A report by the Comptroller and Auditor General (CAG) has revealed serious financial irregularities in Assam’s Zilla Parishads (ZPs), highlighting that funds were released and utilized without mandatory budget approvals from 2018 to 2023. The report, which was tabled in the Assam Assembly, stated that during this period, none of the ZPs had their annual budgets approved, despite receiving and spending government funds. The findings point to significant lapses in financial discipline and governance in the state’s Panchayati Raj Institutions (PRIs).According to the report, only 7 to 50 percent of ZPs submitted their budgets to the Commissionerate of Panchayat and Rural Development (P&RD). However, none of these budgets received government approval due to procedural deficiencies. The rules clearly state that no expenditure can be incurred without budget approval, yet funds continued to be disbursed and spent.
“The lack of budget approval and continued fund allocation indicate that financial discipline in the PRI system is yet to be firmly established,” the report observed. The report also pointed out that the devolution of funds, functions, and functionaries to PRIs in Assam remains incomplete. While activity mapping for 23 out of 29 subjects was conducted, only seven subjects were devolved to PRIs. No actual transfer of functions had taken place as of October 2023, highlighting administrative gaps in local governance. Further, the CAG found 456 outstanding utilization certificates (UCs) amounting to ₹3,971.52 crore for grants disbursed between 2001-02 and 2021-22. In the absence of these UCs, it remains unclear whether the grants were used for their intended purposes.
The report also noted that 1,684 audit paragraphs, with a total financial implication of ₹1,660.80 crore, were pending settlement as of March 2023 due to a lack of compliance or responses from authorities. Adding to the financial concerns, the report highlighted that PRIs’ own revenue sources have shown a declining trend over the last five years. This suggests that local bodies are not taking enough initiatives to boost their revenues and are instead becoming increasingly dependent on government grants. Additionally, the CAG pointed out that the eGramSwaraj system, which is meant to generate reports on asset creation, was not being used effectively. The absence of asset registers has left PRI assets unmonitored, raising concerns about possible misutilization or mismanagement.