CAG finds 69% of Assam local bodies' funds from central schemes, own revenue at 3%

This audit examined the financial management, functioning, and compliance of Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) in Assam for the period ended March 2024. It covers findings from 207 PRIs and 21 ULBs audited between 2021 and 2024.

Government of Assam, specifically Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), including Municipal Corporations and the Social Audit Unit.

• ₹98 lakh in funds blocked due to unfinished or defunct projects (multi-purpose hall in Morigaon, paver block factory in Hapjan).
• ₹32.56 lakh spent by two Tinsukia Gaon Panchayats on assets built on private land.
• ₹18 lakh spent on a defunct RO-based packaged drinking water plant in Hapjan that has been non-functional for five years.
• ₹10.36 lakh paid for suspicious interior decoration work in Tinsukia.
• Social Audit Unit (SAU) has a 43% overall vacancy rate and a less than 4% recovery rate of misappropriated funds.
• Revenue gap funds intended for asset creation were improperly used for salary payments.
• 51-63% shortfall in audit backlogs for the Director of Audit, Local Fund (DALF).
• Recommendations include ensuring regular SAU Governing Body meetings, finalizing manpower policies, and issuing formal notifications for statutory devolution of functions, funds, and functionaries to ULBs.

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