Is Bihar Government Involved in a Rs 70,000 Crore Scam?
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Synopsis
The Bihar government firmly rejects allegations of a Rs 70,000 crore scam related to Utilisation Certificates, clarifying that the pending submissions are part of standard accounting practices. As political tensions rise, the focus may shift towards procedural reforms rather than corruption.
Key Takeaways
- The Bihar government denies scam allegations regarding UCs.
- Pending UCs are described as normal accounting processes.
- The Public Accounts Committee will review the CAG report.
- Significant amounts of UCs have been cleared recently.
- This year sees the lowest backlog of UCs in five years.
Patna, July 29 (NationPress) Under increasing scrutiny from opposition parties regarding alleged financial discrepancies highlighted in the CAG report, the Bihar government, led by Nitish Kumar, has issued a formal statement rejecting claims of any scam related to the non-submission of Utilisation Certificates (UCs) totaling Rs 70,877 crore.
The administration characterized the situation as a standard accounting procedure rather than evidence of financial misconduct.
During the recent monsoon session of the Bihar Assembly, Deputy Chief Minister Samrat Choudhary presented the Comptroller and Auditor General (CAG) report for the fiscal year 2023-24.
The report raised red flags regarding the delays in submitting utilisation certificates for funds allocated under various government initiatives.
The CAG noted that without timely UCs, it is uncertain whether the funds were utilized for their designated purposes, prompting the opposition to allege a Rs 70,877 crore scam.
In a press briefing on Tuesday, Principal Secretary of the Finance Department Anand Kishore firmly refuted any claims of financial irregularities.
He remarked, “This is neither embezzlement nor a scam. The pending UCs are simply part of a normal accounting process practiced by all states. This does not indicate fund misappropriation.”
Kishore also indicated that the Public Accounts Committee (PAC) of the Bihar Legislature would now assess the report.
The relevant departments, including the Finance Department, will have the opportunity to clarify the pending certificates, after which the final report will be submitted to the government.
To support the government’s position, Kishore disclosed, “In FY 2022-23, UCs amounting to Rs 1,09,093 crore were successfully reconciled. Following the issuance of the CAG report, an additional Rs 51,750 crore worth of UCs have been resolved.”
He also noted that this year marks the lowest backlog of UCs in the past five years, reflecting improvements in financial oversight and compliance.
While the opposition has leveraged the CAG findings to challenge the credibility of the ruling JD(U)-BJP coalition, the government's clarification might pivot the discussion toward procedural reforms rather than instances of corruption.
However, as the matter progresses to the PAC, political tensions surrounding transparency and accountability in public expenditures are likely to persist.
Point of View
The denial of a scam by the Bihar government amidst opposition theatrics highlights the ongoing challenges of transparency in public finance. This situation underscores the need for accountability and reform in financial practices, ensuring that taxpayer money is used effectively and efficiently.
NationPress
30/07/2025
Frequently Asked Questions
What is the Rs 70,000 crore scam allegation?
The allegation pertains to the non-submission of Utilisation Certificates (UCs) totaling Rs 70,877 crore, leading to claims of potential financial misconduct.
How did the Bihar government respond to the allegations?
The Bihar government has categorically denied any wrongdoing, stating that the pending UCs are part of a normal accounting process followed by all states.
What actions will the Public Accounts Committee take?
The PAC will review the CAG report and provide relevant departments with the opportunity to explain the pending Utilisation Certificates.
What data did the government provide to support its stance?
Principal Secretary Anand Kishore noted that in FY 2022-23, UCs worth Rs 1,09,093 crore were adjusted, and an additional Rs 51,750 crore have been cleared following the report.
What impact could this situation have on the political landscape?
This unfolding situation may shift the focus from allegations of corruption to the need for procedural reforms in financial management within the state.
