Shimla: The Comptroller and Auditor General (CAG) of India has flagged serious financial irregularities in Himachal Pradesh, revealing that the state government spent ₹94.35 crore without budgetary approval in the financial year 2023-24. The report, tabled in the assembly by Chief Minister Sukhvinder Singh Sukhu, highlights violations of the Himachal Pradesh Budget Manual and raises concerns over accountability in state finances.
According to the report, the unapproved expenditure was incurred under four grant demands—16, 18, 28, and 32—without provisions in the original budget or supplementary allocations. Of the total amount, ₹66.50 crore was spent under three major demands:
- Demand No. 16: Forest and Wildlife Department
- Demand No. 18: Industry, Minerals, IT, and Supply
- Demand No. 32: Scheduled Caste Development Program
Demand No. 28, which pertains to urban development, village and town planning, and housing, was also flagged in the report. The CAG noted that in March last year alone, over ₹55.52 lakh was re-appropriated without proper budgetary procedures.
No Utilization Certificates for ₹1,744.60 Crore
The report also pointed out that a significant portion of government spending lacked transparency, as 1,342 Utilization Certificates (UCs) amounting to ₹1,744.60 crore were not submitted by various government bodies and authorities. This raises serious questions about whether the allocated funds were used for their intended purposes.
Despite these financial lapses, the CAG report highlighted an increase in Himachal Pradesh’s revenue receipts by ₹1,083.55 crore in 2023-24 compared to the previous year. Revenue receipts stood at ₹39,173.05 crore, while revenue expenditure was ₹44,731.63 crore, and capital expenditure reached ₹5,629.79 crore.
Increase in GST Collections
The state’s Goods and Services Tax (GST) collection saw a marginal rise of ₹80.68 crore (1.53%) during 2023-24. This included an advance allocation adjustment of ₹61.20 crore under Integrated GST (IGST). Himachal Pradesh also received ₹2,845.13 crore as its share of net income under Central GST, along with ₹88 crore as non-debt compensation for revenue loss due to GST implementation.
