RDD Fails To Execute 557 Developmental Works | Rs 12.51 cr remain unutilized in bank accounts for 3 years: CAG

Reflecting the poor performance, the Rural Development Department (RDD) failed to complete the execution work on developmental works on time that were sanctioned under the 14th Finance Commission (FC).

Besides the delayed and non-execution of works, the RDD also kept Rs 12.51 crore unutilized in bank accounts.

The revelation came to fore in the latest report of Comptroller Auditor General (CAG) of India which was recently presented in the Parliament.

The CAG report said the funds were credited to the Bank Accounts of the Panchayats in two installments from February 2016 and February 2017 for execution of development works.

“The Block Development Officers (BDOs) were required to prepare a works plan as per the funds provided under the scheme,” it said.

The CAG has however pulled the RDD over the mismanagement of works and utilization of funds approved for the developmental works.

The CAG said the audit scrutiny of the records of RDD from February 2019 to February 2020 revealed that the estimated cost of planned works in the works plan was 20 percent less than the funds allocated for the year 2015-16 in 15 Block Development Officers (BDOs).

“Preparation and submission of works plan for an amount less than the funds allocated resulted in non-utilisation of Rs 5.07 crore and were lying in the Bank,” the CAG said.

The CAG said the audit done in February 2019 also revealed that only 1,902 out of 2,459 works planned in 34 sampled RDD Blocks were completed up to March 2019.

“Delay and non-execution of around 557 works resulted in non-utilisation of Rs 12.51 crore which was meant to be spent on the developmental works. The amount was unutilized in the Bank accounts for more than three years,” the CAG said.

The CAG has asked the RDD to initiate immediate action to identify whether these balances, related to the releases of FC, have been correctly depicted in the Utilization Certificates furnished to the Government of India (GoI)

“Department should refund the outstanding balances immediately to the GoI, if not already deducted from the releases of the following year,” the CAG said.

The CAG has also expressed displeasure over the mismanagement of funds of various DDOs in utilization of funds released under PMDP by GoI.

“The overstatement of expenditure of Rs 2.48 crore was noticed in utilisation certificate furnished by the DDOs in respect of PMDP,” the CAG said.

It said the audit scrutinised the transaction of three DDOs to whom funds were released by GoI wherein it was found that the expenditure figures in the UCs furnished by these DDOs were in excess of actual expenditure incurred as per records made available.