridges caused by fire, flood, storm,
earthquake or any other natural calamity should be reported to the Accountant General.
This is followed by detailed investigation by the departments and report thereof citing
reasons for such losses and measures/action taken to prevent recurrence.
As of 31 March 2022, a total of 2,163 cases amounting to `125.58 crore pending in
various departments of the State Government, were awaiting conclusive investigation
and settlement. The department-wise and category-wise break-up of pending cases is
given in Appendix 4.2. Year-wise analysis of cases is shown in Appendix 4.3. The age-
profile of the pending cases and the number of cases pending in each category viz. theft
and loss are summarised in Table 4.15.

3
Accounts of District Legal Services Authority, Mungeli was not received since its inception in
2009-10.
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Table 4.15: Profile of losses and defalcation, etc.

(` in crore)
Age-profile of the pending cases Nature of the pending cases
Range in Number of Amount Nature of the case Number Amount
years cases involved of cases involved
0–5 316 5.89
5 – 10 381 72.33 Theft 124 0.54
10 – 15 334 31.69 Loss of 1,978 119.76
15 – 20 234 4.88 property/material
20 – 25 209 4.60 Defalcation 61 5.28
25 & 689 6.19
Total pending
above 2,163 125.58
cases
Total 2,163 125.58
Source: Cases reported by the departments of the State Government
Out of 2,163 cases, Forest Department and School Education Department had 562 and
39 cases respectively which were pending for more than 25 years. First Information
Reports were lodged in 338 cases out of 2,163 cases.
Further, it was also observed that in six cases, various departments had recovered
`1.91 lakh during 2021-22 as detailed in Appendix 4.4.

4.15 Off Budget Borrowing

The State Government PSUs/Corporations/Other bodies may take loans to implement
various schemes/programmes of the Government. The repayment of such loans may be
the responsibility of the State Government from its budgetary resources. Such
borrowings will impact the revenue deficit and fiscal deficit of the State Government.
Creating such liabilities without disclosing them in the budget, raises questions both on
transparency and inter-generational equity. Such off-budget borrowings are not taken
into the disclosure Statements in the budget documents, nor do these have Legislative
approval. Five such instances of off-budget borrowings have been discussed below:
a) Government of Chhattisgarh issued guarantees to Chhattisgarh Housing Board
(CHB) for availing loans of `800 crore from Canara Bank for construction of
6,424 residential buildings for Government Officials and `195.00 crore in 2017-
18 from Allahabad Bank for purchasing 728 flats. Against the total guaranteed
amount, CHB availed loan of `800 crore and `195 crore respectively up to 31
March 2022. The State Government has repaid interest and principal of ₹333.23
crore through budget on the above loans.
b) Similarly, Government also issued guarantees to Chhattisgarh Police Housing
Corporation Limited (CPHCL) for availing loans of `800 crore from two
financial institutions i.e. Allahabad Bank (`400 crore) and Canara Bank (`400
crore) for construction of 10,000 residential houses for Police Officials in
June/July 2017 (Valid up to 2027). CPHCL has availed total loan of
₹644.54 crore up to March 2022 against the maximum guaranteed amount of
₹800 crore. The State Government has repaid interest of ₹201.19 crore through
budget on the above loans.

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 Chapter IV-Quality of Accounts & Financial Reporting Practices

c) Further, Government issued guarantee to State Urban Development Agency

(SUDA) for availing loans of `3,357 crore from financial institutions for
payment of State share in “Pradhan Mantri Awaas Yojana” (PMAY-Urban) in
February 2018 (Valid up to 2022). Out of which, SUDA availed loan of
`825 crore up to 31 March 2022. The State Government has made repayment
of ₹201.57 crore towards interest and principal of above loan from the Budget.
d) Government of Chhattisgarh issued guarantee to avail loan of `5,225 crore
(`1,225 crore for construction of 12 roads and `4,000 crore for construction of
741 Roads and Bridges) from Banks or Financial institutions to Chhattisgarh
Road and Infrastructure Development Corporation Limited (CGRIDCL) in
December 2020. Out of which, CGRIDCL has availed loan of `126.39 crore as
of 31 March 2022. The State Government has not released any amount to
CGRIDCL for repayment of the Principal and Interest amount. However,
Company has repaid `0.33 crore to Bank.
e) Chhattisgarh Government issued guarantees of `3,427.28 crore (valid up to
2034-35) to Chhattisgarh Rural Housing Corporation (January 2018) for
availing loans from the banks/financial institutions in order to implement
Pradhan Mantri Awaas Yojna-Grameen in Chhattisgarh. Against the above
Guarantee the Corporation has availed the total loans of `1,792.44 crore (`1,000
crore from Canara Bank and `792.44 crore from NABARD). The State
Government has released `375.27 crore for repayment of Principal amount up
to 31 March 2022.
It is evident from the above instances that use of borrowed funds raised through other
entities for financing the expenditure of the State Government not only led to
understatement of revenue/capital expenditure and revenue/fiscal deficit but also
ensured that borrowings remains outside the computation of debt in the accounts of the
State Government. The burden of current expenditure would get shifted to future
generations to the extent of service of debt through budgetary support in subsequent
years. The State Government has a net off budget liability of `3,872.80 crore (3.91 per
cent of total budgeted liabilities) in addition to the total budgeted liabilities of
`99,172.89 crore outstanding as of 31 March 2022. Thus, the total liability of the state
stood at `1,03,045.69 crore. Budget documents of the State Government for the year
2017-18 to 2021-22 did not disclose any off-budget borrowings.

4.16 Funds transferred directly to State implementing agencies

During the year 2021-22, an amount of `14,308.40 crore was transferred directly to the
implementing agencies in Chhattisgarh as per Public Financial Management System
Portal of Controller General of Accounts (CGA). The trends of transfer of such amount
from 2018-19 to 2021-22 is shown in Chart 4.5.

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Chart 4.5: Trends of transfer of Grants directly to state implementing agencies

from 2018-19 to 2021-22
(` in crore)
15,000
14,000 14308.40
13,000
12,000
11,000 12,538.27
10,000
9,000 7,450.85
8,000 6,381.79
7,000
6,000
2018-19 2019-20 2020-21 2021-22

Trends of Transfer of Grants

Source: Data compiled by O/o the PAG (A&E), Chhattisgarh

As compared to previous year the direct transfer of fund to the implementing agencies
has increased during this year by `1,770.13 crore (14.12 per cent).

4.17 Single Nodal Accounts

With a view to have more effective cash management and bring more efficiency in the
public expenditure management better monitoring of availability and utilization of
funds released to the States under the Centrally Sponsored Schemes (CSS) the
Government of India issued directions (July 2021) that every State Government will
designate a Single Nodal Agency for implementing each CSS. The Single Nodal
Agency will open a Single Nodal Account (SNA) for each CSS at the State level in a
Scheduled Commercial Bank authorized to conduct government business by the State
Government. The information collected revealed that there were 114 schemes under 20
departments, which were maintaining Single Nodal Accounts. The information on SNA
received from eight Departments is as shown in Table 4.16.
Table 4.16: Details on operationalization status of Single Nodal Account
(` in crore)
Sr. No. Date of
Name of the Closing balance as
Scheme Name opening of
Department of 31 March, 2022
SNA
Indira Gandhi National Old Age
-
Pension
Indira Gandhi National Widow
-
1 Social Welfare Pension 10.08.2018
Indira Gandhi National Disability
-
Pension
National Family Benefit -
O/o the Mission
2 Director, Jal Jal Jeevan Mission 258.75 29.11.2021
Jeevan Mission
Fisheries Pradhan Mantri Matsya Sampada
3 - 03.08.2021
Department, Yojna

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 Chapter IV-Quality of Accounts & Financial Reporting Practices

Chhattisgarh
145.11 23.09.2021
National Health Mission
Health and
4 0.07 30.12.2021
Family Welfare National Urban Health Mission
PM ABHIM, Chhattisgarh 18.76 24.08.2021
Rashtriya Krishi Vikas Yojna 22.11.2021
7.35
(RAFTAAR)
November,
Pradhanmantri Krishi Sichai Yojna 14.20 2021

Submission on Agriculture 06.08.2021

-
Extension (Atma)
Krishi Yantrikikaran Mission 39.75 10.02.2022
Subsidy
Paramparagat Krishi Vikas Yojna 1.19 06.08.2021
(PKVY)
Directorate of
5 Targeting Rice Fallow Area 22.11.2021
Agriculture -
(TRFA)
Bringing Green Revolution in 0.46 22.11.2021
Eastern India (BGREI)
National Food Security Mission 0.64 22.11.2021
(Oilseed and Oilpalm)
Submission on Seeds and Planting June, 2021
-
Material (SMSP)
0.54 22.12.2021
NMSA-Soil Health Management
22.54 20.12.2021
Bhartiya Prakritik Krishi Paddhatti
Directorate of Pradhan Mantri Formalisation of
6 Industry Micro Food Processing Enterprises 9.73 11.08.2020
(PMFME)
Directorate of
7 National Ayush Mission 24.30 12.08.2021
AYUSH
Poshan Abhiyan Sanksham-2
47.48 20.07.2021
(5354)
Swadhar Greh (7754) 0.54 30.07.2021
Ujjawala Pariyojna (7815) 0.10 30.07.2021
Directorate of Pradhan Mantri Matru Vandana
- 30.07.2021
Women and Yojna (7884)
8 Mission Vatsalya (Child Protection
Child
Development Services and Child Welfare 55.72 26.07.2021
Services)
ICDS Supervision Saksham -2 2.47 20.07.2021
ICDS Aganwadi Services (9044) 159.49 20.07.2021
ICDS Nutrition Saksham-2 (9050) 1.19 20.07.2021
Adolscent Girls Saksham-2 (7361) - 20.07.2021
Sources: Information received from the State Government Department

4.18 Follow-up on Audit Reports

State Finances Audit Report is being presented to the State Legislature from 2008-09
onwards. However, the Public Accounts Committee (PAC) of Chhattisgarh State
Legislative Assembly is yet to take up these reports for discussion (September 2022).

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4.19 Conclusion
Non-submission of DCC bills by Departments for funds drawn for specific
developmental programmes/ projects and non-submission of accounts by public sector
entities was violative of prescribed financial rules and directives. This points to
inadequate internal controls and deficient monitoring mechanism of the State
Government.
Operation of omnibus Minor Head 800 – ‘Other Receipts’ (`7,427.94 crore) and
‘Other Expenditure’ (`1,137.59 crore) affected transparency in financial reporting and
obscured proper analysis of allocative priorities and quality of expenditure.
Non-reconciliation of receipts and expenditure booked by the Controlling Officers of
the State with the figures of the Principal Accountant General (A&E) reflects poorly
on the internal control system within the Government and raises concerns relating to
accuracy of accounts.
Government of Chhattisgarh has not disclosed in the budget, its off budget borrowing
with regard to the loans obtained by various public sector entities at its behest for
implementation of various socio-economic developmental programmes.

4.20 Recommendations
i. The State Government needs to institute a rigorous monitoring mechanism to
ensure that the Departments comply with the prescribed rules and procedures with
regard to submission of DCC bills to the Principal Accountant General (A&E) within
the stipulated timeframe.
ii. All the accounts rendering units need to be instructed to submit the complete
accounts as per the prescribed time schedule and furnish the missing/incomplete details
to enable clearance of suspense and remittances transactions in a time bound manner.
iii. The State Government should discourage the use of omnibus Minor Head 800
and chalk out a specific timeframe, in consultation with the Principal Accountant
General (A&E), to identify appropriate Heads of Account to classify the transactions
correctly in the books of accounts.
iv. The State Government should disclose all its liabilities, including off budget
borrowings transparently while presenting its budget, to enable proper appreciation of
its financial position.
v. Internal control mechanism needs to be strengthened and the Government
needs to ensure that the Controlling Officers reconcile their figures of receipts and
expenditure with those of the Principal Accountant General (A&E) at prescribed
intervals, to provide transparency and accuracy in accounting of Government
transactions.

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 CHAPTER V
FINANCIAL PERFORMANCE
OF STATE PUBLIC SECTOR
UNDERTAKINGS
 Chapter V: Financial Performance of State Public Sector
Undertakings

5.1 Introduction
This Chapter presents the summary of financial performance of State Public Sector
Undertakings of the Government of Chhattisgarh for the year 2021-22. The term State
Public Sector Undertakings (PSUs) encompasses the Government Companies set up
under the Companies Act, 2013 and the Statutory Corporations set up under Statutes
enacted by the Parliament/State Legislature.
This Chapter gives the summarised position of financial performance of the State
Government Companies and Corporations as revealed from their accounts. Significant
comments1 issued as a result of supplementary audit/sole audit of the financial
statements of the Government Companies/Corporations conducted by the Comptroller
and Auditor General of India for the year 2021-22 (or of earlier years which were
finalised during the current year) have been covered in this Report.

5.2 Definition of Government Companies/Corporations

A Government Company is defined in Section 2(45) of the Companies Act, 2013, as a
Company in which not less than 51 per cent of the paid-up share capital is held by
Central Government, or by any State Government or Governments, or partly by the
Central Government and partly by one or more State Governments, and includes a
Company which is a subsidiary of a Government Company.
A Statutory Corporation is set up under a statute enacted by Parliament/ State
Legislature.

5.3 Mandate of audit

Audit of Government Companies is conducted by the Comptroller and Auditor
General of India under the provisions of Section 143(5) to 143(7) of the Companies
Act, 2013 read with Section 19 of Comptroller and Auditor General of India's (Duties,
Powers and Conditions of Service) Act, 1971 and the Regulations made there under.
Under the Companies Act, 2013, the Comptroller and Auditor General of India
appoints the Chartered Accountants as Statutory Auditors for companies and gives
directions on the manner in which the accounts are to be audited. In addition, the
Comptroller and Auditor General of India have the right to conduct a supplementary
audit.
The statutes governing Statutory Corporations require the Comptroller and Auditor
General of India to conduct audit of their accounts either as a sole auditor or to
conduct supplementary audit after the audit is conducted by the Chartered
Accountants appointed under the statutes.

1
Based on the certificates finalized/issued from 1 October 2021 to 30 September 2022.

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5.4 State Public Sector Undertakings and their contribution to the

Gross State Domestic Product
As on 31 March 2022, there were 30 PSUs in Chhattisgarh State (including
29 Government Companies and one2 Statutory Corporation) under the audit
jurisdiction of the Comptroller and Auditor General of India. None of the PSUs were
listed on the stock exchange (s).
Out of the 30 State PSUs, 28 were working PSUs (27 Companies and one Statutory
Corporation) and two PSUs3 were inactive. Out of the 28 working PSUs, only 25
PSUs (24 Companies and one Statutory Corporation), whose accounts were in arrears
for two or less years as on 30 September 2022 have been considered for detailed
analysis of financial performances in this Report. Three PSUs whose accounts were in
arrears for three or more years (two PSUs4) or first accounts were not submitted (one
PSU5) have not been considered for detailed analysis in this Report (Appendix 5.1).
A ratio of turnover of the PSUs to the Gross State Domestic Product (GSDP) shows
the extent of activities of the PSUs in the State economy. On the basis of nature of
activities undertaken, these 25 PSUs have been categorised into six sectors. The
turnover (` 42,147.03 crore) of these 25 PSUs for 2021-22 was 10.53 per cent of the
GSDP of Chhattisgarh (`4,00,061 crore) for the year. Power sector alone accounts for
approximately 57 percent of the total turnover of the PSUs during 2021-22 (Table
5.1).
Table 5.1: Sector wise turnover vis-a-vis share of turnover of Public Sector
Undertakings in Gross State Domestic Product of Chhattisgarh during 2021-22

Sl. Number of Turnover for Share of

No.
Name of the Sector PSUs the year Turnover in
(` in crore) GSDP (%)
1 Energy and Power 6 23,936.59 5.98
2 Infrastructure 5 92.87 0.02
3 Finance 1 2.77 0.00
4 Agriculture and Allied Industries 2 674.20 0.17
5 Services 9 17,431.93 4.36
6 Others 2 8.67 0.00
Total 25 42,147.03 10.53
Source: Information compiled on the latest financial statements of PSUs.

5.5 Audit of Public Sector Undertakings including Government

Companies and Corporations
The Comptroller and Auditor General of India, as per his mandate, conducts
supplementary audit of the annual accounts of all 30 Companies (29 Government
Companies and one Statutory Corporation). The status of submission of financial

2
Chhattisgarh State Warehousing Corporation (CSWC).
3
Chhattisgarh Sondiha Coal Company Limited, CMDC ICPL Coal Limited
4
Chhattisgarh State Industrial Development Corporation Limited, Chhattisgarh Infrastructure
Development Corporation
5
Chhattisgarh State Information Infrastructure Corporation Limited

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statements by the PSUs as on 30 September 2022 is presented in Table 5.2.

Table 5.2: Status of submission of financial statements by PSUs
Type of PSUs Total Status of finalisation of Accounts by PSUs Number of PSUs
Number as of 30 September 2022 whose accounts
of PSUs Accounts Accounts Accounts Total were in arrears
for for up to (No. of Accounts
2021-22 2020-21 2019-20 in arrears)
Government Companies 27 6 13 8 27 21 (35)
Statutory Corporation 1 - 1 - 1 1 (1)
Total Working PSUs 28 6 14 8 28 22 (36)
Inactive PSUs 2 - 1 1 2 2 (4)
Total 30 6 15 9 30 24 (40)
Source: Annual accounts submitted by PSUs

The details of PSUs whose financial statement are pending as on 30 September 2022
are shown in Appendix 5.1 (b).
The summary of financial performance based on the latest finalized accounts of 25
PSUs covered in this report is detailed in Table 5.3.
Table 5.3: Summary of financial performance of PSUs (Government Companies
and Statutory Corporation)
Summary of financial performance of PSUs
Total Number of State PSUs 30
Number of PSUs covered in this Report 25
Paid up capital (25 PSUs) `6,903.31 crore
Long term loans (25 PSUs) `12,044.02 crore
Net profit (11 PSUs) `932.01 crore
Net loss (11 PSUs) `439.99 crore
Zero Profit / loss (Three PSUs) --
Dividend declared (Two PSUs) `3.84 crore
Net worth (25 PSUs) `2,808.33 crore
Source: Compiled on the basis of latest finalized accounts of PSUs

5.6 Investment in Public Sector Undertakings and Budgetary

support
5.6.1 Equity holding and loans
The Government investments in the PSUs as equity and loans for the last three
year period ended 31 March 2022 is given in Table 5.4.
Table 5.4: Equity investment and loans in Public Sector Undertakings
(` in crore)
Sources of As on 31 March 2020 As on 31 March 2021 As on 31 March 2022
investment
Equity Long Total Equity Long Total Equity Long Total
Term Term Term
Loans Loans Loans
State
Government 6,672.82 707.14 7,379.96 6,672.82 724.83 7,397.65 6,672.82 758.36 7,431.18
Central
25.42 286.53 311.95 25.42 292.78 318.20 25.42 158.89 184.31
Government
Others 315.46 11,795.90 12,111.36 315.46 12,847.58 13,163.04 315.46 12,460.72 12,776.18
Total 7,013.70 12,789.57 19,803.27 7,013.70 13,865.19 20,878.89 7,013.70 13,377.97 20,391.67

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Sources of As on 31 March 2020 As on 31 March 2021 As on 31 March 2022

investment Equity Long Total Equity Long Total Equity Long Total
Term Term Term
Loans Loans Loans
Share of
State
Government
95.14 5.53 37.26 95.14 5.23 35.43 95.14 5.67 36.44
in total
investment
(in %)
Source: Compiled from latest financial statements received as on 30 September 2022 and
information provided by PSUs.
The total investment in these PSUs increased marginally by 2.97 per cent during
2019-20 to 2021-22. As on 31 March 2022, the total investment in 30 State PSUs
comprised 34.39 per cent of equity capital and 65.61 per cent of long-term loans. The
long-term loans in 30 State PSUs consisted of `917.25 crore advanced by the Central
and State Governments and `12,460.72 crore raised from other sources
(Appendix 5.2).
5.6.2 Adequacy of Assets
In order to be considered solvent, the value of an entity’s assets must be greater than
the sum of its long-term loans/debts. One Public Sector Undertaking does not meet
this criterion as of 31 March 2022 (Table 5.5).
Table 5.5: Coverage of long-term loans with total assets
(₹ in crore)
Type of Positive Coverage Negative Coverage
PSUs Number Long Total Percentage Number Long Total Percentage
of Term Assets of Assets to of PSUs Term Assets of Assets to
PSUs Loans Loans Loans Loans
Government
9 11,375.84 46,011.08 404.46 1 1,681.43 1,065.38 63.36
Companies
Statutory
1 88.99 1,139.61 1,280.60 -- -- -- --
Corporations
Source: Compiled on the basis of latest finalized accounts of PSUs

5.6.3 Information on Subsidy, Grants by Central/State Government

The State Government provides financial support to PSUs in the form of loan, grants
and subsidies through annual budget. In addition, the Government provides Guarantee
for loans raised by PSUs for which it charges Guarantee commission upto the rate of
half a per cent. Details are in Table 5.6.

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Table 5.6: Details of budgetary support to Public Sector Undertakings

(` in crore)
Particulars6 2019-20 2020-21 2021-22 Total
No of Amount No of Amount No of Amount Amount
PSUs PSUs PSUs
(i) Loans 2 51.89 1 62 2 101.51 215.40
(ii)
11 9,546.26 9 8,445.74 10 7,226.58 25,218.58
Grants/Subsidy
Total Outgo
13 9,598.15 10 8,507.74 12 7,328.09 25,433.98
(i+ii)
Guarantees
4 3,764.41 2 3,426.34 3 5,013.25 --
Outstanding
Guarantee
4 6,752.59 3 6,682.28 3 11,907.28 --
Commitment
Source: Information furnished by PSUs
As can be seen from the Table above, annual budgetary assistance received by the
PSUs decreased from `9,598.15 crore in 2019-20 to `7,328.09 crore during the
period 2021-22. Budgetary assistance in the form of loan was given to Chhattisgarh
Mineral Development Corporation Limited (`12.52 crore) for mineral exploration
work and Chhattisgarh State Warehousing Corporation (`88.99 crore) for construction
of godowns. The major portion of subsidy/grants was given to Chhattisgarh State
Power Distribution Company Limited (`4,249.09 crore) for implementation of various
schemes such as single Bulb Connection, free supply of Electricity to Agriculture
pump, Mukhyamantri Majra-tola Vidyutikaran Yojana, Half Bijli Bill Scheme,
energisation of Agriculture pumps etc. and revenue subsidy and Chhattisgarh State
Civil Supplies Corporation Limited (`2,406.21 crore) to provide food grains at
concessional rate to the public. Out of the total budgetary support (loans and
subsidies/grants) of `25,433.98 crore during the period from 2019-20 to 2021-22, the
share of power sector was 54.40 per cent (`13,834.83 crore).

5.7 Returns from Public Sector Undertakings

5.7.1 Profit earned by PSUs
The profit earned by 11 PSUs out of 25 PSUs (covered in this report) was `932.01
crore in 2021-22 as compared to 14 PSUs which earned profit of `683.32 crore in
2019-20. The main reason for increase in profit was due to decrease in loss of
Chhattisgarh State Power Distribution Company Limited from `972.64 crore (2019-
20) to `419.77 crore (2021-22) and increase in profit of Chhattisgarh State Power
Generation Company Limited from `402.68 (2019-20) to `570.38 (2021-22). Details
of profit earning PSUs during 2019-20 to 2021-22 are summarised in Table 5.7.

6
Amount represents outgo from State Budget.

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Table 5.7: PSUs which earned profit during 2019-20 to 2021-22

Sl. Name of PSUs Profit for the year as per latest
No. finalized accounts (₹ in crore)
2019-20 2020-21 2021-22
1 Chhattisgarh Rajya Van Vikas Nigam Limited 30.26 11.56 11.56
2 Chhattisgarh State Beverages Corporation Limited 8.39 5.38 8.35
3 Chhattisgarh State Marketing Corporation Limited 11.76 11.76 11.76
4 Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam Limited 14.75 24.09 24.09
5 Chhattisgarh Nishakt Jan Vitt Avam Vikas Nigam 0.34 0.34 0.34
6 Chhattisgarh Medical Services Corporation Limited 7.32 7.32 7.32
7 Chhattisgarh State Warehousing Corporation 123.04 143.04 143.04
8 Kerwa Coal Limited 0.05 0.28 0.07
9 Chhattisgarh State Power Generation Company Limited 402.68 196.63 570.38
10 Chhattisgarh State Power Transmission Company Limited 78.13 153.90 153.90
11 Chhattisgarh State Power Holding Company Limited 1.53 1.20 1.20
Total 678.25 555.5 932.01
Source: Compiled on the basis of latest finalized accounts of PSUs

5.7.2 Dividend paid by Public Sector Undertakings

The State Government had not formulated any dividend policy under which all profit
making PSUs are required to pay a minimum per cent of return of the profit after
tax/paid up capital.
Dividend Payout relating to 21 PSUs where equity was infused by the State
Government during the period is shown in Table 5.8.
Table 5.8: Details of Dividend Payout of PSUs
(` in crore)
Year Total PSUs where PSUs which PSUs which declared/paid Dividend
equity infused by earned profit dividend during the year Payout
State Government during the year Ratio
Number Equity Number Profit Number Dividend (%)
of PSUs infused by of PSUs of PSUs declared/paid
GoCG by PSUs
(1) (2) (3) (4) (5) (6) (7) (8=7/5*100)
2019-20 21 6,671.07 13 950.52 2 3.84 0.48
2020-21 21 6,671.07 14 697.51 2 3.84 0.72
2021-22 21 6,666.97 10 931.94 2 3.84 0.41

Out of these 21 PSUs, 10 PSUs earned an aggregate profit of `931.94 crore. Only two
PSUs viz. Chhattisgarh Rajya Van Vikas Nigam Limited and Chhattisgarh State
Warehousing Corporation declared/paid dividend of `3.03 crore and `0.81 crore
respectively.

5.8 Debt Servicing

5.8.1 Interest Coverage Ratio
Interest coverage ratio (ICR) is used to determine the ability of a company to pay
interest on outstanding debt and is calculated by dividing a company's earnings before
interest and taxes (EBIT) by interest expenses of the same period. A ratio below one

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indicates that the company was not generating sufficient revenues to meet its expenses
on interest. The details of interest coverage ratio of PSUs which had outstanding loans
during the period from 2019-20 to 2021-22 are given in Table 5.9.
Table 5.9: ICR of Public Sector Undertakings
Year Interest EBIT No. of No. of PSUs No. of PSUs
(` in crore) (` in crore) PSUs having having ICR having ICR
interest burden more less than one
than one
2019-20 1,547.68 1,325.90 9 7 2
2020-21 1,834.67 2,006.91 11 7 4
2021-22 1,690.48 2,249.32 11 8 3
Source: Compiled on the basis of latest finalized accounts of PSUs

It was observed that out of 11 PSUs having interest burden, one PSU (Chhattisgarh
State Power Distribution Company Limited) had ICR of less than one throughout the
period from 2019-20 to 2021-22. The number of PSUs having ICR of less than one
included, Chhattisgarh Rural Housing Corporation Limited and Chhattisgarh Road
and Infrastructure Development Corporation Limited.
5.8.2 Dues of Chhattisgarh State Power Distribution Company
Limited to State and Central Power Generation Companies
Chhattisgarh State Power Distribution Company Limited (CSPDCL) involves in a
business of supply of power in Chhattisgarh State. To provide electricity to its various
consumers and for implementation of various Govt. scheme for supply the power to
the public, CSPDCL purchases power from Chhattisgarh State Power Generation
Company Limited (CSPGCL) and Central Public Sectors Undertakings (NTPC, SECI,
NHPC and NPCIL) and other private agencies. Amount payable against purchase of
power by CSPDCL at the year-end during the period from 2019-20 to 2021-22 is
given in the following table:
Sl. Name of Company Amount payable against purchase of power
No. (Figures in ₹ crore)
As on As on As on
31.03.2020 31.03.2021 31.03.2022
1 Chhattisgarh State Power Generation Co. Ltd. 3,613.73 3,409.21 4,008.54
2 NTPC 201.21 1,621.68 1,618.17
3 Solar Energy Corporation of India 29.91 29.24 45.25
National Hydroelectric Power Corporation 1.00 6.67
4 Ltd. 9.97
5 NTPC-SAIL Power Company 12.70 19.44 19.85
6 Nuclear Power Corporation of India Ltd. 18.65 9.53 15.61
7 Total dues of State and Central GENCO 3,877.20 5,095.77 5,717.39
8 Others 853.37 1,108.69 1,102.66
9 Grand Total 4,730.57 6,204.46 6,820.05

As could be seen from the above table that total outstanding dues payable to state and
central power generation Company has been increased from ₹3,877.20 crore in 2019-
20 to ₹5,717.39 crore in 2021-22. Out of total outstanding amount of ₹5,717.39 crore
as on 31 March 2022, the major part of ₹4,008.54 crore (70 per cent of total state and

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central power generating Companies) pertains to State Power Generation Company

i.e. CSPGCL.
The Government of Chhattisgarh launches the various schemes for providing the
concessional electricity to the various consumers, for which GoCG provides the
subsidy to CSPDCL for implementation of such schemes. In view of the large amount
of outstanding dues the GoCG has provided (24 May 2022) ₹1,000 crore directly to
CSPGCL on behalf of CSPDCL, which is to be adjusted from the outstanding amount
of GoCG.

5.9 Operating Efficiency of Government Companies

5.9.1 Profit earned (analysis of profit reporting from operating
activities/other income)
As on 31 March 2022, 11 profit earning PSUs earned total profit of `932.01 crore.
Major profit making PSUs during 2021-22 were, Chhattisgarh State Power
Generation Company Limited (`570.38 crore), Chhattisgarh State Power
Transmission Company Limited (`153.90 crore), Chhattisgarh State Warehousing
Corporation (`143.04 crore), while Chhattisgarh State Power Distribution Company
Limited reported substantial losses (`419.77 crore).
Out of 11 profit earning State Public Sector Undertakings, nine State Public Sector
Undertakings earned profit only from its operations7 and two State Public Sector
Undertakings earned profit only from other/extraordinary income as detailed in
Appendix 5.3.
5.9.2 Return on Capital Employed
Return on Capital Employed measures a company’s profitability and the efficiency
with which its capital is employed. It is calculated by dividing a company’s earnings
before interest and taxes by the capital employed8.
Table 5.10: Return on Capital Employed
Return on
Capital
EBIT Capital
Year No. of PSUs Employed
Nature of PSUs (` in crore) Employed
(` in crore)
(in per cent)
1 2 3 4 5 = 3/4*100
2019-20 14 1,879.80 1,6105.24 11.67
Profit Earning 2020-21 11 1,633.85 1,5655.25 10.44
2021-22 11 1,866.89 1,5776.44 11.83
2019-20 8 -494.79 -906.97 54.55
Loss incurring 2020-21 11 393.91 -1,174.13 -33.55
2021-22 11 394.13 -1,176.01 -33.51

7
Profit from Operating activities = Turnover – Total expenditure.
8 Capital employed = Paid up share capital + long term loans + accumulated profit / – accumulated
losses. Figures are as per the latest year for which accounts of the PSUs are finalised.

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2019-20 3 0 200.93 0.00

Nil Profit / Loss 2020-21 3 0 201.54 0.00
2021-22 3 0 201.54 0.00
2019-20 25 1,385.01 15,399.20 8.99
Total 2020-21 25 2,027.76 14,682.66 13.81
2021-22 25 2,261.02 14,801.97 15.28
Source: Compiled on the basis of latest finalized accounts of PSUs

Return on Capital Employed is on upward trend from 8.99 per cent in 2019-20 to
15.28 per cent in 2021-22 (Table 5.10).
5.9.3 Rate of Real Return on the basis of Historical Cost of
Investment
As on 31 March 2022, total investment of the State Government in 25 PSUs on the
basis of historical cost stood at `20,049.57 crore. The sector-wise RoI on historical
cost basis for the period 2019-20 to 2021-22 is given in Table 5.11.
Table 5.11: Return on the basis of historical cost of investment
(` in crore)
Year Funds invested Funds Funds Total Total RoRR
by State invested by invested by investment Earnings/ (in per
Government in Central Others in in Equity Losses for cent)
Equity and Government Equity and and Long the year
Long term in Equity and Long term term loans
loans Long term loans
loans
Government Companies
2019-20 7,263.70 311.95 11,773.29 19,348.94 -165.78 -0.90
2020-21 7,325.70 318.20 12,824.97 20,468.87 -422.34 -2.10
2021-22 7,334.32 184.31 12437.91 19,956.54 348.98 1.75
Statutory Corporations
2019-20 114.31 0.00 2.02 116.33 138.69 119.20
2020-21 70.00 0.00 2.02 72.02 138.69 192.60
2021-22 91.01 0.00 2.02 93.03 143.04 153.76
Grand Total
2019-20 7,378.01 311.95 11,775.31 19,465.27 -27.09 -0.10
2020-21 7,395.70 318.20 12,826.99 20,540.89 -283.65 -1.40
2021-22 7,425.33 184.31 12,439.93 20,049.57 492.02 2.45
Source: Latest finalised accounts and information furnished by PSUs
During the years 2019-20 to 2021-22, the return of Government companies on the
basis of historical cost of Investment ranged from -2.10 per cent to 1.75 per cent,
while the return of Statutory Corporation on the basis of historical cost of Investment
ranged from 119.20 per cent to 192.60 per cent.
5.9.4 Return on Investment on the basis of Present Value of
Investment
Traditional calculation of return based only on the basis of historical cost of
investment may not be a correct indicator of the adequacy of the return on the
investment since such calculations ignore the present value of money. Therefore, real

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return on investment has also been calculated after considering the Present Value of
money.
The Present Value (PV) of the investment in these PSUs was computed on the basis
of following assumptions:
• The State Government’s investment was computed where funds were infused in
the form of equity, defaulted long term loans and operational/ management expenses
as on 31 March 2022.
• Long term loans on which interest payments were defaulted by the PSUs were
considered as investment of State Government. In case of repayment of loans by these
PSUs, the PV was calculated on the reduced balances of loans over the period.
• The funds provided in the form of Grants/Subsidy have not been reckoned as
investment except capital grant since they do not qualify to be considered as
investment.
• The average rate of interest on Government borrowings for the concerned
financial year9 was adopted as discount rate for arriving at Present Value since they
represent the cost incurred by the Government towards investment of funds for the
year and therefore, considered as the minimum expected Rate of Return on
investments made by the Government.
Further, consolidated position of Present Value of the State Government investment
relating to these PSUs for the same period is indicated in Table 5.12.
Table 5.12: Year wise details of investment by the State Government and Present
Value of Government investment
Average Perce
Present Equity Interes Minimu
rate of Present ntage
value of infused Net t free m Total
Total Total interest value of of
total by the Interest loans expected earni
investme investme on total Total
Financi investme state Free conver Capital return to ngs
nt nt at the governm investme earni
al year nt at the governm Loan / ted Grant recover for
during end of ent nt at the ngs
beginnin ent Defaulted during cost of the
the year the year borrowi end of for
g of the during Loan the funds for year
ngs (in the year the
year the year year the year
%) year
G = J = M =
H = B + K =
A B C D E F (C+D- I (H*I%) L L*10
G (H*I%)
E+F) +H 0/H
Upto
4483.97 6649.27 268.64 20.11 2253.92 9151.72 13635.69 6.62 14538.38
2016-17

2017-18 14538.38 21.6 84.23 0 1353.68 1459.51 15997.89 6.38 17018.55 1020.66 1124.26 7.03
2018-19 17018.55 0 81.86 0 269.88 351.74 17370.29 6.1 18429.89 1059.58 928.65 5.35
2019-20 18429.89 0 -57.77 0 271.8 214.03 18643.92 6.83 19917.29 1273.38 -303.84 -1.63
2020-21 19917.29 0 0 0 331.89 331.89 20249.18 6.57 21579.56 1330.37 115.27 0.57
2021-22 21579.56 0.00 0 0 806.55 806.55 22386.09 6.4 23818.80 1432.71 492.02 2.19
Total 6670.87 376.96 20.11 5287.72 12315.44
Source: Compiled on the basis of latest finalized accounts of PSUs

9
The average rate of interest on Government borrowings was adopted from the Reports of the C&AG
of India on State Finances (Government of Chhattisgarh) for the concerned year wherein the
calculation for the average rate for interest paid = Interest Payment/ [(Amount of previous year's
Fiscal Liabilities + Current year's Fiscal Liabilities)/2]*100.

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The total investment of the State Government in 24 PSUs at the end of the year 2021-
22 was `12,315.44 crore consisting of equity (`6,670.87 crore), defaulted long term
loans (`376.96 crore excluding `20.11 crore interest free loan converted into equity)
and capital grants (`5,287.72 crore). The PV of investments of the State Government
as on 31 March 2022 was worked out to `23,818.80 crore. The returns have been
coming up and turned positive during 2020-21 and 2021-22.

5.10 Public Sector Undertakings incurring losses

5.10.1 Losses incurred
There were 11 PSUs that incurred losses as per their latest finalised accounts at the
end of March 2022. The losses incurred by these PSUs decreased to `439.99 crore as
per their latest finalised accounts from `987.16 crore in 2019-20 as given below in
Table 5.13.
Table 5.13: Number of Public Sector Undertakings that incurred losses during
2019-20 to 2021-22
(` in crore)
Year No of loss making Net loss for the Accumulated Net worth
State PSUs year loss
Government Companies
2019-20 8 -987.16 -7,281.05 -4,960.54
2020-21 11 -440.23 -7,916.11 -5,564.17
2021-22 11 -439.99 -7,917.99 -5,566.05
Statutory Corporation
2019-20 - - - -
2020-21 - - - -
2021-22 - - - -
Total
2019-20 8 -987.16 -7,281.05 -4,960.54
2020-21 11 -440.23 -7,916.11 -5,564.17
2021-22 11 -439.99 -7,917.99 -5,566.05
Source: Compiled on the basis of latest finalized accounts of PSUs

In 2021-22, out of total loss of `439.99 crore incurred by 11 PSUs, loss of `419.77
crore was contributed by one power sector PSU10.
5.10.2 Erosion of Capital in Public Sector Undertakings
Net worth means the sum total of the paid-up capital and free reserves and surplus
minus accumulated losses and deferred revenue expenditure. Essentially it is a
measure of what an entity is worth to the owners. A negative net worth indicates that
the entire investment by the owners has been wiped out by accumulated losses and
deferred revenue expenditure.
As against the equity (paid up capital plus defaulted loans) of `7,064.08 crore, overall
net accumulated losses reported by 30 PSUs were `4,163.97 crore, resulting in
depletion in net worth to `2,900.11 crore11 as on 31 March 2022. One PSU viz.,

10
Chhattisgarh State Power Distribution Company Limited
11
Paid up capital plus defaulted loans ₹ 7064.08 crore - accumulated losses ₹ 4163.97 crore = 2900.11
crore

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Chhattisgarh State Power Distribution Company Limited (CSPDCL) which incurred

losses amounting to `419.77 crore during the year 2021-22, reported total
accumulative loss of `7,710.10 crore as on 31 March 2022.
Table 5.14: Details of PSUs whose Net Worth has been eroded as per their latest
finalised accounts
(` in crore)
SI. Name of state PSU Latest Total Net profit Accumul Net worth State State Govt.
No year of paid up (+)/loss(-) ated Govt. loans as on
. finalised capital after losses Equity as 31 March
accounts interest, tax on 31 2022
and dividend March
2022
1 Chhattisgarh State 2020-21 4.43 (-) 0.47 205.35 (-)199.97 4.43 0.00
Civil Supplies
Corporation Limited
2 Chhattisgarh State 2020-21 2,263.10 (-) 419.77 7,710.10 (-)5,425.83 2,263.10 21.17
Power Distribution
Company Limited
3 Chhattisgarh State 2020-21 0.05 (-) 2.35 17.59 (-) 17.54 0.05 0.00
Power Trading
Company Limited
4 Chhattisgarh Mineral 2020-21 1.00 (-) 6.95 7.83 (-) 6.69 1.00 379.99
Development
Corporation
5 Raipur Smart City 2019-20 0.10 (-) 0.39 1.18 (-) 1.08 0.10 0.00
Limited
6 Chhatiisgarh Rural 2019-20 0.10 (-) 6.71 6.72 (-) 6.62 0.10 0.00
Housing Corporation
Limited
7 Chhattisgarh State 2017-18 1.60 (-) 2.47 8.19 (-) 6.59 1.60 0.00
Industrial
Development
Corporation Limited
The net worth of Seven12 PSUs out of 30 PSUs had been completely eroded by
accumulated losses and their net worth was either zero or negative. Further, none of
the above seven companies have submitted the annual accounts within the due date
i.e. 30 September 2022.

5.11 Oversight role of Comptroller and Auditor General of India

5.11.1 Audit of Public Sector Undertakings
The financial statements of the Government Companies (as defined in Section 2 (45)
of the Companies Act, 2013) are audited by Statutory Auditors, who are appointed by
the Comptroller and Auditor General of India as per the provisions of Section 139 (5)
or (7) of the Companies Act, 2013. The Statutory Auditors submit a copy of the Audit
Report to the Comptroller and Auditor General of India including, among other
things, financial statements of the Company under Section 143 (5) of the Companies
Act 2013. These financial statements are also subject to supplementary audit by the

12
Chhattisgarh State Civil Supplies Corporation Limited, Chhattisgarh State Power Distribution
Company Limited, Chhattisgarh State Power Trading Company Limited, Chhattisgarh Mineral
Development Corporation Limited, Raipur Smart City Limited, Chhattisgarh Rural Housing
Corporation Limited and Chhattisgarh State Industrial Development Corporation Limited

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 Chapter V - Financial Performance of State PSUs

Comptroller and Auditor General of India within sixty days from the date of receipt of
the audit report under the provisions of Section 143(6) of the Companies Act, 2013.
Audit of Statutory Corporations is governed by their respective legislations. In respect
of Chhattisgarh State Warehousing Corporation, the audit is conducted by Chartered
Accountants and supplementary audit is conducted by the Comptroller and Auditor
General of India.
Further, as per sub-Section 7 of Section 143 of the Companies Act, 2013, Comptroller
and Auditor General of India may, in case of any company covered under sub-Section
(5) or sub-Section (7) of Section139, if considered necessary, by an order, cause test
audit to be conducted of the accounts of such Company and the provisions of Section
19A of the Comptroller and Auditor General of India's (Duties, Powers and
Conditions of Service) Act, 1971 shall apply to the report of such test Audit. Thus, a
Government Company or any other Company owned or controlled, directly or
indirectly, by the Central Government, or by any State Government or Governments,
or partly by Central Government and partly by one or more State Governments, is
subject to audit by the Comptroller and Auditor General of India.
5.11.2 Appointment of Statutory Auditors of Public Sector
Undertakings by Comptroller and Auditor General of India
The Comptroller and Auditor General of India appoints the statutory auditors of a
Government Company under Section 139 (5) and (7) of the Companies Act, 2013.
Section 139 (5) of the Act, 2013 provides that the statutory auditors in case of a
Government Company are to be appointed by the Comptroller and Auditor General of
India within a period of 180 days from the commencement of the financial year.
Section 139 (7) of the Companies Act, 2013 provides that in case of a Government
Company the first auditor is to be appointed by the Comptroller and Auditor General
of India within sixty days from the date of registration of the company and in case
Comptroller and Auditor General of India does not appoint such auditor within the
said period, the Board of Directors of the Company or the members of the Company
have to appoint such auditor.
The Statutory Auditors of all the PSUs (except Chhattisgarh State Information
Infrastructure Corporation Limited and Chhattisgarh State Industrial Development
Corporation) for the year 2021-22 were appointed by the Comptroller and Auditor
General of India till August 2022.

5.12 Submission of accounts by Public Sector Undertakings

5.12.1 Need for timely submission
According to Section 395 of the Companies Act 2013, Annual Report on the working
and affairs of a Government Company, is to be prepared within three months of its
Annual General Meeting (AGM) and as soon as may be after such preparation laid
before the House or both Houses of the State Legislature together with a copy of the
Audit Report and any comments upon or supplement to the Audit Report, made by the

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State Finances Audit Report for the Year ended 31 March 2022

CAG. Almost similar provisions exist in the respective Acts regulating Statutory
Corporations. This mechanism provides the necessary legislative control over the
utilisation of public funds invested in the Companies and Corporations from the
Consolidated Fund of State.
5.12.2 Timelines in preparation of accounts by Public Sector
Undertakings
Section 96 of the Companies Act, 2013 requires every company to hold Annual
General Meeting of the shareholders once in every calendar year. It is also stated that
not more than 15 months shall elapse between the date of one Annual General
Meeting and that of the next. The section further provides that in case of the first
Annual General Meeting, it shall be held within a period of nine months from the date
of closing of the first financial year of the company and in any other case, within a
period of six months, from the date of closing of the financial year. Accordingly, the
Companies were required to hold Annual General Meeting upto 30 September 2022
for the financial year 2021-22.
Further, Section 129 of the Companies Act 2013 stipulates that the audited Financial
Statement for the financial year has to be placed in the said Annual General Meeting
for their consideration. Section 129 (7) of the Companies Act 2013 also provides for
levy of penalty like fine and imprisonment on the persons including directors of the
Company responsible for non-compliance with the provisions of Section 129 of the
Companies Act, 2013.
As of 31 March 2022, there were 29 Government Companies and one Statutory
Corporation under the purview of Comptroller and Auditor General of India's audit.
Of these, only six Government Companies submitted its account (2021-22) for audit
by Comptroller and Auditor General of India on or before 30 September 2022.
Total 40 accounts by 24 PSUs were not submitted within the timeline prescribed
in violation of Section 129 of Companies Act, 2013.
The break-up of arrears in accounts of Government Companies and Statutory
Corporation are detailed in Table 5.15.
Table 5.15: Break up of arrear in accounts
Particulars State Public Sector Undertakings
Government Statutory Total
companies corporation
Number of accounts in arrears 39 1 40
Extent of arrear Up to 5 years 1 year
Break- up of (i) Under Liquidation - - -
arrears (ii) Inactive 4 -- 4
(iii) First Accounts not submitted 5 -- 5
(iv) Others 30 1 31
Source: compiled on the basis of latest finalised accounts of PSUs

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 Chapter V - Financial Performance of State PSUs

5.13 Comptroller and Auditor General of India's oversight-Audit of

accounts and supplementary audit
5.13.1 Financial reporting framework
Companies are required to prepare their financial statements in the format laid down
in Schedule III to the Companies Act, 2013 and in adherence to the mandatory
Accounting Standards prescribed by the Central Government, in consultation with
National Advisory Committee on Accounting Standards. The Listed Companies and
Companies having net worth of more than ` 250 crore are required to comply with the
Indian Accounting Standards. Further parent, subsidiary, associate and joint venture
of aforesaid companies are also required to comply with Indian Accounting Standards.
The Companies not covered by the above shall continue to apply Accounting
Standards. Out of the 29 Government Companies, eight Companies follow the Indian
Accounting Standards while the remaining prepare their accounts as per Accounting
Standards.
The Statutory Corporations are required to prepare their accounts in the format
prescribed under the rules, framed in consultation with the Comptroller and Auditor
General of India and any other specific provision relating to accounts in the Act
governing such Corporations.
5.13.2 Supplementary Audit of accounts of Public Sector
Undertakings
The prime responsibility for preparation of financial statements in accordance with the
financial reporting framework prescribed under the Companies Act, 2013 or other
relevant Act is of the management of an entity.
The statutory auditors appointed by the Comptroller and Auditor General of India are
responsible for expressing an opinion on the financial statements under Section 143 of
the Companies Act, 2013 based on independent audit in accordance with the
Standard Auditing Practices of Institute of Chartered Accountants of India and
directions given by the Comptroller and Auditor General of India. The statutory
auditors are required to submit the Audit Report to the Comptroller and Auditor
General of India under Section 143 of the Companies Act, 2013. The Statutory
Auditors reported that five PSUs13 did not comply with mandatory Accounting
Standards (AS) /Indian AS.
The certified accounts of selected Government Companies along with the report of the
statutory auditors are reviewed by Comptroller and Auditor General of India by
carrying out a supplementary audit. Based on such review, significant audit
observations, if any, are reported under Section 143 (6) of the Companies Act, 2013 to
be placed before the Annual General Meeting.

13
Chhattisgarh State Power Generation Company Limited, Chhattisgarh State Power Distribution
Company, Chhattisgarh State Power Transmission Company Limited, Chhattisgarh State Power
Holding Company Limited and Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam Limited

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State Finances Audit Report for the Year ended 31 March 2022

5.14 Result of Comptroller and Auditor General of India's oversight

role
5.14.1 Audit of accounts of Public Sector Undertakings under Section
143 of the Companies Act, 2013
During the period under review (October 2021 to September 2022), 29 financial
statements were received for audit, which 23 pertained to the previous years. The
status of the financial statements received, reviewed and comments issued is given in
Table 5.16.
Table 5.16: Status of Financial Statements of Public Sector Undertakings
Particulars Financial Year 2021-22 PreviousYears
of Financial Governme Statutory Total Government Statutory Total
Statement nt corporation Company Corporation
company
Received 6 -- 6 21 2 23
Not Reviewed 4 -- 4 3 -- 3
Reviewed - -- - 12 2 14
Audit in progress* 2 - 2 6 -- 6
Nil comment -- - -- 2 0 2
issued
Comments issued -- -- -- 10 2 12
*As on 30 September2022
Comments of the Comptroller and Auditor General of India on financial statements of
12 PSUs were issued during the period under review.
5.14.2 Significant comments of the Comptroller and Auditor
General of India issued as supplement to the Statutory Auditors'
reports
Subsequent to the audit of the financial statements by the Statutory Auditors, the
Comptroller and Auditor General of India conducted supplementary audit of the
financial statements of the PSUs. Some of the significant comments issued on the
financial statements of the Government Companies are listed below:
Comments on Profitability
Sl. Name of Comment
No. Company
1 Chhattisgarh Capital Work in Progress includes `5.08 crore towards completed capital
State Power works which should have been capitalised during the year by the
Transmission Company. The non-capitalisation of the same has resulted in
Company
overstatement of Capital Works in Progress to the extent of ` 5.08 crore
Limited
(2020-21) and understatement of Property, Plant and Equipment to the extent of
`3.71 crore (`5.08 crore less depreciation of `1.37 crore). It has also
resulted in understatement of Depreciation by `1.37 crore and
overstatement of Profit to the same extent.
2 Chhattisgarh Long Term Loans and Advances did not include `2.19 crore being
State Beverages advance given (February 2021) to Public Works Department,
Corporation Government of Chhattisgarh towards installation of fire-fighting system

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 Chapter V - Financial Performance of State PSUs

Limited and construction of Cement Concrete (CC) Road for the Company’s
(2020-21) godown under-construction at Bilaspur. The Company recognised this as
administrative, selling and other expenses instead of Long -term loans
and advances. This has resulted in overstatement of expenditure by `2.19
crore and understatement of Non-Current Assets and Profit to the same
extent.
3 Chhattisgarh Employees Benefit Expenses did not include 7th pay arrears for the period
Rajya Van from April 2016 to June 2016 and July 2016 to September 2016 of
Vikas Nigam `56.29 lakh payable to the regular employees of the Company as per
Limited
letter of Finance Department, Government of Chhattisgarh dated
(2020-21)
11.10.2019 and 28.03.2021. Provision for the same should have been
made. This has resulted in understatement of Employee Benefit
Expenses, Other Financial Liabilities by `56.29 lakh and overstatement
of Profit for year to the same extent.
4 Chhattisgarh Cost of Power Purchase did not include `27.63 crore payable to South
State Power Eastern Central Railways pursuant to the arbitral award issued (3 May
Distribution 2019) by the Arbitration Tribunal towards billing dispute between the
Company
CSPDCL and Indian Railways. This resulted in understatement of cost of
Limited
(2019-20) power purchase, understatement of Loss and understatement of Current
Liabilities by `27.63 each.

Comments on Financial Position

Sl. Name of Comment
No. Company
1 Chhattisgarh Provisions includes `1.01 crore provision of Income Tax for the year
Mineral 2016-17, 2017-18 and 2019-20. Since, Income Tax returns have been
Development filed, it should not have been shown in the financial statements and
Corporation
should have been written back. This resulted in overstatement of
Limited
(2020-21) Provision and Advance Tax by `1.01 crore.
2 Chhattisgarh Other Current Liabilities includes an amount of `453.07 crore towards
State Power deposit works from various consumers. As per accounting practice of the
Distribution Company, the amortization of deposit work has been done @5.28
Company
percent per annum. However, the Management failed to amortize the
Limited
(2020-21) deposit works during the financial year 2020-21. This has resulted in
understatement of ‘Amortization of capital grant’ under the head ‘Other
Income’ by `23.92 crore and overstatement of ‘Other Current
Liabilities’ to the same extent.
3 Chhattisgarh Trade Receivables includes `3.04 crore shown as recoverable from Lok
Rajya Beej Evam Sikshan Sanchanalay by District Office Raipur in their books of
Krishi Vikas accounts as on 31 March 2021. However, this amount had been already
Nigam Limited
recovered during 2017-18 and accounted for in respective year. This
(2020-21)
resulted into overstatement of Trade Receivables and overstatement of
Reserve and Surplus by `3.04 crore each.
4 Chhattisgarh The Government of Chhattisgarh ordered (January 2020), the Company
Road and to charge one per cent supervision charge on cost of work and claim
Infrastructure once in a financial year. In violation of above, the Company in addition
Development
to one percent supervision charge, recouped loss of `1.41 crore was
Corporation
Limited diverted without Government approval, a provision of `1.41 crore
(2020-21) should have been made in the books of accounts. This has resulted in
overstatement of Surplus, understatement of other long-term liabilities
and understatement of loss each by `1.41 crore.

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State Finances Audit Report for the Year ended 31 March 2022

5 Raipur Smart The grant received by the Company are tied grants, specific to projects
City Limited with certain conditions that needs to be fulfilled and therefore, should
(2018-19) not have been shown as part of Capital Reserve under Reserve and
Surplus. This resulted into overstatement of Reserve and Surplus and
understatement of Non-current liability each by `248.32 crore.
6 Chhattisgarh Capital Work in Progress includes `2.78 crore being the cost of
State construction of 5400 MT warehouse at Raipur, District Sarguja. The
Warehousing construction of the warehouse was completed on 27 February 2020 and
Corporation
should have been capitalised. This has resulted in understatement of
(2019-20)
Fixed Assets (gross block) and overstatement of Capital-Work-in-
Progress by `2.78 crore and consequent impact on depreciation and
profitability.

Comments on Auditor's Report

Some of the significant comments issued on the Statutory Auditor’s Report are listed
below:
Sl. Name of Comment
No. Company
1 Chhattisgarh The Independent Auditors’ reported that funds received for specific
Road and schemes from various Chhattisgarh Government State agencies has been
Infrastructure properly accounted for and utilised for the intended purpose and un-spent
Development
balance is separately reflected. However, the Company has utilised fund
Corporation
Limited (2020- of ₹ 1.41 crore for the purpose of Recoupment of loss without permission
21) of Government and not for the intended purpose. Thus, the Independent
Auditors’ Report was deficient to that extent.
2 Chhattisgarh The Independent Auditors’ reported that “The Company does not have
Police Housing any pending litigations which would impact its financial position”.
Corporation However, four legal cases related to levy of penalty by the Company
Limited (2020-
were pending finalization as on 31 March 2021 which would impact the
21)
Company’s financial position. Thus, Independent Auditors’ Report was
factually incorrect to that extent.
3 Chhattisgarh The Company adopted the Annual Accounts for the year 2019-20 in
Mineral Annual General Meeting without approval of Comments of Comptroller
Development and Auditor General of India. This fact should have been disclosed in the
Corporation
Independent Auditor’s Report. Thus, the Independent Auditor’s Report
Limited (2020-
21) was deficient to that extent.
4 Chhattisgarh The Independent Auditor qualified his opinion that the Company failed to
State Power comply with the provisions of Section 135 (1) of the Companies Act,
Distribution 2013 regarding constitution of Corporate Social Responsibility
Company
Committee of the Board. However, as per section 135 (9) of Companies
Limited (2020-
21) Act 2013, the above does not apply to the Company as the Company had
been making losses for more than three years consistently. Hence, the
qualification of Independent Auditors was not correct to that extent.

5.15 Non-compliance with provisions of Accounting Standards/

Indian Accounting Standards
In exercise of the powers conferred by Section 469 of the Act, 2013, read with
Section 129 (1), Section 132 and Section 133 of the said Act, the Central
Government prescribed Accounting Standards. Besides these, the Central

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 Chapter V - Financial Performance of State PSUs

Government notified 42 Indian Accounting Standards through Companies (Indian

Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) (Amendment) Rules, 2016. Three Indian Accounting Standards
namely Indian Accounting Standards 11, 17 & 18 have been withdrawn after the
notification of Indian Accounting Standard 115 &116.
During the course of supplementary audit carried out between October 2021 and
September 2022, the Comptroller and Auditor General of India observed that the
following companies had also not complied with the Accounting Standards/Indian
Accounting Standards which were not reported by their statutory auditors:
Accounting Name of the Deviation
Standards/ Company
Indian Accounting
Standards
AS 12 - Government Chhattisgarh The Company acquired/constructed six number of
Grants Rajya Beej godown building valuing `3.16 crore from the
Evam Krishi grant of `3.16 crore received from Government
Vikas Nigam
/Mandi Board. The assets were capitalized at
Limited
(2020-21) nominal cost of `1 for each godown building as
the full cost received from Government/Mandi
Board. However, the policy adopted for
accounting of such grant had not been disclosed
in the books of accounts as per AS -12 of
accounting standard. Thus, books of accounts is
deficient to that extent.
AS 4 – Chhattisgarh Provisions includes an amount of `80.77 lakh
Contingencies and State towards Provision for proposed dividend for the
Events occurring Warehousing financial year 2020-21. However, as per the
after Balance Sheet Corporation
amendment made in Accounting Standard – 4 by
(2020-21)
ICAI, dividend proposed for a year is not a
liability till it has been approved by the
shareholders instead of recognizing the proposed
dividend as liability Company should have been
disclosed it in notes to the accounts. Thus, this
has resulted in overstatement of Provision by
`80.77 lakh and understatement of Profit to that
extent.

5.16 Management Letters

One of the objectives of financial audit is to establish communication on audit matters
arising from the audit of financial statements between the auditor and those charged
with the responsibility of governance of the corporate entity.
The material observations on the financial statements of PSUs were reported as
comments by the Comptroller and Auditor General of India under Section 143 (5) of
the Companies Act, 2013. Besides these comments, irregularities or deficiencies
observed by Comptroller and Auditor General of India in the financial reports or in

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State Finances Audit Report for the Year ended 31 March 2022

the reporting process, were also communicated to the management through a

'Management Letter' for taking corrective action.
During the period October 2021 to September 2022 Management Letters were issued
to three14 PSUs. The deficiencies generally related to:
• adjustments arising out of audit that could have a significant effect on the
financial statements;
• lack of internal Control on the part of Management; and
• application and interpretation of accounting policies and practices.

5.17 Conclusion
As on 31 March 2022, there were 30 PSUs including one Statutory Corporation. Out
of 30, there are two inactive PSUs. Out of 28 working PSUs, only 25 PSUs (24
Companies and one Statutory Corporation), whose accounts were in arrears for two
or less years as on 30 September 2022 have been considered for detailed analysis of
financial performances.
During 2021-22, these 25 PSUs registered turnover of `42,147.03 crore, which was
equal to 10.53 per cent of the GSDP of Chhattisgarh. The contribution of Power
sector PSUs alone accounts for over 57 per cent of the total turnover of PSUs during
2021-22.
The investment of the State Government in equity and long-term loans in 30 PSUs was
`7,431.18 crore at the end of 31 March 2022. The outstanding long-term loans of
these PSUs increased to `13,377.97 crore from `12,789.57 crore during the year of
2019-20 to 2021-22.
The Profit earned by 11 PSUs out of 25 PSUs (covered in this Report) was `932.01
crore in 2021-22 as compared to 14 PSUs which earned profit of `683.32 crore in
2019-20. Chhattisgarh State Power Generation Company Limited (`570.38 crore),
Chhattisgarh State Power Transmission Company Limited (`153.90 crore) and
Chhattisgarh State Warehousing Corporation (`143.04 crore) contributed the major
portion of the profit. Out of the total loss of `439.99 crore incurred by eleven PSUs,
major loss was incurred by Chhattisgarh state Power Distribution company Limited
(`419.77 crore).
Out of 30 PSUs, accounts of 24 PSUs were in arrears (23 Government Companies,
one Statutory Corporation) for various reasons for the year 2021-22. PSUs were not
adhering with the prescribed timeline regarding submission of their Financial
Statements as per the Companies Act, 2013. As a result, 40 accounts of 24 PSUs were
in arrears.

14
Kerwa Coal Limited, Uttar Chhattisgarh Rajya Vidyut Utpadan Limited (2019-20 and 2020-21) and
Chhattisgarh State Power Generation Company Limited

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5.18 Recommendations
(i) Government of Chhattisgarh may review the functioning of all loss making
PSUs and take necessary steps to improve their financial performance.
(ii) Government of Chhattisgarh may issue necessary instructions to Administrative
Departments to set targets for individual PSUs to furnish the accounts in time and to
strictly monitor the clearance of arrears and take steps expeditiously in order to
liquidate the arrears in finalisation of accounts.
(iii) Government of Chhattisgarh may review the inactive Government Companies
and take appropriate decision on their revival/winding up.

Raipur (YASHWANT KUMAR)

The: 29 MAR 2023 Principal Accountant General (Audit)
Chhattisgarh

Countersigned

New Delhi (GIRISH CHANDRA MURMU)

The: 31 MAR 2023 Comptroller and Auditor General of India

Page 137
APPENDICES
 Appendices

Appendix 1.1
(Reference: Paragraph 1.1)
State Profile
A-General Data
Sl. Particulars Figures
No. (Chhattisgarh)
1 Area 1,35,192 Sq.km
2. Population (as per 2011 Census) 2.55 crore

3 Density of population (as per 2011 Census) (all India density = 382 persons 189 person
per sq. Km.) per Sq. km
4 Population Below Poverty Line 2011-12 (all India average = 21.92 per 39.93 per cent
cent)
5 Literacy (as per 2011 Census ) (all India average = 73.00 per cent) 70.30 per cent

6 Infant mortality (as of 2019) (per 1000 live births) (all India average = 30 38 per 1000 live
per 1000 live births) births
7 Life expectancy at birth (All India average in years 2014-18 = 69.40) 65.20
8 Population Growth (2012-2022) All India 12.12
Chhattisgarh 14.97
9 Gross State Domestic Product (GSDP) 2021-22 at current price ₹4,00,061 crore

B. Financial Data

Particulars
2012-13 to 2020-21 2020-21 to 2021-22
General Chhattisgarh General Chhattisgarh
CAGR Category Category
States States

(in per cent)

a. of Revenue Receipts 9.17 9.95 25.60 26.08
b. of Tax Revenue 7.75 9.94 33.19 28.75
c. of Non Tax Revenue 4.80 5.60 45.35 94.08
d. of Total Expenditure 11.07 11.22 13.96 8.51
e. of Capital Expenditure 9.65 7.88 28.19 16.40
of Revenue Expenditure on
f. 9.19 12.61 11.41 10.06
Education, Sports arts and culture
of Revenue Expenditure on
g. 14.67 21.08 19.71 20.33
Health
h. of Salary and Wages 9.26 13.93 11.23 9.28
i. of Pension 12.38 14.52 11.88 4.71
(Note: Financial data is based on Finance Accounts of the States Government)

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Appendix 2.1
(Reference: Paragraphs 2.4.1)
Time Series Data on State Government Finances
(` in crore)
2017-18 2018-19 2019-20 2020-21 2021-22
Part A- Receipts
1. Revenue Receipts 59,647(86) 65,095 (82) 63,869(76) 63,176(74) 79,652(84)
(i) Own Tax Revenue 19,895(33) 21,427(33) 22,118(35) 22,889(36) 27,083(34)
Taxes on Agricultural Income 0 0 0 0 0
VAT/Taxes on Sales, Trade, etc. 6,450(32) 4,088(19) 3,931(18) 4,236(19) 5,341(20)
State Excise 4,054(20) 4,489(21) 4,952(22) 4,636(20) 5,107(19)
Taxes on Vehicles 1,180(6) 1,205(06) 1,275(06) 1,148(05) 1,373(05)
Stamps and Registration Fees 1,197(6) 1,108(05) 1,635(07) 1,585(07) 1,945(07)
Land Revenue 446(2) 488(02) 552(02) 938(04) 950(04)
Taxes on Goods and Passengers 478(2) 54(0) 41(0) 80(0) 48(0)
State Goods and Service Tax 4,387(22) 8,203(38) 7,895(36) 7,925(35) 9,483(35)
Other Taxes 1,703(09) 1,792(08) 1,838(09) 2,341(10) 2,836(10)
(ii) Non Tax Revenue 6,340(11) 7,703(12) 7,934(12) 7,137(11) 13,851(17)
(iii) State’s share in Union taxes
20,755(35) 23,459(36) 20,206(32) 20,338(32) 28,571(36)
and duties
(iv) Grants in aid from GOI 12,657(21) 12,506(19) 13,611(21) 12,812(20) 10,146(13)
2. Misc. Capital Receipts 03 05 04 05 05
3. Recoveries of Loans and
138 162 257 105 88
Advances
3(a) Inter-State Settlement 01 02 00 00 00
4. Total Revenue and Non Debt
59,789 65,264 64,130 63,286 79,745
Capital Receipts (1+2+3)
5. Public Debt Receipts 9,652(14) 14,370(18) 19,588(53) 21,581(25) 15,098(16)
Internal Debt (Excluding Ways &
9,188 13,817 19,308 17,9611 9,322
Means Advances & overdrafts)
Net transactions under ways and
00 00 00 00 00
means advances and overdraft
Loans and Advances from
465 553 279 3,620 5,776
Government of India
6. Total Receipt in the
69,441 79,634 83,718 84,868 94,843
consolidated fund (4+5)
7. Contingency Fund Receipts 00 00 05 00 00
8. Public Account Receipts 72,058 76,903 89,910 81,446 87,016

9. Total receipts of the State

1,41,499 1,56,537 1,73,628 1,66,314 1,81,859
(6+7+8)

1
including Special Drawing Facility

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 Appendices

2017-18 2018-19 2019-20 2020-21 2021-22

Part B: Expenditure/Disbursement
10. Revenue Expenditure 56,230(84) 64,411(88) 73,477(89) 70,033(89) 75,010(88)
General Services
12,870(23) 15,280(24) 19,095(26) 19,586(28) 21,375(28)
(incl. interest payments)
Social Services 24,372(43) 23,455(37) 26,653(36) 25,066(35) 27,964(37)
Economic Services 17,623(31) 24,781(39) 26,609(36) 24,255(35) 24,558(33)
Grants-in-aid and Contributions 1,365(02) 895(01) 1,120(02) 1,125(02) 1,113(01)
11. Capital Expenditure 10,001(15) 8,903(12) 8,566 (10) 9,024(11) 10,504(12)
General Services 303(3) 255(03) 194(02) 509(06) 352(03)
Social Services 2,652(27) 1,774(20) 1,912(22) 2,935(33) 3,234(31)
Economic Services 7,046(70) 6,874(77) 6,460(76) 5,581(62) 6,919(66)
12. Disbursement of Loans and
369 240 56 51 324
Advances
12(a) Inter-State Settlement 1.00 0.25 0.05 0.01 (-)0.25
13.Total (10+11+12+12[a]) 66,600 73,555 82,100 79,108 85,838
14. Repayment of Public Debt 1,000 1,146 8,696 8,020 8,845
Internal Debt (excluding Ways &
828(83) 953(83) 8,480(98) 7,805(97) 8,626(98)
Means Advances and Overdrafts)
Net transactions under Ways and
0.00 0.00 0.00 0.00 0.00
Means Advances and Overdraft
Loans and Advances from
172(17) 193(17) 216(02) 215(03) 220(02)
Government of India
15. Appropriation to Contingency
0.00 0.00 0.00 0.00 0.00
Fund
16. Total disbursement out of
67,600 74,700 99,419 87,128 94,683
Consolidated Fund (13+14+15)
17. Contingency Fund
0.00 5.00 0.00 0.00 0.00
disbursements
18.Public Account disbursements 71,754 76,357 83,719 81,120 86,716
19.Total disbursement by the State
1,39,354 1,51,057 1,83,138 1,68,248 1,81,399
(16+17+18)
Part C: Deficits
20. Revenue Deficit (-) (1-10)/
3,417 684 (-)9,609 (-)6,857 4,642
surplus (+)
21.Fiscal Deficit(-)/ Surplus (+)
(-)6,810 (-)8,292 (-)17,970 (-)15,822 (-)6,093
(4-13)
22. Primary Deficit (-)/Surplus (+) (-)3,712 (-)4,640 (-)12,999 (-)10,189 51
Part D: Other Data
23. Interest Payments 3,098 3,652 4,971 5,633 6,144
24. Ways and Means Advances/
0.00 0.00 0.00 0.00 0.00
Overdraft availed (days)
Ways and Means Advances availed
0.00 0.00 0.00 0.00 0.00
(days)
Overdraft availed (days) 0.00 0.00 0.00 0.00 0.00
25. Interest on WMA/Overdraft 0.00 0.00 0.00 0.00 0.00
26. Gross State Domestic Product
2,82,283 3,27,693 3,44,571 3,52,161 4,00,061
(GSDP)

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2017-18 2018-19 2019-20 2020-21 2021-22

2
27. Outstanding Debt (year-end) 52,907 66,750 78,712 92,714 99,1733
28. Outstanding Guarantees (year-
3,882 10,769 18,459 19,836 19,524
end)
29. Maximum Amount Guaranteed
6,550 19,574 27,995 26,695 29,948
(year-end)
30. Number of Incomplete Projects 110 107 145 149 148
31. Capital Blocked in Incomplete
4,067 4,365 3,355 4,444 4,667
Projects

2
After excluding back to back loan (`3,019 crore), the amount of outstanding debt would be `89,605 crore.
3
After excluding back to back loan (`8,074 crore), the amount of outstanding debt would be `91,099 crore.

Page 142
 Appendices

Appendix 3.1
(Reference: Paragraph 3.3.1)
Details of schemes which are 100% women-centric during 2021-22
(` in crore)

Sl. Original Supple- Total

Scheme Number and Name Expenditure
No. Budget mentary Budget

1 761- Girls Education Campus 20.44 0.00 20.44 18.89

2 1206- Tour and exhibition direction for rural women 1.50 0.00 1.50 1.43
3 2216- Integration of Public Health through Basic 34.92 0.00 34.92 28.45
Nursing Education Programme
4 3459- Women Sports Competition 2.00 0.00 2.00 0.96
5 4663- Grant for Spinning Mills 0.07 0.00 0.07 0.03
6 4691- Incentive schemes for teaching of Girls 6.00 0.00 6.00 4.96
7 5534- Grant for Health Mitanin Project 1.40 0.00 1.40 0.77
8 5551- Free cycle Distribution to High School Girls 64.60 0.00 64.60 87.46
9 5560- State Level Resource Centre 2.39 0.00 2.39 1.48
10 5563- Regional Women Training Institute 1.90 0.00 1.90 1.01
11 5645- Mukhyamantri Kanyadaan Yojna 19.00 0.00 19.00 14.32
12 6388- Training Centre of Nurses 25.29 0.00 25.29 13.79
13 7330- Mitanin Welfare fund 110.00 0.00 110.00 110.00
14 7336- Indira Gandhi National Widow Pension 70.15 0.00 70.15 72.30
15 7361- Sabala Yojana 7.16 0.00 7.16 2.86
16 7435- Nutrition 38.50 0.00 38.50 33.95
17 7747- Mahtari Jatan Yojana 33.26 0.00 33.26 25.56
18 7875- Suchita Yojana 6.50 0.00 6.50 5.25
19 7884- Pradhan Mantri Matru Vandana 50.91 0.00 50.91 34.59
20 8977- Asangathith Safai Karmkar Kalyan Mandal 8.00 0.00 8.00 2.04
21 8989- Contract Labour , Domestic Laborious and 15.00 0.00 15.00 6.09
porter Welfare Assembly
22 9131- Training to anganwadies workers under 7.00 0.00 7.00 0.00
Integrated Child Development service schemes
23 9369- Mahila Jagriti Shivir 4.85 0.00 4.85 5.39
Total 530.85 0.00 530.85 471.58

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State Finances Audit Report for the Year ended 31 March 2022

Appendix 3.2
(Reference: Paragraph 3.3.2)
Details of schemes which are 100% youth-centric during 2021-22
(` in crore)

Sl. Original Supple- Total

Scheme Number and Name Expenditure
No. Budget mentary Budget

1 436-Special Coaching Classes 0.12 0.00 0.12 0.04

2 1079-Training of Sportsmen 1.25 0.00 1.25 0.97
3 1190-Rural Sports Competition 1.50 0.00 1.50 0.28
4 1853-Supply of Drawing Material 1.25 0.00 1.25 0.57
5 2216-Integration of Public Health through Basic Nursing 34.92 0.00 34.92 28.45
Education Programme
6 3459-Women Sports Competition 2.00 0.00 2.00 0.96
7 4699-Supply of Books etc. to scheduled caste students 1.10 0.00 1.10 0.81
8 5223-Incentives to Sportsmen 3.00 0.00 3.00 1.24
9 5260- Distribution of Bull for Breed Improvement 0.75 0.00 0.75 0.75
10 5428-Prizes for State Level Sports 0.70 0.00 0.70 0.70
11 5429-Youth Welfare Activities 2.00 0.00 2.00 1.16
12 5645-Mukhyamantri Kanyadaan Yojna 19.00 0.00 19.00 14.32
13 5671-B.P.L Book Bank Scheme 0.50 0.00 0.50 0.49
14 5672-B.P.L. Scholarship Schemes 6.15 0.00 6.15 6.13
15 6047-Grant to Local Bodies for Training 0.14 0.00 0.14 0.14
16 6386-Medical Dental Physiotherapy College 821.56 37.00 858.56 393.23
17 6388- Training Centre of Nurses 25.29 0.00 25.29 13.79
18 6407- State Youth Festival 5.00 0.00 5.00 1.00
19 6408- Rajya Yuva Mitan Club 50.00 0.00 50.00 33.12
20 6409- Mukhyamantri Khiladi Protsahan Yojana 1.00 0.00 1.00 0.00
21 6425-Chief Minister Polytechnic Quality Development 5.00 0.00 5.00 0.00
Scheme
22 6435- Chief Minister Assistance to Special Higher 0.01 0.00 0.01 0.00
Education
23 6436- Mukhyamantri Technology Incentive & 1.00 0.00 1.00 0.00
Development Plan
24 6913-Kumbhkar Terakota craft scheme 1.00 0.00 1.00 0.60
25 7296- Sport Academy 4.09 0.00 4.09 1.71
26 7361- Sabala Yojana 7.16 0.00 7.16 2.86
27 7363-Youth Career Development Scheme 12.03 3.00 15.03 5.33
28 7366-Civil Services Examination incentive Schemes 0.28 0.00 0.28 0.02
29 7430-Design and Development Education for Craft 0.55 0.00 0.55 0.22
30 7435-Non-organised Labour, Security and Welfare 38.50 0.00 38.50 33.95
Board
31 7627-Professional Training Schemes 8.80 0.00 8.80 3.52
32 7632-Yuva Kshamta Vikas Yojana 4.60 0.00 4.60 0.18
33 7683-Mukhya mantri kaushal vikas yojna 84.35 0.00 84.35 11.20
34 7751-Swami Vivekanand Gyandeep Scheme 7.19 0.00 7.19 4.35
35 7867-Pradhan Mantri Kaushal Vikas Yojana 22.14 0.00 22.14 0.00

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 Appendices

36 7884-Pradhan Mantri Matra Vandana 50.91 0.00 50.91 34.59

37 7914-Kaushal Self - Employment Scheme 0.75 0.00 0.75 0.00
38 8076- Industrial and Technical Institution outside the 0.07 0.00 0.07 0.02
State
39 8638- State Sponsered Micro Irrigation Scheme 7.00 0.00 7.00 0.95
40 8643- Mukhyamantri Ucch Shiksha Byaj Anudan Yojana 4.00 0.00 4.00 4.00
41 8899-Pashudhan Mitra Yojana 3.30 0.00 3.30 2.93
42 8918-Vivekanand Yuva Protsahan Yojana 7.00 0.00 7.00 7.00
43 8928-Mukhya Mantri Yuva Swarojgar Yojana 3.01 0.00 3.01 2.23
44 8935-Livelihood College 16.07 0.00 16.07 8.18
45 8977-Asangathith Safai Karmkar Kalyan Mandal 8.00 0.00 8.00 2.04
46 8979-Integrated Umbrella Scheme 125.01 4.80 129.81 83.43
47 8989-Contract Labour , Domestic Laborious and 15.00 0.00 15.00 6.09
porter Welfare Assembly
48 9369- Mahila Jagriti Sivir 4.85 0.00 4.85 5.39
49 9381-Book Bank 0.10 0.00 0.10 0.03
50 9805-Free Distribution of Books and Stationary to Tribal 0.85 0.00 0.85 0.76
Students
Total 1,419.84 44.80 1,464.64 719.73

Appendix 3.3
(Reference: Paragraph 3.3.5)
Details of Major policy initiatives/new schemes (`1 crore or more in each case)
where entire Grant was not utilized
(` in crore)
Sl. Original Supple- Total
Scheme Number and Name Expenditure
No. Budget mentary Budget
1 6472- Earth Water Conservation Work 1.00 0.00 1.00 0.00
2 6479- R.C.P.L.W.E.(R.R.P.) Phase - 3 12.00 0.00 12.00 0.00
3 6482- Establishment of Wi-Fi Facility in 2.50 0.00 2.50 0.00
Ministries and Head of Department Buildings
4 6484- Mukhyamantri Garsa Development Scheme 10.00 0.00 10.00 0.00
5 6493- National E-Vahan Application (NEVA) 5.00 0.00 5.00 0.00
6 6597- Lift Irrigation Project (Mega Project) 1.60 0.00 1.60 0.00
7 6601- Expenditure of Interest Earned on Deposit 0.00 5.00 5.00 0.00
Amt. & Administrative Service Fee for land
Acquisition
Total 32.10 5.00 37.10 0.00

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Appendix 3.4
(Reference: Paragraph 3.5.2)
Details of cases where supplementary provision (`50 lakh or more in each case) proved unnecessary

(` in crore)
Saving out
Grant Original Actual
Name of the Grant Supplementary of Original
No. Budget Expenditure
Budget
Revenue (Voted)
1 General Administration 265.68 23.70 231.96 -33.72
Other expenditure pertaining to General 346.18 5.87 159.28 -186.90
2
Administration Department
3 Police 5,073.18 15.83 4,471.03 -602.15
Other expenditure pertaining to Home 88.95 3.69 60.77 -28.18
4
Department
Expenditure Pertaining To Commercial Tax 277.23 7.50 216.84 -60.39
7
Department
8 Land Revenue and District Administration 918.94 201.00 806.38 -112.56
10 Forest 1,768.92 211.35 1,716.80 -52.11
Expenditure Pertaining To Commerce and 223.67 5.86 190.98 -32.69
11
Industry Department
23 Water Resources Department 620.31 3.11 474.32 -145.99
Expenditure Pertaining To Culture 48.85 2.30 40.64 -8.21
26
Department
27 School Education 5,140.25 57.29 4,586.48 -553.77
29 Administration of Justice and Elections 478.05 9.71 364.16 -113.89
Expenditure pertaining to Panchayat and 3,049.75 160.79 2,024.41 -1,025.34
30
Rural Development Department
34 Social Welfare 107.54 21.00 97.86 -9.68
36 Transport 83.77 3.20 50.35 -33.42
Expenditure Pertaining to Food, Civil 2,333.05 41.50 2,024.51 -308.53
39 Supplies And Consumer Protection
Department
41 Tribal Area Sub-Plan 16,242.98 601.19 13,884.41 -2,358.57
51 Religious Trusts And Endowments 15.24 0.74 7.22 -8.02
Expenditure pertaining to Women 1,016.19 6.65 748.67 -267.53
55
and Child Welfare
Special Component Plan for 5,136.72 379.01 4,489.82 -646.90
64
Scheduled Castes
Urban Administration And Development 895.12 258.62 774.38 -120.74
69
Department-Urban Welfare
Expenditure pertaining to Medical 903.03 7.00 672.67 -230.35
79
Education Department
Financial Assistance To Three Tier 2,596.64 75.00 2,524.62 -72.01
80
Panchayati Raj Institutions
Total-Revenue Voted 47,630.23 2,101.91 40,618.57 -7,011.67
Capital (Voted)
1 General Administration 52.64 3.07 48.96 -3.68

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 Appendices

3 Police 130.84 2.90 98.96 -31.88

8 Land Revenue And District Administration 231.89 4.00 4.86 -227.03
17 Co-operation 0.50 3.92 0.50 0.00
19 Public Health and Family Welfare 67.66 1.60 59.79 -7.87
41 Tribal Area Sub-Plan 3,233.04 395.19 2,516.54 -716.50
45 Minor Irrigation Works 374.51 1.01 320.75 -53.76
79 Expenditure pertaining to Medical 135.64 83.53 61.76 -73.88
Education Department
Total-Capital Voted 4,226.72 495.21 3,112.12 -1,114.60
Grant Total 51,856.95 2,597.12 43,730.69 -8,126.26

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Appendix 3.5
(Reference: Paragraph 3.5.4)
List of subheads where Entire budget provision was not utilized (`10 crore and above)
(` in crore)
Sl. Scheme Name Original Supplementary Total
No. Budget Budget
1 30- 2216- 3- 105- 701- 7807- Pradhan Mantri Awas Yojana 620.00 0.00 620.00
(Rural)
2 CH1- 6003- 110- 637- Ways and Means Advances 581.88 0.00 581.88
3 41- 2216- 3- 796- 105- 702- 7807- Pradhan Mantri Awas 456.00 0.00 456.00
Yojana (Rural)
4 CH2- 2049- 1- 101- 2199- New Market Loan 275.00 0.00 275.00
5 CH1- 6003- 110- 779- Advance to meet Shortfall 250.00 0.00 250.00
6 42- 5054- 4- 796- 337- 702- 7842- R.R.P. PHASE - II 230.00 0.00 230.00
7 30- 2215- 2- 107- 701- 7610- Swachchh Bharat Abhiyan 200.00 0.00 200.00
8 41- 2215- 2- 796- 107- 702- 7610- Swachchh Bharat 152.00 0.00 152.00
Abhiyan
9 64- 2216- 3- 789- 105- 703- 7807- Pradhan Mantri Awas 144.00 0.00 144.00
Yojana (Rural)
10 80- 2853- 2- 800- 101- 6299- Transfer of Revenue received 139.37 0.00 139.37
from minor mineral of rural areas to Panchayats
11 79- 4210- 3- 105- 701- 6386- Medical Dental Physiotherapy 100.00 0.00 100.00
College
12 2- 4070- 800- 101- 6452- Chief Minister Infrastructure 80.00 0.00 80.00
Maintenance & Upgradation Authority
13 8- 2029- 797- 6754- Transfer to Infrastructure Development 75.40 0.00 75.40
Funds
14 58- 2245- 2- 122- 6457- Expenditure from State Disaster 70.00 0.00 70.00
Renewal Fund
15 3- 2055- 115- 600- 7918- Assistance to Naxal affected 66.66 0.00 66.66
Districts
16 44- 2202- 3- 1- 701- 8971- National Higher Education 65.96 0.00 65.96
Mission
17 8- 2029- 797- 6753- Transfer of Environment Fund 57.82 0.00 57.82
18 64- 4225- 1- 789- 102- 603- 7626- Local Development 51.77 4.00 55.77
Programme by Special Central Assistance
19 41- 4202- 1- 796- 202- 1002- 1400- Vivekanand Gurukul 55.00 0.00 55.00
Unanyan Yojna
20 15- 2853- 2- 789- 800- 103- 6299- Transfer of Revenue 52.85 0.00 52.85
received from minor mineral of rural areas to Panchayats
21 82- 2853- 2- 796- 800- 102- 6299- Transfer of Revenue 51.95 0.00 51.95
received from minor mineral of rural areas to Panchayats
22 12- 4801- 5- 52- 101- 6378- Scada Scheme 50.00 0.00 50.00
23 58- 2245- 80- 103- 4849- Transfer from National Disaster 50.00 0.00 50.00
Contingency Fund to Disaster Relief Fund
24 75- 4700- 9- 800- 311- 5516- Major Irrigation Project 50.00 0.00 50.00
Construction work (NABARD)

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 Appendices

25 81- 2217- 5- 191- 7675- Grant received under the 48.82 0.00 48.82
recommendation of 14th Finance Commission
26 64- 2215- 2- 789- 107- 703- 7610- Swachchh Bharat 48.00 0.00 48.00
Abhiyan
27 8- 2029- 102- 101- 7787- E-Dharti 45.00 0.00 45.00
28 8- 5054- 5- 337- 510- 6477- Environment Cess Fund 40.00 0.00 40.00
29 58- 2245- 80- 800- 6457- Expenditure from State Disaster 36.00 0.00 36.00
Renewal Fund
30 8- 4059- 80- 51- 510- 6476- Infrastructure Development 35.00 0.00 35.00
Cess Fund
31 8- 4059- 80- 51- 510- 6477- Environment Cess Fund 35.00 0.00 35.00
32 24- 3054- 80- 800- 6464- Payment of Interest for Loan 30.00 0.00 30.00
Taken by C.G.R.I.D.C.L. for Construction Work
33 30- 5054- 4- 337- 101- 4855- Pradhan Mantri Gram Sadak 30.00 0.00 30.00
Yojana
34 41- 2406- 1- 796- 105- 802- 5231- Grant to Small Forest 30.00 0.00 30.00
Produce Federation for Small Forest Produce Work
35 41- 5054- 4- 796- 337- 102- 4855- Pradhan Mantri Gram 30.00 0.00 30.00
Sadak Yojana
36 58- 2245- 1- 101- 7710- Assistance for Destruction of 30.00 0.00 30.00
Harvest
37 64- 2225- 1- 789- 102- 603- 7626- 27.00 0.00 27.00
38 64- 2217- 80- 789- 191- 703- 7706- Amrit Mission 26.40 0.00 26.40
39 41- 2202- 2- 796- 109- 1002- 5480- Extension of Facilities 25.26 0.00 25.26
in Tribal Areas Article 275(i)
40 11- 4851- 101- 101- 5385- Establishment of New Industrial 25.05 0.00 25.05
Area
41 19- 2210- 6- 200- 101- 6363- Mukhyamantri Vishesh 25.00 0.00 25.00
Swasthya Sahayata Yojana
42 24- 3054- 1- 337- 134- Maintenance and Repairs -Ordinary 23.00 0.00 23.00
Repairs
43 71- 3275- 800- 101- 6818- Swan Project 23.00 0.00 23.00
44 27- 2202- 2- 109- 101- 8659- Recoupment of Tuition Fee in 21.99 0.00 21.99
Non-Government Schools
45 30- 5054- 4- 101- 101- 4871- Construction of Bridges on 20.00 0.00 20.00
P.M.G.S.Y. Roads.
46 41- 4425- 796- 108- 102- 7678- Share Capital for Co- 20.00 0.00 20.00
operative Societies
47 41- 5054- 4- 796- 101- 102- 4871- Construction of Bridges 20.00 0.00 20.00
on P.M.G.S.Y. Roads.
48 42- 5054- 4- 796- 101- 702- 7842- R.R.P. PHASE - II 20.00 0.00 20.00
49 64- 2225- 1- 789- 102- 603- 7626- 20.00 0.00 20.00
50 CH1- 6004- 9- 101- 3052- Blocks Loans 20.00 0.00 20.00
51 41- 2210- 6- 796- 200- 102- 6363- Mukhyamantri Vishesh 19.00 0.00 19.00
Swasthya Sahayata Yojana
52 41- 2406- 1- 796- 105- 702- 6373- Grant for Small Forest 18.34 0.00 18.34
Produce Processing

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53 81- 2217- 5- 192- 7675- Grant received under the 16.81 0.00 16.81
recommendation of 14th Finance Commission
54 41- 2202- 2- 796- 109- 1002- 5480- Extension of Facilities 16.63 0.00 16.63
in Tribal Areas Article 275(i)
55 69- 2217- 80- 192- 701- 7709- Housing Scheme for All 16.60 0.00 16.60
56 4- 4070- 800- 7718- Emergency Services 16.33 0.00 16.33
57 41- 4202- 1- 796- 202- 1202- 1400- Vivekanand Gurukul 16.00 0.00 16.00
Unanyan Yojna
58 58- 2245- 80- 800- 7408- Efficiency Development Under 16.00 0.00 16.00
State Disaster Management
59 21- 6217- 1- 800- 101- 7883- Water Supply Scheme 15.00 0.00 15.00
60 45- 4702- 101- 101- 3803- Minor and Micro minor 15.00 0.00 15.00
Irrigation schemes
61 71- 5275- 101- 701- 7892- Implementation for Bharat Net 15.00 0.00 15.00
Project
62 81- 2217- 5- 193- 7675- Grant received under the 14.41 0.00 14.41
recommendation of 14th Finance Commission
63 55- 4235- 2- 102- 701- 337- Construction and Repair of 13.34 0.00 13.34
Aganwadi
64 64- 4202- 1- 789- 202- 1203- 1400- Vivekanand Gurukul 12.38 0.00 12.38
Unanyan Yojna
65 41- 4235- 2- 796- 102- 702- 337- Construction and Repair 12.04 0.00 12.04
of Aganwadi
66 42- 5054- 4- 796- 101- 702- 6479- R.C.P.L.W.E.(R.R.P.) 10.40 0.00 10.40
Phase - 3
67 23- 4701- 80- 800- 701- 6354- Dam rehabilitation and 10.00 0.01 10.01
improvement project phase II
68 41- 2230- 3- 796- 3- 702- 7867- Pradhan Mantri Kaushal 10.00 0.00 10.00
Vikas Yojana
69 41- 2235- 2- 796- 102- 702- 5354- Integrated Service 10.00 0.00 10.00
Scheme (Under Externally Aided Project)
70 41- 4210- 1- 796- 196- 102- 1473- District Hospitals 10.00 0.00 10.00
71 41- 4701- 29- 796- 800- 102- 3366- Construction Work of 10.00 0.00 10.00
Medium Projects
72 41- 4702- 796- 800- 702- 6354- Dam rehabilitation and 10.00 0.00 10.00
improvement project phase II
73 47- 2230- 3- 3- 701- 7867- Pradhan Mantri Kaushal Vikas 10.00 0.00 10.00
Yojana
74 58- 2245- 2- 106- 1467- District and other roads 10.00 0.00 10.00
75 58- 2245- 2- 122- 989- Re-establishment and repairs of 10.00 0.00 10.00
damaged irrigation and flood control works
76 64- 2202- 3- 789- 1- 703- 8971- National Higher Education 10.00 0.00 10.00
Mission
Total 5,023.44 4.01 5,027.45

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 Appendices

Appendix 3.6
(Reference: Paragraph 3.5.5)
List of grants having large savings (savings above `100 crore) during the year 2021-22

(` in crore)
Saving
s
Supplem Actual
Gr. Name of the Original Total excludi
e-ntary Expendi- Savings(-) Surrender
No. grant Budget Budget ng
Budget uret
surren
der
Revenue Voted
2 Other 346.18 5.87 352.05 159.28 -192.77 -177.07 -15.69
expenditure
pertaining to
General
Administration
Department
3 Police 5,073.18 15.83 5,089.01 4,471.03 -617.98 -604.18 -13.81
8 Land Revenue 918.94 201.00 1,119.94 806.38 -313.56 -302.95 -10.60
and District
Administration
10 Forest 1,768.92 211.35 1,980.27 1,716.80 -263.46 -262.86 -0.60
13 Agriculture 4,592.85 0.00 4,592.85 4,015.67 -577.19 -577.35 0.16
19 Public Health 2,313.77 954.70 3,268.47 3,005.46 -263.01 -346.26 83.25
and Family
Welfare
20 Public Health 330.15 0.00 330.15 223.59 -106.56 -108.35 1.78
Engineering
23 Water 620.31 3.11 623.42 474.32 -149.10 -149.88 0.78
Resources
Department
24 Public Works- 1,090.63 0.00 1,090.63 636.62 -454.01 -454.05 0.03
Roads and
Bridges
27 School 5,140.25 57.29 5,197.54 4,586.48 -611.06 -620.39 9.33
Education
29 Administration 478.05 9.71 487.76 364.16 -123.60 -124.83 1.23
of Justice and
Elections
30 Expenditure 3,049.75 160.79 3,210.54 2,024.41 -1,186.13 -1,187.21 1.08
pertaining to
Panchayat
and Rural
Development
Department
33 Tribal Welfare 4,879.42 0.00 4,879.42 4,559.66 -319.76 -330.70 10.94
39 Expenditure 2,333.05 41.50 2,374.55 2,024.51 -350.03 -349.99 -0.04
pertaining to
Food Civil
Supplies and
Consumer
Protection Dept.

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State Finances Audit Report for the Year ended 31 March 2022

41 Tribal Area 16,242.98 601.19 16,844.17 13,884.41 -2,959.77 -3,091.67 131.91

Sub-Plan
44 Higher 801.52 0.00 801.52 631.93 -169.59 -179.13 9.55
Education
47 Technical 350.01 0.00 350.01 230.60 -119.42 -117.26 -2.16
Education and
Manpower
Planning
Department
55 Expenditure 1,016.19 6.65 1,022.85 748.67 -274.18 -274.22 0.04
pertaining to
Women and
Child Welfare
58 Expenditure on 1,110.58 0.00 1,110.58 880.27 -230.31 -244.83 14.52
Relief on
account of
Natural
Calamities and
Scarcity
64 Special 5,136.72 379.01 5,515.73 4,489.82 -1,025.90 -1,031.77 5.87
Component
Plan for
Scheduled
Castes
67 Public Works- 708.72 0.00 708.72 594.51 -114.21 -64.68 -49.53
Buildings
69 Urban 895.12 258.62 1,153.74 774.38 -379.36 -379.36 0.00
Administration
and
Development
Department-
Urban Welfare
79 Expenditure 903.03 7.00 910.03 672.67 -237.35 -182.59 -54.76
pertaining to
Medical
Education
Department
80 Financial 2,596.64 75.00 2,671.64 2,524.62 -147.01 -168.95 21.93
Assistance to
Three Tier
Panchayati Raj
Institutions
Total 62,696.96 2,988.61 65,685.57 54,500.26 -11,185.31 -11,330.53 145.21
Revenue Charged
CH2 Interest 6,440.27 277.55 6,717.82 6,215.14 -502.69 -502.69 0.00
Payments and
Servicing of
Debt
Total 6,440.27 277.55 6,717.82 6,215.14 -502.69 -502.69 0.00
Capital Voted
8 Land Revenue 231.89 4.00 235.89 4.86 -231.03 -231.71 0.68
and District
Administration

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 Appendices

11 Expenditure 115.40 0.00 115.40 8.13 -107.27 -106.81 -0.46

pertaining to
Commerce and
Industry
20 Public Health 471.48 275.29 746.77 529.73 -217.04 -217.05 0.00
Engineering
21 Expenditure 243.45 0.00 243.45 102.59 -140.86 -140.86 0.00
pertaining to
Housing and
Environment
Department
23 Water 519.16 0.12 519.28 232.25 -287.03 -287.86 0.83
Resources
Department
24 Public Works- 1,537.81 0.00 1,537.81 1,398.67 -139.14 -154.35 15.22
Roads and
Bridges
30 Expenditure 929.90 0.00 929.90 783.78 -146.12 -142.33 -3.78
pertaining to
Panchayat and
Rural
Development
Department
41 Tribal Area 3,233.04 395.19 3,628.23 2,516.54 -1,111.69 -1,131.12 19.44
Sub-Plan
42 Public Works 960.71 0.00 960.71 545.71 -415.00 -420.27 5.27
relating to
Tribal Area
Sub-Plan-Roads
and Bridges
64 Special 997.13 272.17 1,269.30 1,071.93 -197.36 -203.03 5.67
Component
Plan for
Scheduled
Castes
67 Public Works- 785.44 0.01 785.45 307.90 -477.54 -486.27 8.73
Buildings
75 NABARD 699.06 0.00 699.06 158.67 -540.39 -542.49 2.10
Aided Projects
pertaining to
Water
Resources
Department
76 Externally 940.15 0.00 940.15 806.81 -133.34 -132.04 -1.30
Aided Projects
pertaining to
Public Works
Department
79 Expenditure 135.64 83.53 219.17 61.76 -157.41 -157.32 -0.09
pertaining to
Medical
Education
Department
Total 11,800.25 1,030.31 12,830.56 8,529.35 -4,301.22 -4,353.52 52.31
Grand Total 80,937.49 4,296.47 85,233.96 69,244.74 -15,989.22 -16,186.74 197.52

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Appendix 3.7
(Reference: Paragraph 3.5.5)
List of grants having large savings (above `500 crore) during the year 2021-22

(` in crore)
Savings
Supplem Actual Saving(-) excludi
Gr. Name of the Original Total Surren-
e-ntary Expenditur /Excess(+ ng
No. grant Budget Budget der
Budget e ) surrend
er
Revenue (Voted)
3 Police 5,073.18 15.83 5,089.01 4,471.03 -617.98 -604.18 -13.81
13 Agriculture 4,592.85 0.00 4,592.85 4,015.67 -577.19 -577.35 0.16
27 School 5,140.25 57.29 5,197.54 4,586.48 -611.06 -620.39 9.33
Education
30 Expenditure 3,049.75 160.79 3,210.54 2,024.41 -1,186.13 -1,187.21 1.08
pertaining to
Panchayat
and Rural
Development
41 Tribal Area 16,242.98 601.19 16,844.17 13,884.41 -2,959.77 -3,091.67 131.91
Sub-Plan
64 Special 5,136.72 379.01 5,515.73 4,489.82 -1,025.90 -1,031.77 5.87
Component
Plan for
Scheduled
Castes
Total - Revenue Voted 39,235.73 1,214.11 40,449.84 33,471.81 -6,978.02 -7,112.56 134.54
Revenue (Charged)
CH2 Interest 6,440.27 277.55 6,717.82 6,215.14 -502.69 -502.69 0.00
Payments and
Servicing of
Debt
Total- Revenue 6,440.27 277.55 6,717.82 6,215.14 -502.69 -502.69 0.00
Charged
Capital (Voted)
41 Tribal Area 3,233.04 395.19 3,628.23 2,516.54 -1,111.69 -1,131.12 19.44
Sub-Plan
75 NABARD 699.06 0.00 699.06 158.67 -540.39 -542.49 2.10
Aided Projects
pertaining to
Water
Resources
Department
Total - Capital Voted 3,932.10 395.19 4,327.29 2,675.21 -1,652.08 -1,673.61 21.54
Grand Total 49,608.10 1,886.85 51,494.95 42,362.16 -9,132.79 -9,288.87 156.08

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Appendix 3.8
(Reference: Paragraph 3.5.5)
Details of surrender of funds in excess of (`10 crore) at the end of March 2022

(` in crore)
Original Supplem Total Actual Saving (-)/ Amount
Grant Name entary Provisions Excess (+) Surrendere
d
1-General administration 355.13 26.87 382.00 309.17 -72.83 -73.83
02-Other expenditure 426.25 5.87 432.11 159.28 -272.83 -257.07
pertaining to General
Administration
Department
3-Police 5,204.98 19.73 5,224.71 4,571.73 -652.98 -639.18
4-Other expenditure 110.50 3.69 114.19 63.45 -50.73 -49.06
pertaining to Home
Department
5-Jail 195.86 0.00 195.86 157.63 -38.23 -37.81
6-Finance 6,725.38 250.30 6,975.68 7,565.59 589.91 -38.29
7-Commercial Tax 344.50 7.50 352.00 283.32 -68.68 -42.80
Department
8-Land Revenue and 1,151.18 205.00 1,356.18 811.24 -544.94 -535.02
District administration
9-Expenditure pertaining 21.24 0.00 21.24 7.91 -13.33 -13.32
to revenue department
10-Forest 1,789.02 211.35 2,000.37 1,735.19 -265.19 -264.63
11-Expenditure 339.20 5.86 345.07 199.12 -145.95 -152.84
pertaining to Commerce
and Industry
12-Energy 2,819.48 107.42 2,926.90 2,821.57 -105.33 -105.28
13-Agriculture 4,604.71 0.00 4,604.71 4,018.95 -585.76 -585.91
14-Animal Husbandry 474.02 0.00 474.02 369.24 -104.78 -105.19
15-PRI under special 166.35 0.00 166.35 72.00 -94.35 -94.35
component plan for SC
16-Fisheries 82.39 0.29 82.68 68.09 -14.59 -13.06
17-Co-operation 243.87 3.92 247.79 199.24 -48.55 -48.49
18-Labour 215.76 0.00 215.76 167.17 -48.59 -48.57
19-Public Health and 2,381.85 957.33 3,339.18 3,065.56 -273.62 -357.76
Family Welfare
20-Public Health 826.74 275.29 1,102.03 771.74 -330.29 -332.08
Engineering
21-Housing and 546.55 1.00 547.55 404.36 -143.19 -143.15
Environment Department
23-Water Resources 1,140.04 3.23 1,143.27 706.66 -436.61 -438.22
Department
24-Public works-roads 2,648.54 0.00 2,648.54 2,051.96 -596.59 -611.84
and bridges
25-Mineral Resources 486.70 0.00 486.70 338.25 -148.45 -148.45
26-Expenditure related to 51.60 2.30 53.90 40.67 -13.23 -13.30
Culture Department

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State Finances Audit Report for the Year ended 31 March 2022

27-School Education 5,177.45 57.29 5,234.74 4,619.58 -615.16 -624.49

29-Administration of 573.05 10.51 583.56 431.64 -151.92 -154.53
Justice and elections
30-Panchayat and Rural 3,979.84 160.79 4,140.62 2,808.19 -1,332.44 -1,329.73
Development
31-Planning, Economic 52.71 0.00 52.71 31.45 -21.26 -21.28
and Statistics
Department
32-Public relations 234.23 0.00 234.23 222.45 -11.78 -11.70
department
33-Tribal Welfare 4,885.38 0.00 4,885.38 4,560.60 -324.78 -335.72
34-Social Welfare 110.54 21.00 131.54 97.96 -33.58 -33.99
36-Transport 96.24 3.20 99.44 53.36 -46.07 -43.43
37-Tourism 116.05 0.00 116.05 103.55 -12.50 -12.50
39-Food Civil Supplies 2,357.07 75.00 2,432.07 2,069.13 -362.94 -362.90
and Consumer
Production
41-Tribal Area Sub-Plan 19,534.49 1,021.84 20,556.33 16,474.79 -4,081.55 -4,232.89
42-Public Works relating 960.71 0.00 960.71 545.71 -415.00 -420.27
to Tribal Area Sub-Plan-
Roads and Bridges
43-Sports and Youth 72.34 0.00 72.34 36.93 -35.41 -35.41
Welfare
44-Higher Education 807.75 0.00 807.75 631.99 -175.76 -185.31
45-Minor Irrigation 453.98 1.01 455.00 390.85 -64.15 -63.53
Works
46-Science and 26.55 2.23 28.78 11.33 -17.45 -17.45
Technology
47-Technical Education 372.62 0.00 372.62 240.72 -131.90 -129.84
and man power planning
54-Expenditure 255.00 0.20 255.20 236.89 -18.31 -24.61
pertaining to Agriculture
Research and Education
55-Women and Child 1,049.86 6.65 1,056.51 751.34 -305.17 -305.21
Welfare
56-Rural Industries 117.24 0.00 117.24 91.16 -26.07 -25.87
58-Relief on account of 1,110.78 0.00 1,110.78 880.27 -230.51 -245.03
Natural Calamities and
Scarcity
64-Special Component 6,157.17 659.22 6,816.39 5,589.87 -1,226.52 -1,238.06
plan for SC
65-Aviation Department 58.48 14.00 72.48 60.30 -12.18 -12.19
66-Welfare of backward 256.37 0.00 256.37 186.36 -70.00 -70.05
classes
67-Public Works- 1,495.02 0.01 1,495.03 902.55 -592.48 -551.69
Buildings
68-Public Works relating 95.05 0.00 95.05 56.79 -38.26 -38.46
to Tribal Area Sub-Plan-
Buildings

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 Appendices

69-Urban Administration 895.12 258.62 1,153.74 774.38 -379.36 -379.36

and Development
Department-Urban
Welfare
71-Information 185.11 50.00 235.11 147.82 -87.29 -87.29
technology and
Biotechnology
75-NABARD aided 699.06 0.00 699.06 158.67 -540.39 -542.49
projects pertaining to
WRD
76-Externally Aided 940.15 0.00 940.15 806.81 -133.34 -132.04
Projects pertaining to
Public Works
Department
79-Medical Education 1,038.70 90.53 1,129.23 734.43 -394.79 -339.91
80-Financial Assistance 2,729.64 75.00 2,804.64 2,588.29 -216.35 -237.19
to three-tier PRI
81-Financial Assistance 2,378.78 214.11 2,592.89 2,513.10 -79.79 -79.79
to urban bodies
82-Financial Assistance 325.65 0.00 325.65 149.50 -176.15 -177.29
to Three Tier Panchayati
Raj Institutions under
Tribal area Sub-Plan
CH1-Public Debt. 5,376.37 0.00 5,376.37 8,845.29 3,468.93 -747.58
CH2-Interest Payments 6,440.27 277.55 6,717.82 6,215.14 -502.69 -502.69
and Servicing of Debt
Total 1,04,766.67 5,085.71 1,09,852.39 95,978.32 -13,874.07 -18,901.27

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Appendix 3.9
(Reference: Paragraph 3.5.6)
Sub-Heads requiring Explanation for Variation in Appropriation Accounts

Sub-Heads
Sub- Explanation
Sl. No. Grant Description requiring
Heads received
explanation
1 1- General administration 39 17 12
2 2-Other expenditure pertaining to General 16 9 4
Administration Department
3 3- Police 35 25 18
4 4-Other expenditure pertaining to General 20 13 7
Administration Department
5 5-Jail 5 4 1
6 6-Finance 31 18 0
7 7-Commercial Tax Department 24 11 4
8 8-Land Revenue and District administration 33 27 11
9 9-Expenditure pertaining to revenue department 8 5 5
10 10-Forest 63 34 12
11 11-Expenditure pertaining to Commerce and 43 17 0
Industry
12 12-Energy 34 11 9
13 13-Agriculture 76 49 46
14 14-Animal Husbandry 52 21 18
15 15-PRI under special component plan for SC 1 5 4
16 16-Fisheries 15 5 5
17 17-Co-operation 19 6 6
18 18-Labour 19 13 8
19 19-Public Health and Family Welfare 53 34 23
20 20-Public Health Engineering 79 21 11
21 21-Housing and Environment Department 14 15 13
22 22-Urban administration and development 4 4 3
department-urban bodies
23 23-Water Resources Department 37 41 28
24 24-Public works-roads and bridges 30 34 19
25 25-Mineral Resources 10 9 9
26 26-Expenditure pertaining to Culture Department 30 9 5
27 27-School Education 61 35 31
28 28-State legislature 6 5 1
29 29-Administration of Justice and elections 31 21 19
30 30-Panchayat and Rural Development 31 24 17
31 31-Planning, Economic and Statistics 9 6 1
Department
32 32-Public relations department 14 6 6
33 33-Tribal Welfare 16 11 5
34 34-Social Welfare 44 11 1

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 Appendices

35 35-Rehabilitation 6 1 0
36 36-Transport 21 10 7
37 37-Tourism 5 5 5
38 39-Food Civil Supplies and Consumer 27 14 8
Production
39 41-Tribal Area Sub-Plan 398 212 139
40 42-Public works relating to tribal area sub-plan 22 13 7
roads and bridges
41 43-Sports and Youth Welfare 15 12 12
42 44-Higher education 29 13 11
43 45-Minor Irrigation Works 18 9 6
44 46-Science and Technology 1 6 6
45 47-Technical Education and man power planning 31 20 12
46 49-Scheduled Castes welfare 2 2 0
47 50-Expenditure pertaining to the Departments 8 1 0
implementing 20-point programmes
48 51-Religious trusts and endowments 15 5 4
49 53-Financial assistance to urban bodies under 6 2 2
special component plan for Scheduled Castes
50 54-Expenditure pertaining to Agriculture 4 9 5
Research and Education
51 55-Women and Child Welfare 47 39 16
52 56-Rural Industries 45 10 9
53 57-Externally Aided Projects pertaining to Water 7 8 8
Resources Department
54 58-Relief on account of Natural Calamities and 31 30 11
Scarcity
55 60-Expenditure pertaining to district plan 1 2 0
schemes
56 64-Special Component plan for SC 320 135 98
57 65-Aviation Department 3 3 2
58 66-Welfare of backward classes 39 18 6
59 67-Public Works building 128 55 39
60 68-Public works relating to Tribal area sub-plan 30 12 12
buildings
61 69-Urban Administration and Development 20 9 9
Department-Urban Welfare
62 71-Information technology and Biotechnology 9 11 11
63 75-NABARD aided projects pertaining to WRD 10 18 14
64 76-Externally aided projects pertaining to Public 2 6 2
Works Department
65 79-Medical Education 34 28 0
66 80-Financial Assistance to three-tier PRI 48 15 12
67 81-Financial Assistance to urban bodies 39 16 16
68 82-Financial Assistance to Three Tier Panchayati 15 9 7
Raj Institutions under Tribal area Sub-Plan
69 83-Financial assistance to urban bodies under 21 1 1

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State Finances Audit Report for the Year ended 31 March 2022

Tribal area sub-plan

70 CH1-Public Debt 72 9 5
71 CH2-Interest Payments and Servicing of Debt 19 21 9
Total 2,550 1,365 873

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 Appendices

Appendix 3.10
(Reference: Paragraph 3.5.7)
Excess Expenditure over provisions for the years 2000-01 to 2020-21

(` in crore)
Year No. of Grants/ Grant/ Appropriation numbers Amount of
Appropriations excess
2000-01 11 Grants 2, 14, 23, 24, 33, 34, 60, 71, 80, 82 and 83
2 Appropriations 6 and 24 10.21
2001-02 14 Grants 6, 14, 15, 17, 23, 24, 30, 33, 45, 54, 60, 67, 71 and 83
2 Appropriations 16 and 25 115.90
2002-03 8 Grants 10, 15, 24, 33, 37, 45, 58 and 82
2 Appropriations 20 and 67 114.59
2003-04 4 Grants 12, 33, 40 and 67
2 Appropriations Interest Payments and 6 591.12
2004-05 4 Grants 15, 24, 67 and 81
5 Appropriations Interest Payments, Public Debt, 6, 10 and 42 133.36
2005-06 4 Grants 4, 15, 24 and 39
2 Appropriations 6 and 23 23.27
2006-07 4 Grants 4, 24, 67 and 82
1 Appropriation 33 5.13
2007-08 3 Grants 23, 33 and 60
3 Appropriations 13, 24 and 36 15.99
2008-09 9 Grants 6, 23, 24, 40, 67, 75, 76, 80 and 82
1 Appropriation 23 115.26
2009-10 10 Grants 3, 6, 22, 23, 24, 25, 49, 64, 76 and 80
5 Appropriations 3, 12, 13, 43 and 67 216.77
2010-11 1, 2, 6, 7, 8, 9, 12, 18, 23, 25, 29, 30, 39, 40, 45, 49, 56, 57,
22 Grants
58, 75 82 and Interest Payments
6 Appropriations Public Debt, 1, 20, 23, 29 and 36 293.78
2011-12 1, 2, 6, 7, 15, 17, 18, 21, 22, 23, 27, 29, 34, 40, 43, 45, 47, 50,
24 Grants
53, 55, 66, 80, 81 and 83
1 Appropriation 29 498.09
2012-13 2 Grants 40 and 45
2 Appropriations 6 and 55 0.96
2013-14 3 Grants 06, 12 and 60
3 Appropriations 06, 14 and 27 178.96
2014-15 4 Grants 06, 19, 33 and 80
2 Appropriations 06 and Public Debt 833.54
2015-16 3 Grants 06, 12 and 50
2 Appropriations 41 and Interest Payments 98.24
2016-17 2 Grants 06 and 50 0.92
3 Appropriations 06, 55 and Interest payments and servicing of debt 11.46
2017-18 3 Grants 06,49 and 50 2.24
3 Appropriations 14,33 and 55 0.37

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State Finances Audit Report for the Year ended 31 March 2022

2018-19 2 Grants 06 and 50 1.19

4 Appropriations 06,14,33 and 67 0.48
3 Grants 06,33 and 44 646.07
2019-20
3 Appropriations 55, Public Debt and Interest payments and servicing of debt 6,036.62
2 Grants 06 and 83 252.24
2020-21
2 Appropriations 06 and Public Debt 3,179.87
Total 13,376.63

Appendix 3.11
(Reference: Paragraph 3.5.7)
Details of Major Heads having Excess expenditure in 2021-22

(` in crore)
Grant Major Total Expen- Excess
Major Head Description
Number Head Provision diture Expenditure
04 2013 Council of Ministers 6.77 10.43 3.66
06 2071 Pensions And Other Retirement Benefits 6,850.61 7,470.20 619.59
19 2071 Pensions And Other Retirement Benefits 2.30 4.29 1.99
21 6217 Loans For Urban Development 56.25 106.20 49.95
32 2075 Miscellaneous General Services 0.03 0.05 0.02
51 4250 Capital Outlay on Other Social Services 4.50 4.77 0.27
64 2211 Family Welfare 20.20 20.84 0.65
64 4216 Capital Outlay on Housing 0.05 0.21 0.16
67 4250 Capital Outlay on Other Social Services 2.87 3.71 0.84
80 2235 Social Security and Welfare 634.39 655.42 21.03
CH1 6003 Internal Debt of the State Government 5,158.35 8,625.64 3,467.29
CH1 6004 Loans and Advances from the Central Government 218.02 219.66 1.64
Total 12,954.33 17,121.42 4,167.09

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 Appendices

Appendix 4.1
(Reference: Paragraph 4.3)
Details of outstanding Detailed Contingent bills as of 31 March, 2022
(` in crore)
Major Name of the Department Year Pending DC Amount
Head bills
2017-18 01 0.01
2029 Land Revenue
2020-21 01 0.02
2203 Technical Education 2021-22 02 2.40
Welfare of Scheduled Castes,
2225 Scheduled Tribes, Other Backward 2021-22 01 0.10
Classes and Minorities
2019-20 04 1.73
2230 Labor & Employment 2020-21 04 @0.00
2021-22 28 0.03
2017-18 09 0.14
2018-19 32 0.67
2235 Social Security & Welfare 2019-20 44 0.63
2020-21 51 0.43
2021-22 95 0.64
2401 Crop Husbandry 2021-22 63 107.66
2405 Fisheries 2021-22 02 0.01
2425 Co-operation 2021-22 03 72.15
2017-18 01 *0.00
2701 Medium Irrigation
2021-22 01 #0.00
2018-19 01 $0.00
2851 Village & Small Industries
2021-22 02 0.08
2019-20 06 0.05
2852 Industries 2020-21 03 0.03
2021-22 02 0.06
Total 356 186.85
*DC amounting `4,190.00, #DC amounting `9,280.00, @DCamounting `21,500.00, $DC amounting `9,790.00.

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State Finances Audit Report for the Year ended 31 March 2022

Appendix: 4.2
(Reference: Paragraph 4.14)
Department/category wise details in respect of case of loss to Government due to theft, defalcation, loss
of Government property/material
(` in lakh)
Sl. Name of Theft Cases Defalcation Cases Loss of TOTAL
No. Department Government
property/material
No. of Amount No. of Amount No. of Amount No. of Amount
cases Cases Cases Cases
1 2 3 4 5 6 7 8 9 10
1. Higher Education 12 10.42 2 0.62 3 2.51 17 13.55
2.
Art & Culture 1 0.81 0 0.00 1 0.00 2 0.81
3. District
1 0.67 4 0.79 0 0.00 5 1.46
Administration
4. Treasury and
Accounts 3 0.19 0 0.00 3 11.81 6 12.00
Administration
5. Rural
4 1.08 2 0.05 14 16.7 20 17.83
Development
6. Panchayat Raj And
0 0.00 0 0.00 2 1.00 2 1.00
Social Welfare
7.
School Education 20 12.81 19 156.26 19 67.09 58 236.16
8.
Police 28 6.56 5 19.45 234 28.41 267 54.42
9. Health and Family
4 0.30 1 0.09 7 0.85 12 1.24
Welfare
10. Land Revenue
2 0.50 8 1.36 2 0.18 12 2.04
(Tehsil Dept.)
11. Animal Veterinary
8 1.8 1 0.10 212 16.40 221 18.30
Service
12.
Co-operation 0 0.00 1 96.26 0 0.00 1 96.26
13. Woman and Child
1 3.50 0 0.00 2 0.31 3 3.81
Welfare
14. Dairy
1 0.20 1 0.02 0 0.00 2 0.22
Development
15. Village & Small
Scale Industries 0 0.00 0 0.00 1 0.37 1 0.37
(Resham) Dept.
16. Law and
6 0.39 1 7.79 0 0.00 7 8.18
Legislative Dept.
17. Labour and
13 4.93 0 0 12 52.09 25 57.02
Employment
18. Food Civil Supply
and Consumer 0 0.00 1 0.07 3 0.15 4 0.22
Protection
19.
Crop Husbandry 0 0.00 0 0.00 3 0.48 3 0.48
20. Welfare of SC ST
and other 3 1.14 4 20.47 8 1.24 15 22.85
Backward Classes
21. Health and
4 0.76 9 34.84 5 10.29 18 45.89
Medical Services

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 Appendices

22.
Forest 3 5.71 0 0 949 949.03 952 954.74
23.
PWD 2 0.24 0 0 477 10,269.69 479 10,269.93
24.
WRD 7 1.25 0 0 17 543.10 24 544.35
25. Finance and
Statistical 1 0.05 0 0 0 0.00 1 0.05
Directorate
26.
Collectorate 0 0.00 1 0.07 1 0.30 2 0.37
27. Mining and
Metallurgical 0 0.00 0 0.00 1 0.00 1 0.00
Industries Dept.
28. Cleaning and
0 0 1 189.90 0 0 1 189.90
Water Supply
29. Rural Engineering
0 0 0 0 2 4.41 2 4.41
Services
Total 124 53.31 61 528.14 1978 11,976.41 2163 12,557.86

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Appendix: 4.3
(Reference: Paragraph 4.14)
Year wise analysis of loss to Government
(Cases where financial action was pending at the end of 31 March 2022)
(` in lakh)
Sl. Name Of Number of cases and amount
No. Department 15 to above
05 to 10 10 to 15
Up to 05 20 20 to 25 25
years years
years years years years Total
1 2 3 4 5 6 7 8 9
1 Higher Education 7 4 2 1 3 17
-
(2.23) (8.08) (2.51) (0.12) (0.61) (13.55)
2 Art & Culture 1 1 2
- - - -
(0.00) (0.81) (0.81)
3 District 3 1 1 5
- - -
Administration (1.08) (0.16) (0.22) (1.46)
4 Treasury and
2 1 3 6
Accounts - - -
(0.07) (11.77) (0.16) (12.00)
Administration
5 Rural Development 2 2 1 6 9 20
-
(0.21) (0.75) (0.46) (13.67) (2.74) (17.83)
6 Panchayat And 1 1 2
- - - -
Social Welfare (0.00) (1.00) (1.00)
7 School Education 9 2 7 1 39 58
-
(181.14) (4.93) (21.83) (3.14) (25.12) (236.16)
8 Police 169 47 27 13 3 8 267
(14.04) (6.67) (4.71) (9.03) (3.64) (16.33) (54.42)
9 Health and Family 12 12
- - - - -
Welfare (1.24) (1.24)
10 Land Revenue 2 10 12
(Tehsil) - - - -
(0.98) (1.06) (2.04)
11 Animal Veterinary 90 51 62 13 5 221
-
Service (6.47) (5.55) (3.30) (2.29) (0.69) (18.30)
12 Cooperation 1 1
- - - - -
(96.26) (96.26)
13 Woman and Child 3 3
- - - - -
Development (3.81) (3.81)
14 Dairy Development 1 1 2
- - - -
(0.20) (0.02) (0.22)
15 Village & Small
1 1
Scale Industries - - - - -
(0.37) (0.37)
(Resham) Dept.
16 Law and Legislative 3 2 1 1 7
- -
Dept. (0.29) (0.00) (0.11) (7.78) (8.18)
17 Labour and 5 2 10 2 1 5 25
Employment (1.55) (0.50) (52.21) (1.04) (0.27) (1.45) (57.02)
18 Food Civil Supply
and Consumer 2 2 4
- - - -
Protection (0.11) (0.11) (0.22)
Department
19 Crop Husbandry 1 1 1 3
- - -
(0.00) (0.16) (0.32) (0.48)
20 Welfare of SC ST
1 1 1 12 15
and other Backward - -
(0.17) (0.00) (19.58) (3.10) (22.85)
Classes

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 Appendices

21 Health and Medical 1 1 1 1 6 8 18

Services (0.38) (0.00) (9.85) (0.05) (33.02) (2.59) (45.89)
22 Forest 24 41 28 110 187 562 952
(22.16) (91.44) (34.77) (147.76) (386.56) (272.05) (954.74)
23 PWD 7 216 180 76 479
- -
(186.92) (6,934.93) (2,846.55) (301.53) (10,269.93)
24 WRD 11 4 9 24
- - -
(357.23) (6.00) (181.12) (544.35)
25 Economic and
1 1
Statistical - - - - -
(0.05) (0.05)
Directorate
26 Collectorate 2 2
- - - - -
(0.37) (0.37)
27 Mining and
1 1
Metallurgical - - - - -
(0.00) (0.00)
Industries Dept.
28 Cleaning and Water 1 1
Supply - - - - -
(189.90) (189.90)
29 Rural Engineering 1 0 1 2
Services - - -
(4.00) (0.00) (0.41) (4.41)
316 381 334 234 209 689 2,163
Total
(593.42) (7,228.83) (3,168.45) (488.19) (460.33) (618.64) (12,557.86)

Appendix: 4.4
(Reference: Paragraph 4.14)
Details of recovery in various departments
(Amount in `)
SL. Recovery Major Department Type Year Amount of Amount Recovered
No. Case No. Head Name Miss/Loss/Theft Loss
1 2 3 4 5 6 7 8
1. 111 2055 Police Loss 2022 6,116.00 6,116.00
2. 104 2406 Loss 2021 5,478.00 5,478.00
3. 105 2406 Loss 2021 1,638.00 1,638.00
4. 106 2406 Forest Loss 2021 3,489.00 3,489.00
5. 110 2406 Loss 2022 2,028.00 2,088.00
6. 112 2406 Loss 2022 1,72,000.00 1,72000.00
Total 1,90,749.00 1,90,749.00

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State Finances Audit Report for the Year ended 31 March 2022

Appendix 5.1
Statement showing the financial position and working results of PSUs whose accounts were in arrears for three or more years as on 30
September 2022
(Referred to in paragraph 5.4)
(` in crore)
Equity at close of the year
Net Profit/

Turnover
Sl. Year in Paid 2021-22
Date of Period of loss after
No Sector, Type & Name of the PSU which up Long
Incorporation accounts interest and Equity
. finalized capital $ term Total
tax
loans
1 2 3 4 6 7 8 9 10 11
I. Functional PSUs with arrears of accounts for three or more years/first accounts not received
A. Government Companies
Chhattisgarh State Industrial Development
1 16.11.1981 2017-18 2022-23 -2.47 69.44 1.60 1.60 0.00 1.6
Corporation Limited (CSIDC)
Chhattisgarh Infrastructure Development
2 26.02.2001 2018-19 2020-21 -0.02 0.62 4.20 4.20 0.00 4.2
Corporation Limited (CIDC)
Chhattisgarh State Information
First accounts not
3 Infrastructure Corporation Limited 12.12.2017 submitted
- 0.00 0.00 0.00 0.05 0.00 0.05
(CSIIC)
Total - I -2.49 70.06 5.80 5.85 0.00 5.85
II. Non functional PSUs
A. Government Companies
Chhattisgarh Sondiha Coal Company
4 30.12.2008 2020-21 2021-22 -0.06 0.00 21.94 21.94 0 21.94
Limited (CSCCL)
5 CMDC ICPL Coal Limited (CICL) 11.04.2008 2018-19 2020-21 0.00 0.00 82.60 82.60 231.71 314.31
Total - II -0.06 0.00 104.54 104.54 231.71 336.25
Grand Total (I + II) -2.55 70.06 110.34 110.39 231.71 342.10
$
Includes share application money pending allotment.

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 Appendices

Appendix 5.1 (b)

Statement showing arrears in finalization of accounts by PSUs as on 30 September 2022
(Referred to in paragraph 5.5)

Sl. No. Name of PSUs Year up to which Position of Arrears No. of accounts in
accounts finalised arrears
1. Chhattisgarh State Power Trading Company Limited, 2020-21 2021-22 1
2. Chhattisgarh State Power Transmission Company Limited 2020-21 2021-22 1
3. Chhattisgarh State Power Distribution Company Limited 2020-21 2021-22 1
4. Chhattisgarh State Power Holding Company Limited 2020-21 2021-22 1
5. Chhattisgarh State Industrial Development Corporation 2017-18 2018-19 to 2021-22 4
Limited
6. Chhattisgarh State Civil Supplies Corporation Limited 2020-21 2021-22 1
7. Chhattisgarh Infrastructure Development Corporation 2018-19 2019-20 to 2021-22 3
Limited
8. Chhattisgarh Rajya Van Vikas Nigam Limited 2020-21 2021-22 1
9. Chhattisgarh Mineral Development Corporation Limited 2020-21 2021-22 1
10. Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam 2020-21 2021-22 1
Limited
11. Chhattisgarh State Warehousing Corporation 2020-21 2021-22 1
12. Chhattisgarh Nishakt Jan Vitt Avam Vikas Nigam 2019-20 2020-21 & 2021-22 2
13. CMDC ICPL Coal Limited 2018-19 2019-20 to 2021-22 3
14. Chhattisgarh Sondiha Coal Company Limited 2020-21 2021-22 1
15. Chhattisgarh Medical Services Corporation Limited 2019-20 2020-21 & 2021-22 2
16. Chhattisgarh Police Housing Corporation Limited 2020-21 2021-22 1
17. Chhattisgarh Road and Infrastructure Development 2020-21 2021-22 1
Corporation Limited
18. Nawa Raipur Atal Nagar Smart City Limited 2020-21 2021-22 1
19. Raipur smart City Limited 2019-20 2020-21 to 2021-22 2

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State Finances Audit Report for the Year ended 31 March 2022

20. Bilaspur smart City Limited 2020-21 2021-22 1

21. Chhattisgarh State Information Infrastructure Corporation -- 2017-18 to 2021-22 5
Limited
22. Chhattisgarh State Marketing Corporation Limited 2019-20 2020-21 to 2021-22 2
23. Uttar Chhattisgarh Rajya Vidyut Utpadan Limited 2020-21 2021-22 1
(Earlier: IFFCO C.G. Power Limited)
24. Chhattisgarh Rural Housing Corporation Limited 2019-20 2020-21 to 2021-22 2
Total 40

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 Appendices

Appendix 5.2
Statement showing position of equity and outstanding loans relating to State PSUs as on 31 March 2022
(Referred to in paragraph 5.6.1)
(` in crore)

Sl. Sector & Name of the Name of the Month and Equity$ at close of the year Long term loans outstanding at close Total
No. PSUs Department year of of the year Total
GOCG
incorporati Equity
Equity
on plus
plus
Loans
Loans

GoCG GoI Others£ Total GoCG GoI Others£ Total

1 2 3 4 5 (a) 5 (b) 5 (c) 5 (d) 6 (a) 6 (b) 6 (c) 6 (d) 7 8
Power
1 Chhattisgarh State
Power Generation Energy 19.05.2003 2814.30 0.00 0.00 2814.30 29.21 0.00 6792.57 6821.78 2843.51 9636.08
Company Limited
2 Chhattisgarh State
Power Transmission Energy 19.05.2003 904.71 0.00 0.00 904.71 0.00 0.00 1235.25 1235.25 904.71 2139.96
Company Limited
3 Chhattisgarh State
Power Distribution Energy 19.05.2003 2263.10 0.00 0.00 2263.10 21.17 158.89 1731.13 1911.19 2284.27 4174.29
Company Limited
4 Chhattisgarh State
Power Holding Energy 31.12.2008 609.73€ 0.00 0.00 609.73 0.00 0.00 0.00 0.00 609.73 609.73
Company Limited
5 Chhattisgarh State
Power Trading Energy 30.12.2008 0.05 0.00 0.00 0.05 0.00 0.00 0.00 0.00 0.05 0.05
Company Limited
6 Uttar Chhattisgarh
Rajya Vidyut Utpadan Energy 13.03.2018 0 0 200 200.00 0 0 1.34 1.34 0.00 201.34
Limited (UCRVUL)
Agriculture & Allied

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State Finances Audit Report for the Year ended 31 March 2022

Sl. Sector & Name of the Name of the Month and Equity$ at close of the year Long term loans outstanding at close Total
No. PSUs Department year of of the year Total
GOCG
incorporati Equity
Equity
on plus
plus
Loans
Loans

GoCG GoI Others£ Total GoCG GoI Others£ Total

1 2 3 4 5 (a) 5 (b) 5 (c) 5 (d) 6 (a) 6 (b) 6 (c) 6 (d) 7 8
7 Chhattisgarh Rajya
Van Vikas Nigam Forest 22.05.2001 25.73 0.92 0.00 26.65 0.00 0.00 0.00 0.00 25.73 26.65
Limited
8 Chhattisgarh Rajya
Beej Evam Krishi Agriculture 08.10.2004 0.50 0.00 0.00 0.50 0.00 0.00 29.40 29.40 0.50 19.90
Vikas Nigam Limited
Services
9 Chhattisgarh State
Beverages Corporation Commercial Tax 29.11.2001 0.15 0.00 0.00 0.15 0.00 0.00 0.00 0.00 0.15 0.15
Limited
10 Chhattisgarh State
0.0007
Marketing Corporation Commercial Tax 27.02.2017 0.00 0.00 0.00 239.00 0.00 0.00 239.00 239.00 239.00
@
Limited (CSMCL)
11 Chhattisgarh State Food Civil
Civil Supplies Supplies and
13.03.2001 4.43 0.00 0.00 4.43 0.00 0.00 0.00 0.00 4.43 4.43
Corporation Limited Consumer
Protection
12 Chhattisgarh Medical
Services Corporation Health 07.10.2010 3.45 0.00 0.00 3.45 0.00 0.00 0.00 0.00 3.45 3.45
Limited
13 Chhattisgarh Police
Housing Corporation Home 14.12.2011 2.00 0.00 0.00 2.00 0.00 0.00 591.80 591.80 2.00 593.80
Limited
14 Chhattisgarh State Food Civil
Warehousing Supplies and
02.05.2002 2.02 0.00 2.02 4.04 88.99 0.00 0.00 88.99 91.01 93.03
Corporation Consumer
Protection

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 Appendices

Sl. Sector & Name of the Name of the Month and Equity$ at close of the year Long term loans outstanding at close Total
No. PSUs Department year of of the year Total
GOCG
incorporati Equity
Equity
on plus
plus
Loans
Loans

GoCG GoI Others£ Total GoCG GoI Others£ Total

1 2 3 4 5 (a) 5 (b) 5 (c) 5 (d) 6 (a) 6 (b) 6 (c) 6 (d) 7 8
Chhattisgarh Railway Commerce and
15 07.12.2016 25.5 24.5 0 50.00 0 0 0 0.00 25.50 50.00
Corporation Limited Industries
Chhattisgarh Katghora
Commerce and
16 Dongargarh Railway 29.05.2018 0.00 0.00 2.00 2.00 0 0 0 0.00 0.00 2.00
Industries
Limited
Chhattisgarh Kharsia
Commerce and
17 Naya Raipur Railway 29.05.2018 0.00 0.00 2.00 2.00 0 0 0 0.00 0.00 2.00
Industries
Limited
Infrastructure

18 Chhattisgarh Road and PWD/Urban

Infrastructure Administrative
Development and 11.11.2014 4.90 0.00 0.00 4.90 0.00 0.00 166.09 166.09 4.90 170.99
Corporation Limited Development
Department
19 Nava Raipur Atal Urban
Nagar Smart City Administrative
Corporation Limited and 16.10.2017 0.10 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.10 0.10
Development
Department
20 Bilaspur Smart City Urban
Limited Administrative
and 19.09.2016 0.10 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.10 0.10
Development
Department

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State Finances Audit Report for the Year ended 31 March 2022

Sl. Sector & Name of the Name of the Month and Equity$ at close of the year Long term loans outstanding at close Total
No. PSUs Department year of of the year Total
GOCG
incorporati Equity
Equity
on plus
plus
Loans
Loans

GoCG GoI Others£ Total GoCG GoI Others£ Total

1 2 3 4 5 (a) 5 (b) 5 (c) 5 (d) 6 (a) 6 (b) 6 (c) 6 (d) 7 8
21 Chhattisgarh
Infrastructure
26.02.2001 4.20 0.00 0.00 4.20 0 0 0 0.00 4.20 4.20
Development Commerce and
Corporation Limited Industries
22 Panchayat &
Chhattisgarh Rural
Rural
Housing Corporation 15.03.2018 0.10 0.00 0.00 0.10 0.00 0.00 1681.43 1681.43 0.10 1681.53
Development
Limited (CRHCL)
Department
23 Chhattisgarh State
Industrial Development Commerce and 16.11.1981 0.00 0.00 1.60 1.60
Corporation Limited Industries 1.60 1.60 0.00 0.00 0.00 0.00
24 Raipur Smart City Urban
Limited Administrative
and 16.09.2016 0.10 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.10 0.10
Development
Department
25 Chhattisgarh State
Information Electronic and
12.12.2017 0.05 0.00 0.00 0.05 0.00 0.00 0.00 0.00 0.05 0.05
Infrastructure Information
Corporation Limited Technology
Finance
26 Chhattisgarh Nishakt
Jan Vitt Avam Vikas Social Welfare 04.07.2004 5.00 0.00 0.00 5.00 0.00 0.00 0.00 0.00 5.00 5.00
Nigam
Others
27 Chhattisgarh Mineral
Geology and
Development 07.06.2001 1.00 0.00 0.00 1.00 379.99 0.00 0.00 379.99 380.99 380.99
Mining
Corporation Limited

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 Appendices

Sl. Sector & Name of the Name of the Month and Equity$ at close of the year Long term loans outstanding at close Total
No. PSUs Department year of of the year Total
GOCG
incorporati Equity
Equity
on plus
plus
Loans
Loans

GoCG GoI Others£ Total GoCG GoI Others£ Total

1 2 3 4 5 (a) 5 (b) 5 (c) 5 (d) 6 (a) 6 (b) 6 (c) 6 (d) 7 8
28 Kerwa Coal Limited Geology and
20.01.2015 0.00 0.00 4.90 4.90 0.00 0.00 0.00 0.00 0.00 4.90
Mining
29 CMDC ICPL Coal Geology and
231.71 0.00 314.31
Limited Mining 11.04.2008 0.00 0.00 82.60 82.60 0.00 0.00 231.71
30 Chhattisgarh Sondiha Geology and
0.00 0.00 21.94
Coal Company Limited Mining 30.12.2008 0.00 0 21.94 21.94 0 0 0
Total 6672.82 25.42 315.46 7013.70 758.36 158.89 12460.72 13377.97 7431.18 20391.67
$ Includes share application money pending allotment. £ includes financial institutions, Banks and PSEs etc.
€ `5,982.16 crore out of `6,591.89 crore equity released by State Government to CSPHCL was invested by CSPHCL (Holding Company) in its Subsidiary Companies viz., CSPGCL
(`2,814.30 crore), CSPTCL (`904.71 crore), CSPDCL (`2,263.10 crore) and CSPTrCL (`0.05 crore) as shown at Sl. No. 1, 2, 3 & 5. Therefore, the amount of equity in CSPHCL has been
shown at `609.73 crore net after excluding `5,982.16 crore of investment in Subsidiary Companies.
@ The amount of loan has been received from Chhattisgarh Mineral Development Fund, Mineral Resources Department, GoCG and hence has been considered as GoCG investment.
# `7000

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State Finances Audit Report for the Year ended 31 March 2022

Appendix 5.3
Public Sector Undertakings information on profit from operating activities/other income
(Referred to in paragraph 5.9.1)

Sl.No. Name of State Public Sector Enterprises

PSUs which earned profit only from its operations
1 Chhattisgarh State Power Generation Company Limited
2 Chhattisgarh State Power Transmission Company Limited
3 Chhattisgarh State Warehousing Corporation
4 Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam Limited
5 Chhattisgarh State Marketing Corporation Limited
6 Chhattisgarh Rajya Van Vikas Nigam Limited
7 Chhattisgarh State Beverages Corporation Limited
8 Chhattisgarh Medical Services Corporation Limited
9 Chhattisgarh Nishakt Jan Vitt Avam Vikas Nigam
PSUs which earned profit only from other/extraordinary income
1 Chhattisgarh State Power Holding Company Limited
2 Kerwa Coal Limited

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