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Compliance Performance
Madhya Pradesh

Report No 2 of 2017 - Madhya Pradesh Economic Sector

Date on which Report Tabled:
Fri 24 Mar, 2017
Date of sending the report to Government
Government Type
State
Sector Finance

Overview

The Report of the Comptroller and Auditor General of India on Economic Sector for the year ended 31 March 2016 of Government of Madhya Pradesh, contains three chapters in which significant results of the performances/compliance audits of the Departments of the Government of Madhya Pradesh under Economic Sector including Departments of

Co-operation, Farmer Welfare and Agriculture Development, Forest, Narmada Valley Development, Public Works and Water Resources.

Chapter-I of this Report narrates the budget profile of the State, planning and conduct of audit, responses of the departments to the audit and follow up of Audit Reports.

Chapter-II includes two Performance Audits.

Performance Audit on Implementation of National Food Security Mission revealed that NFSM districts could increase the sown area of rice by five per cent only as against the average growth rate of 26 per cent in sown area of rice at State level. NFSM-Wheat districts also did not achieve sustained growth, as the sown areas decreased in 2014-15 as compared to previous year. Production of pulses substantially decreased by 22 per cent in 2013-14 and by 14 per cent in 2014-15 as compared to 2012-13. Utilisation of funds received under NFSM by the Department decreased from 95 per cent in 2012-13 to 64 per cent in 2015-16. There was irregular expenditure of Rs. 261.81 crore on assistance to farmers on purchase of farm implements.

Performance Audit on Implementation of Madhya Pradesh Water Sector Restructuring Project revealed that agriculture intensification and diversification did not correspond to the achievement of irrigated area under MPWSRP. Works of field channels, water courses and farm turnouts were not executed in Chambal Canal System and Rs. 205.52 crore earmarked for micro distribution network and canal automation were diverted for other purposes. Unjustified expenditure of Rs. 263.85 crore was incurred on execution of excess quantities and length of CC lining of canals beyond the scope of SMP. Adherence with agreement clauses was inadequate leading undue financial benefit of Rs. 68.74 crore.

Chapter-III includes two compliance audits and 16 Audit Paragraphs.

Compliance Audit on preparation of estimates of road works revealed that for preparation of estimates of road works, feasibility study and detailed survey and investigation were not carried out. Road works were awarded without ensuring adequate provision in the estimates for acquisition of forest and private lands resulting in delays from two months to over six years. Department erroneously adopted richer specifications resulting in extra cost of

Rs. 21.30 crore. Provisions of cross drainage (96 estimates) and length of road (30 estimates) were made without survey and investigation resulting in wide deviation in 94 estimates and excess expenditure of Rs. 32.56 crore.

Compliance Audit on Crop Insurance Scheme revealed that the coverage of farmers under NAIS during Rabi 2010-11 to Kharif 2015 ranged between 14.58 per cent and 33.80 per cent. The increase of coverage was only due to compulsory insurance of loanee farmers, as only 2,841 non-loanee farmers were covered. In absence of crop cutting experiments, AIC could not calculate the insurance claim of farmers in 6,702 Patwari Halkas. Actuarial regime was not implemented even after five years of introduction of NAIS in the State resulting in extra financial burden of Rs. 692.92 crore to Government. Financial institutions did not adhere to the limits specified for providing finances to the farmers, insurance claim was increased by Rs. 101.07 crore resulting in extra financial burden to the Government.

Compliance Audit Paragraphs includes 16 audit paragraphs on several deficiencies, comprising of one case of Co-operation Department (Rs. 1.30 crore), two cases of Forest Department (Rs. 6.52 crore), four cases of Narmada Valley Development Department (Rs. 40.09 crore), two cases of Public Works Department (Rs. 5.74) and seven cases of Water Resources Department (Rs. 38.79 crore).

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