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Financial
Karnataka

Report of 2007 - Financial Audit on Panchayati Raj Institutions, Government of Karnataka

Date on which Report Tabled:
Date of sending the report to Government
Government Type
Local Bodies
Local Body Types
Panchayat Raj Institutions
Sector -

Overview

The Report contains two chapters. The first chapter contains observations of Audit on the accounts and finances of the Zilla Panchayats and Taluk Panchayats and the other chapter contains three performance audit reviews and 13 paragraphs based on the audit of financial transactions of the Zilla Panchayats and Taluk Panchayats. A synopsis of the findings contained in the performance reviews and paragraphs is presented in this overview.

During 2004-07, the allocation to Panchayat Raj Institutions formed 14 to 16 per cent of the total budget of the State.Despite being pointed out in earlier Audit Reports, delays persisted in forwarding the annual accounts of the Zilla Panchayats to the Principal Accountant General for audit.While total receipts and expenditure in Panchayat Raj Institutions increased steadily during 2004-07, the capital expenditure declined sharply during 2006-07 compared to 2005-06.Abnormal delays were noticed in release of Twelfth Finance Commission grants to Panchayat Raj Institutions. Interest payment was irregularly charged to 'Plan' Head of Account denying funds for envisaged rural developmental activities.

The devolution of funds and functions to Panchayat Raj Institutions was not as envisaged in the Constitution.Contrary to the spirit of devolution of funds to Panchayati Raj Institutions,funds for procurement and supply of medicine for health centers/institutions were allotted to Government Medical Stores.Drawing and Disbursing Officers of 14 Zilla Panchayats failed to submit the detailed accounts for Rs.4.64 crore drawn on Abstract Contingent bills.In 26 Zilla Panchayats, as many as 397 cases of misappropriation /defalcation involving Rs.24.47 crore were pending at various stages.To develop vibrant village communities by adopting an intensive and integrated approach to rural development, the State Government launched the Suvarna Gramodaya Yojana in October 2006. The implementation of the Scheme suffered due to laxity of the State Government in preparatory procedures and inadequacies in convergence with other ongoing schemes.There was delay in approval of action plans, diversion of funds, nonprioritisation of developmental works, absence of monitoring mechanism, etc.

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