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The State Audit Report of the Comptroller and Auditor General (CAG) of India found gross irregularities in the functioning of the Directorate of Municipal Administration (DMA) and said the DMA has parked ₹489 crore in a private bank by violating rules.
Out of the unspent amount of ₹544.62 crore under the Swachh Bharat Mission , the DMA deposited ₹489 crore with ICICI Bank against the laid down procedure of the Finance Department.
The report said disregarding the State Government’s directive, the DMA transferred ₹489 crore with 7.15% interest to the bank which was irregular, said the CAG report on State finances ending March 2021, tabled in the Legislative Assembly on Wednesday.
The State Government has asked its departments to operate transactions only in nationalised banks and the DMA violated the rules, the report said.
The DMA operated a bank account with IDFC First Bank Ltd., Richmond Town branch, Bengaluru, for praking the amount received from Central and State Governments towards implementation of Swacch Bharat Mission, it said.
The Government received ₹1,549 crore for urban local bodies under the 15th Finance Commission during 2020-21. Of this, ₹991 crore was released to ULBs and the amount was deposited in the PD accounts of Deputy Commissioners. Against the release, only ₹80.04 crore was utilised, leaving a balance of ₹910.96 crore (92%) lying unspent in the PD accounts, the CAG said.
Apart from 15th commission grants, the closing balance of PD accounts included the unspent money of ₹1405.21 crore.
Unspent money on children’s programmes
During 2020-21, the Government allocated ₹51,084.28 crore (21%) out of the total budget of ₹2.44 lakh crore towards child-centric programmes. However, the Government unutilised 11% of the allocation (₹5,524.51 crore), the State Audit Report of the Comptroller and Auditor General (CAG) of India said.
It said adequate attention needed to be given to the education and health sectors, as the ratio of expenditure under the sectors to aggregate expenditure was less than the general category States and some of its neighbouring States.
During 2020-21, as against the total provision of ₹2,65,220.73 crore, expenditure incurred was ₹2,42,694.49 crore. This resulted in an unspent sum of ₹22,526.24 crore, the report noted.
