By Our Reporter
SHILLONG, Dec 24: The report of the Comptroller and Auditor General of India (CAG) for the year ended March 31, 2018, revealed that the revenue receipts of the Khasi Hills Autonomous District Council (KHADC) decreased by 26% from Rs 171.66 crore in 2016-17 to Rs 127.85 crore during 2017-18.
The CAG report tabled in the just-concluded winter session of the council said the fall in revenue receipts during 2017-18 was primarily due to a 74% (Rs 93.41 crore) decrease in grants-in-aid from Rs 125.82 crore in 2016-17 to Rs 32.41 crore in 2017-18.
The report stated that during 2017-18, the share of grants-in-aid (Rs 32.41 crore), royalty on Mines and Minerals (Rs 71.84 crore), and share of taxes on vehicles (Rs 6.71 crore) constituted 87% of the total revenue receipts (Rs 127.85 crore) of the KHADC. It indicated a high dependence of KHADC on revenue from the share of royalty/taxes and grants-in-aid from the government.
The CAG report further observed that against revenue expenditure of Rs 45.95 crore, Secretariat General Services, Public Works, and Forest together accounted for 64% leaving marginal expenses for other important heads such as Land Revenue, Education, Arts and Culture, and Public Health, Sanitation and Water Supply.
Against the budget estimate (BE) of Rs 201.59 crore in 2017-18, the CAG report stated that the KHADC incurred an actual expenditure of Rs 96.42 crore. Substantial variation between the BE and actuals was noted; It was 37% in receipts and 52% in expenditure concerning the BEs of the council during 2017-18.
The increase in the collection of revenue from mines and minerals by the KHADC in the form of royalty from Rs 12.23 crore (2016-17) to Rs 71.84 crore (2017-18) was due to the receipt of its share of royalty amounting to Rs 33.13 crore for the previous fiscal (2016-17) during 2017-18, while the decrease in receipt of revenue from taxes on vehicles was due to non-receipt of its share for the current year.
“During 2017-18, grant-in-aid from the government of India decreased by Rs 91.20 crore (74%) from Rs 123.45 crore in 2016-17 to Rs 32.25 crore in 2017-18, due to less receipt of grants under excluded areas/Part-IX and IX A of the Constitution of India.
The CAG report stated that there was an increase in expenditure under Social Security and Welfare during 2017-18. It was mainly due to the expenditure incurred on the implementation of various schemes from the fund received under the Special Assistance of Central Plan during 2016-17. Meanwhile, the audit noticed a difference of Rs 61,000 between the closing balance as of March 31, 2017, with that of the opening balance as of April 1, 2017, which needs reconciliation as this would have a cascading effect on the balances of the succeeding years.
The total receipts of the council decreased by Rs 41.94 crore (24%) from Rs 172.99 crore in 2016-17 to Rs 131.06 crore in 2017-18. The decrease was mainly due to a dip in receipts under grants-in-aid from the Centre by Rs 91.20 crore.
The shortfall between the BE and actual revenue collection for 2017-18, as discussed above, indicated that the KHADC was not able to make its revenue collection mechanism effective to the extent of the projections made under the BE.
However, the audit observed that the council utilised only 33% of total available funds (Rs 291.87 crore) during 2017-18, out of which 16% was spent on revenue expenditure (Rs 245.95 crore) and 17% on capital projects (Rs 50.37 crore) of the council.
The Secretary to the Executive Council, KHADC stated (August 2022/October 2023) that steps are being taken to improve the budgetary estimation to present a more accurate budget. Recommending planning to utilise available funds adequately, the CAG advised the council to undertake a detailed fiscal analysis and review to identify untapped eligible revenue resources and estimate revenue receipts more accurately.
It further said the council may take steps to increase its revenue receipts so that it can improve spending on its programmes and schemes.