Kashmir Impulse Desk

Jammu, April 13 

Federal auditor has flagged significant non-compliance with financial rules by the Jammu and Kashmir administration, citing thousands of pending advance bills and delays in accounting that have affected transparency and oversight.

In a report on the Union Territory’s finances for the year ended March 2023, the Comptroller and Auditor General (CAG) said 3466 Abstract Contingency (AC) bills worth Rs 197.75 billion remained unsettled as of March 31, 2023, due to non-submission of corresponding Detailed Countersigned Contingent (DCC) bills.

Under financial rules, funds drawn through AC bills for contingent expenditure must be regularised within two months through DCC bills supported by vouchers.

The audit noted that 1877 of the pending bills, amounting to Rs 55.83 billion, dated back to the period before the reorganisation of the former state of Jammu and Kashmir in October 2019.

The remaining 1589 unsettled bills, totalling Rs 141.92 billion, accumulated after the region became a Union Territory, with the number of new advances outpacing settlements in recent years.

The CAG said the administration had not revised codal provisions governing the drawal and settlement of such bills, contributing to weak financial controls.

“The increase in unadjusted AC bills indicates deficiencies in monitoring and compliance,” the report said. “The pending liabilities had implications for accountability and the quality of financial reporting.”

More than 82 percent of outstanding DCC bills were concentrated in seven departments, including rural development, public works, housing and urban development, education and health, according to the audit.

The report also highlighted signs of weak budgetary control, noting that 384 AC bills worth Rs 33.11 billion were drawn in 2022-23, with over one-fifth of the amount withdrawn in March, typically the last month of the fiscal year.

Such end-of-year spending patterns suggested that funds were drawn to exhaust budget allocations, the auditor said.

A detailed audit of selected departments found additional pending DCC bills worth about 249.8 million rupees in areas such as youth services, technical education and libraries.

The report also flagged delays in submission of utilisation certificates and non-compliance with government accounting standards, including Indian Government Accounting Standards (IGAS-2 and IGAS-3), which it said had adversely affected the quality of accounts.

In response, the Finance Department said it had directed departments to ensure time-bound submission of pending bills and expedite compliance with accounting requirements.

The CAG said adherence to financial rules was essential to ensure transparency, accountability and effective public expenditure management.