CAG finds 39 unresolved adverse balances in Union Government accounts

It assessed the accuracy of financial reporting, the management of funds, and the utilization of appropriations approved by Parliament.

Who it concerns: Union Government of India (Ministry of Finance)

What the auditor found

• Short transfer of ₹9,222 crore to four designated Reserve Funds.
• ₹10,380.36 crore pending disbursement to States/UTs for compensatory afforestation.
• ₹2,192.95 crore remained in bank accounts instead of being transferred to the Public Account of India.
• ₹44,714.77 crore adverse balance under Ministry of External Affairs due to incorrect transfer entry.
• ₹3,042.32 crore pension payment e-scrolls booked to suspense head instead of final head due to shortage of funds.
• ₹91,534 crore arrears in recovery of loans and advances from State/UT Governments and other entities.
• ₹12,754.47 crore in misclassification of accounting (₹4,011.91 crore receipts, ₹8,742.56 crore expenditure).
• ₹54,282.32 crore in outstanding Unliquidated Credits (UCs) as on 31st March 2025, with the earliest dating back to FY 1985-86.
• ₹4,91,302.81 crore overall savings against approved appropriations of ₹1,47,54,642.48 crore.
• ₹844.93 crore accumulated net credit balance in dormant Reserve Funds and Deposits.

Also in the document

• CAG noted that 39 cases of adverse balances in various Fund/Deposit heads remained unresolved for over five years.
• CAG found that more than 50 per cent of expenditure (₹4,957.58 crore) and receipts (₹4,087.43 crore) were booked under omnibus heads ('Other Expenditure' and 'Other Receipts'), affecting transparency.
• CAG observed that re-appropriations exceeding ₹10 crore were made to 18 minor/sub-heads where the original sanctioned provisions were already adequate, rendering the re-appropriations unnecessary.
• CAG reported a difference of ₹179.06 crore between Statement 10 and 11 of the Union Government Finance Accounts regarding investments in International Financial Institutions.