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

Who it concerns: Government of Kerala

What the auditor found

• 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.

Also in the document

• CAG identified off-budget borrowings through State-owned PSUs/Authorities and variations in the disclosure of borrowing details to the Government of India.
• CAG noted undischarged interest liabilities and short contributions in the National Pension System.
• CAG reported on the non-transfer of cess to the Kerala Road Safety Fund and pendency of refund cases.
• CAG observed delays in the submission of Utilisation Certificates (UCs) and the presence of unadjusted temporary advances.
• CAG highlighted irregular resumption of funds from Treasury Savings Bank Accounts and issues with the operation of Minor Head - 800.