Millennium Post

Interest on refunds without House nod: CAG pulls up FinMin

Apex auditor CAG on Friday pulled up Finance Ministry for allowing income tax department to incur over Rs 7,700 crore on interest on refunds without authorisation of Parliament during 2015-16.

The Constitution of India provides that no money should be withdrawn from the Consolidated Fund of India except under appropriation made by law.

"An expenditure on interest on refunds amounting to Rs 7,704 crore was incurred by the Central Board of Direct Taxes, without the authorisation of Parliament during the year 2015-16," said the Comptroller and Auditor General of India (CAG) in a report tabled in Parliament. A total expenditure of Rs 55,939 crore on interest payments had been incurred over the last eight years without obtaining approval of Parliament through necessary appropriations despite the recommendations of the Public Accounts Committee, it added.

The Union Government's Finance and Appropriation Accounts for 2015-16 along with the Audit report of the CAG were presented in Parliament.


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