Bihar's financial sector in turmoil, Rs 71K cr untracked: CAG

The State Finances Audit Report for Bihar 2023-24, prepared by the Comptroller and Auditor General of India (CAG), has unveiled a deeply troubling picture of financial mismanagement, exposing systemic lapses that threaten transparency and accountability.

- ABHINANDAN MISHRA

With Rs 70,877.61 crore in unverified funds and a litany of procedural failures, the report warns of a fiscal environment ripe for embezzlement and corruption, casting a shadow over the state's governance of public resources.

At the core of the report is the staggering backlog of 49,649 Utilisation Certificates (UCs) worth Rs 70,877.61 crore, outstanding as of March 31, 2024. "Despite the requirement of submitting Utilisation Certificates (UCs) within a stipulated time period, 49,649 outstanding UCs of Rs 70,877.61 crore were not received by the Accountant General (Accounts & Entitlements), Bihar, as on 31 March 2024," the report states.

These certificates are essential to confirm that funds allocated for specific projects—such as schools, hospitals, or rural infrastructure—were spent as intended. Their absence leaves a gaping void in accountability, with no assurance that these billions served their purpose or were diverted through fraud or negligence.

"In the absence of UCs, there is no assurance that funds disbursed have been used for the intended purpose. Moreover, high pendency of UCs is fraught with the risk of embezzlement, misappropriation, and diversion of funds," the CAG warns, highlighting the potential for systemic corruption.