CAG finds off-budget borrowings by Kerala PSUs and undisclosed liabilities

This audit examines the financial performance, budgetary management, and financial reporting practices of the Government of Kerala for the financial year 2024-25.

Government of Kerala

• The report covers three main areas: an overview of state finances (including debt and deficits), budgetary management (including deviations from constitutional provisions), and financial reporting practices (including compliance with accounting standards).
• The audit identifies specific issues such as off-budget borrowings through State-owned PSUs, undischarged liabilities, short contributions to the National Pension System, and non-transfer of cess to the Kerala Road Safety Fund.
• The report notes variations between budget projections and actuals, excess expenditure, and unspent amounts in various schemes, including the 'Total Housing scheme Urban (LIFE Parppida Mission)'.
• The audit highlights delays in submitting Utilisation Certificates, unadjusted temporary advances, and irregular resumption of funds from Treasury Savings Bank Accounts.
• The report includes recommendations for improving state revenues and addressing expenditure-side issues to ensure fiscal stability.

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