₹3,243.46 crore shortfall in state transfers to local bodies, CAG finds

Who it concerns: Chhattisgarh State Government, specifically Panchayati Raj Institutions (Gram, Janpad, Zilla Panchayats) and Urban Local Bodies (Municipal Corporations, Municipal Councils, Nagar Panchayats).

What the auditor found

• CAG found that despite the launch of the e-Gram Swaraj portal in April 2020, Panchayati Raj Institutions continued to maintain accounts for their own revenue and state grants using manual systems; only Central Finance Commission grants were recorded online.
• CAG reported that 22 elected positions (3 Sarpanch and 19 Panch) in 21 sampled Gram Panchayats remained vacant for more than six months as of March 2024.
• CAG noted that no meetings of the District Planning Committee were held during the period 2018-23.
• CAG found that no revenue was transferred to Panchayati Raj Institutions against assigned taxes such as property tax, surcharge on property tax, and excise duty on local items.
• CAG stated that transfers from the state's own revenue sources to Panchayati Raj Institutions were ₹3,243.46 crore less than the amounts recommended by the State Finance Commission during 2018-23.
• CAG found that in 36 sampled Gram Panchayats, the required quorum was not met in Gram Sabha meetings, and no action was taken against responsible office holders.
• CAG reported that 872 out of 2,260 sanctioned posts (39%) in the Secretariat and Zilla/Janpad Panchayats were vacant, and there was a shortage of 1,278 staff at the Gram Panchayat level.
• CAG found that delays in processing applications at the Business Complex in Rajnandgaon Municipal Corporation resulted in a loss of ₹39.11 lakh in potential revenue.
• CAG reported that Janjgir-Champa and Akaltara Municipal Councils failed to recover ₹5.18 crore in contractual penalty amounts from contractors for delayed and incomplete water supply infrastructure projects.

Also in the document

• CAG highlighted a significant financial gap where transfers from state revenue sources to local bodies were ₹3,243.46 crore lower than the State Finance Commission's recommendations for 2018-23.
• CAG noted a systemic failure in staffing, with 61% of sanctioned posts vacant at the Zilla/Janpad Panchayat level and a shortage of over 1,200 staff at the Gram Panchayat level.
• CAG identified that assigned revenue sources like property tax and excise duty were not being transferred to Panchayati Raj Institutions, limiting their financial autonomy.