By Our Reporter
SHILLONG, Feb 24: Voice of the People Party chief and Nongkrem MLA Ardent M. Basaiawmoit on Tuesday delivered a sharp critique of the state’s fiscal management, audit findings and infrastructure execution during the discussion on the Budget in the Assembly.
While acknowledging the presentation of the financial statement by Chief Minister Conrad K. Sangma, he cautioned that impressive budget speeches carry little weight unless ordinary citizens actually experience tangible benefits on the ground.
He argued that simply increasing expenditure is not enough to prove a healthy economy; what truly matters is how effectively policies and programmes deliver real outcomes.
Drawing heavily from the Comptroller and Auditor General’s State Finance Report for 2023–24, Basaiawmoit outlined several worrying fiscal red flags.
He noted that outstanding government guarantees had reached Rs 2,908.20 crore by the end of the year, even after fresh guarantees and withdrawals amounting to Rs 69.35 crore, leaving the state exposed to heavy liability should the guaranteed entities default. State debt had climbed by 16.87%, pushing the debt-to-GSDP ratio sharply higher from 33.17% to 40.56%. He also drew attention to the burden of high committed expenditures—salaries, pensions, interest payments, subsidies and transfers—which severely limit fiscal manoeuvrability.
Citing audit findings, Basaiawmoit said there were instances of expenditure without proper legislative approval and that Rs 3,819.91 crore was incurred without requisite approval under two grants and one non-grant.
He noted that actual expenditure during 2023–24 stood at Rs 25,976 crore, lower than the approved budget, and referred to savings of Rs 4,612 crore and excess expenditure of Rs 3,822.20 crore across various heads. He added that a substantial amount of provisions, including Rs 3,786.80 crore, was surrendered at the end of the financial year, while other amounts remained unadjusted.
He also highlighted the transfer of Rs 2,512.48 crore to bank accounts of 480 Drawing and Disbursing Officers, stating that of this amount, Rs 260.91 crore was utilised while Rs 563.65 crore remained unutilised as of March 31, 2024, with some accounts reportedly holding balances as high as Rs 226 crore.
He argued that although these transfers were reflected as expenditure in government accounts, the funds were in reality lying idle in bank accounts, making them book entries rather than actual development spending.
He criticised the widespread use of vague “Other Expenditure” classifications that obscure transparency, the improper handling of Personal Deposit accounts, and the state’s repeated recourse to overdraft on 26 occasions after breaching Reserve Bank of India limits—clear signs of persistent cash-flow strain.
Although capital expenditure had risen, which he acknowledged as generally positive for development, Basaiawmoit questioned its real value by again citing defects in major projects such as structural issues at the ISBT dome, visible cracks, and roads whose blacktop could be lifted by hand. He concluded by pressing the government to respond directly to the CAG’s observations, tighten financial controls, enforce strict discipline, and ensure that every rupee spent creates lasting, high-quality assets for the people of Meghalaya.
