CAG slams financing, Kejriwal cries foul

The CAG has pulled up the Delhi government for its over-budgeted estimates in 2015-16 and disproportionately higher expenditure in the last quarter of the year, calling it "a breach of financial propriety".

The Comptroller and Auditor General (CAG) made the remarks in its report on state finances for the fiscal 2015-16, tabled in the Assembly on Friday.

Chief Minister Arvind Kejriwal called the report politically-motivated and accused the auditor of targeting only the Aam Aadmi Party (AAP) government.

"(The) CAG is indulging in politics. I would be happy if it points out flaws in our work and we will correct them. But it is not right if it only audits our finances but not of the other states," Kejriwal said.

In its report, the auditor recommended to the city government to devise a suitable mechanism to "avoid rush of expenditure in the last quarter and the last month of the financial year".

It also asked the government to improve its budgeting process and ensure more realistic Budget estimates.

"Against a total provision of Rs 42,809.39 crore during 2015-16, an expenditure of Rs 35,434.86 crore was incurred, which resulted in savings of Rs 7,374.53 crore (17.23 percent)," the report said.

Such large-scale savings indicate that estimates were not prepared after adequate scrutiny of the projects and schemes, it stressed.

On rush of expenditure during the last quarter of the fiscal, the CAG report pointed out that the expenditure incurred by various departments in March 2016 and the last quarter of 2015-16 ranged between 51.27 percent and 100 per cent of the total expenditure.