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Rs 34K Cr funds not surrendered, CAG pulls up budgetary violations

Earth News NetworkBy Earth News NetworkApril 4, 2026No Comments4 Mins Read
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Rs 34K Cr funds not surrendered, CAG pulls up budgetary violations
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JAMMU: The Comptroller and Auditor General (CAG) of India has flagged financial management violations in Jammu and Kashmir, revealing that savings amounting to over Rs 34,000 crore were not surrendered by various departments during 2023-24, in violation of prescribed budgetary norms.

The CAG has recommended a series of corrective measures to improve financial management in J&K, stressing the need for realistic budgeting and stronger expenditure controls.

As per the Jammu and Kashmir Budget Manual, departments are required to surrender anticipated savings to the Finance Department.

“It was noticed that savings exceeding Rs 1 crore in each case under 36 Grants and two Appropriations amounting to Rs 34,917.96 crore (32.99 per cent) were not surrendered at all,” the CAG report on finances for the year ended March 31, 2024, said.

The audit further noted that against a total grant appropriation of Rs 1,04,178.32 crore, the actual expenditure stood at Rs 69,260.36 crore across 36 grants, resulting in substantial savings of Rs 34,917.96 crore.

The CAG said that similarly, a total provision for expenditure during 2023-24 was Rs 1,57,212.90 crore.

“The actual gross expenditure during the year was Rs 1,26,054.97 crore (80.18 per cent). This resulted in savings of Rs 31,157.93 crore during 2023-24 which were not surrendered,” the report said.

The CAG flagged the issue, noting that overall expenditure remained about 20 per cent lower than the total Grants and Appropriations.

The report further highlighted that in 45 cases under 28 Grants, savings exceeding Rs 100 crore were observed without surrender, while 37 cases showed persistent high savings over three consecutive years from 2021-22 to 2023-24.

The CAG said that more than half of the allocated funds remained unspent in ten key departments. These include Tribal Affairs (Rs 455.44 crore, 80 per cent), Public Health Engineering (Rs 5,357.21 crore, 70 per cent), Industries and Commerce (Rs 739.98 crore, 68 per cent), Planning (Rs 618.30 crore, 67 per cent), Irrigation and Flood Control (Rs 1,303.86 crore, 64 per cent), Horticulture (Rs 428.94 crore, 58 per cent), Agriculture (Rs 1,762.02 crore, 54 per cent), Culture (Rs 183.18 crore, 68 per cent), Fisheries (Rs 133 crore, 50 per cent) and Information Department (Rs 126.19 crore, 57 per cent).

Highlighting serious procedural lapses, the CAG report pointed out that an amount of Rs 5,214.45 crore was incurred under 35 schemes and sub-heads in nine grants without budgetary provisions during 2023-24.

On the other hand, excess expenditure of Rs 19,610.17 crore was incurred between October 2019 and March 2024 without proper regularisation, including Rs 3,760.84 crore during 2023-24 alone, it added.

The CAG warned that such unregulated excesses undermine financial discipline and legislative control.

It further said that excess expenditure of Rs 3,760.84 crore was incurred under various sections, including Grant No. 08 (Finance Department) and Grant No. 36 (Co-operative Department), which “required regularisation”.

The report also pointed to poor planning in supplementary budgeting.

“Supplementary provisions aggregating to Rs 588.69 crore proved unnecessary as the expenditure did not come up to the level of the original provisions,” it said.

Conversely, “supplementary provisions of Rs 5,348.98 crore were not adequate and led to excess expenditure of Rs 3,471.06 crore.

The CAG noted that this indicated failure to utilise funds meant for developmental activities and asset creation. The CAG underscored widespread savings across departments, stating, “There were savings of Rs 10 crore and above in 36 Grants, including 30 Grants wherein savings of Rs 100 crore and above were noticed..

It added that “budgetary allocations were based on unrealistic proposals,” particularly in the Capital section, where 26 Grants recorded savings exceeding Rs 100 crore.

In a major concern, the report said, “The entire budget provision of Rs 10,597.90 crore under 31 Grants involving 160 schemes remained unutilised during the year,” resulting in denial of benefits to the public.

The audit also flagged a “rush of expenditure” at the end of the financial year.

“Expenditure exceeding 50 per cent of the total was incurred in March 2024 under 11 major heads across 10 grants,” it noted.

The Finance department, in its response, attributed the savings to lower-than-expected receipts under centrally sponsored schemes and reduced capital expenditure, stating that corrective measures would be taken.

Recommending corrective measures, the audit body urged the government to ensure realistic budgeting, strengthen financial monitoring, regularise excess expenditure, and improve accountability of controlling officers to prevent recurrence of such lapses.

“The government should make realistic budgetary provisions and ensure efficient control mechanisms to curtail savings and excess expenditure,” the CAG said.GAG emphasised that “excess expenditure over the approved Grants may be regularised at the earliest” to maintain financial discipline.

CAG pulls up budgetary violations Comptroller and Auditor General Jammu and Kashmir Budget Manual Rs 34K Cr funds not surrendered
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