Audit Reports
Pondicherry
Report of 2011 - Compliance and Financial Audit on Union Territory Finance of Government of Pondicherry
Overview
The Twelfth Finance Commission recommendations were not applicable to the Union Territory (UT) of Puducherry. Consequently, no Fiscal Responsibility and Budget Management (FRBM) Act was enacted by the UT Government of Puducherry. However, a road map has been prepared based on the principles of FRBM Act, which is pending for approval by the Government of India. Based on the audited accounts of the Government of Union Territory of Puducherry for the year ending March 2011, this Report provides an analytical review of the Annual Accounts of the Union Territory Government. The Report is structured in three chapters.
Chapter I is based on the audit of Finance Accounts and makes an assessment of the Government's fiscal position as at 31 March 2011. It provides an insight into trends in committed expenditure and borrowing pattern, besides giving a brief account of Central funds transferred directly to State implementing agencies through the off-budget route. Chapter II is based on audit of Appropriation Accounts and gives a grant-wise description of appropriations and the manner in which the allocated resources were managed by the service delivery departments. Chapter III is an inventory of the Government's compliance with various reporting requirements and financial rules. The Report also has additional data collated from several sources in support of the findings.
Inadequate mobilization of revenue receipts: During the year 2010-11, revenue receipts grew by 13 per cent whereas revenue expenditure grew by 15 per cent. This indicates that revenue receipts are not enough to meet revenue expenditure. Funds transferred directly to implementing agencies: During 2010-11, GOI directly transferred RS 60.46 crore to Union Territory implementing agencies for implementation of various schemes/programmes. As these funds were not routed through the UT budget, the Annual Finance Accounts had not captured the flow of these funds and to that extent, the receipts and expenditure of the UT as well as other fiscal variables/parameters derived from them were underestimated. Arrears of revenue: Arrears of revenue pending for collection increased from RS 342.06 crore in 2009-10 to RS 425.03 crore in 2010-11 (24.26per cent) which constituted 23.39 per cent of the UT's own revenue and was more than the revenue deficit for the year by RS 84.93 crore.