The Comptroller and Auditor General of India (CAG) has laid bare a troubling picture of financial management and governance in Himachal Pradesh. The latest state audit report, tabled in the Legislative Assembly, uncovers widespread rule breaches, weak internal controls, and significant financial irregularities amounting to thousands of crores of rupees across several key departments.
Major Financial Irregularities and Lapses
The audit scrutinized the state's finances for the year ending March 31, 2023. It flagged a staggering ₹9,746.07 crore in outstanding government loans and advances. A substantial portion of this, ₹8,265.80 crore, was categorized under 'Other Advances', raising serious concerns about recovery and financial discipline.
One of the most critical findings was the failure to transfer ₹4,417.49 crore to the Consolidated Fund of the State. This massive sum, collected by various departments as revenue, was instead retained outside the state treasury. This practice violates fundamental financial rules and undermines budgetary control and transparency.
Specific Departmental Failures and Rule Breaches
The report pinpointed failures in several high-stakes departments. The Himachal Pradesh State Electricity Board Ltd (HPSEBL) was criticized for its poor fiscal health. Despite receiving hefty government subsidies, the board continued to incur heavy losses. The CAG noted that the state government's guarantee of ₹1,200 crore for the board's loans was a significant risk to public finances.
In the excise department, a major lapse allowed a firm to avoid paying ₹5.92 crore in license fees. The department renewed a liquor license for a company in Solan without recovering the outstanding fee from the previous year, causing a substantial loss to the state exchequer.
The audit also revealed serious issues in forest resource management. The government extended a timber supply agreement with a private party in 2021 without calling for fresh tenders. This extension, granted for two years, resulted in a potential financial loss of ₹4.80 crore to the state, as market rates for timber had increased significantly.
Weak Internal Controls and Systemic Issues
Beyond specific irregularities, the CAG report highlighted systemic weaknesses in the state's financial administration. The internal control systems were found to be inadequate, failing to prevent or detect these lapses. The practice of parking large amounts of revenue outside the Consolidated Fund points to a lack of stringent financial oversight.
The report also criticized delays in the submission of accounts by various departments and public sector undertakings, which hampers timely audit and accountability. The accumulation of huge outstanding advances suggests a culture of financial indiscipline and poor recovery mechanisms.
Implications and Call for Action
The CAG's findings have serious implications for Himachal Pradesh's fiscal health and governance standards. The irregularities indicate a failure in adhering to the Himachal Pradesh Financial Rules and other statutory provisions. The report serves as a stark reminder of the need for robust financial management systems.
The audit authority has recommended urgent corrective measures. These include ensuring all revenue collections are promptly deposited into the Consolidated Fund, strengthening internal audit mechanisms, and taking strict action for the recovery of outstanding loans and advances. The state government is expected to act on these observations and provide action-taken reports to the Public Accounts Committee of the legislature.
This comprehensive audit report underscores the critical need for transparency, accountability, and stricter adherence to financial rules in the administration of Himachal Pradesh to safeguard public money.
