What Did the CAG Report Reveal About Financial Irregularities in Odisha's Welfare Programs?
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Synopsis
The recent CAG report highlights alarming financial discrepancies in Odisha's welfare initiatives, raising concerns about misappropriation and ineffective fund usage. With significant amounts routed through personal accounts and incomplete projects, this audit underscores the urgent need for reform in the state's welfare management.
Key Takeaways
- Significant financial mismanagement identified in welfare programs.
- Personal accounts used for routing project funds.
- Excess expenditures without proper documentation.
- Incomplete projects despite substantial spending on urban water supply.
- Urgent reforms needed in fund management practices.
Bhubaneswar, Sep 24 (NationPress) The Comptroller and Auditor General of India (CAG) has uncovered significant financial irregularities, potential misappropriation, and alarming deficiencies in the implementation of essential welfare and development programs in Odisha.
As per a CAG report submitted to the Odisha Assembly on Wednesday, a compliance audit of 11 sample Integrated Tribal Development Agencies (ITDAs) out of a total of 22 exposed blatant misuse of public funds between the financial years 2018-19 and 2022-23.
“Engineers responsible for project execution had personal bank accounts involved in routing Rs 148.75 crore of project funds. The audit revealed personal transactions such as ATM withdrawals, UPI transfers, mobile recharges, and even insurance premium payments from these accounts, raising serious concerns of misappropriation,” stated the CAG.
The financial watchdog further discovered that Rs 3.38 crore in excess spending occurred without any vouchers, along with payments totaling Rs 3.23 crore lacking invoices.
“In a shocking revelation, invoices totaling Rs 22.78 crore displayed irregularities like missing dates, duplicate numbers, or being associated with unregistered entities. In a flagrant violation, ITDA Paralakhemundi acquired musical instruments and costumes worth Rs 3.74 crore against an approved budget of merely Rs 73.60 lakh—over five times the sanctioned amount,” highlighted the CAG.
The audit report also indicated the poor spending efficiency of the ITDAs, which managed to spend only Rs 1,190.44 crore of the total available funds amounting to Rs 1,709.47 crore, leaving an unspent balance of Rs 519.03 crore (30 percent) during the 2018-23 period.
Additionally, the CAG identified serious irregularities in the execution of flagship programs such as Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Buxi Jagabandhu Assured Drinking Water to all Habitation (BASUDHA), and Rashtriya Uchchatar Shiksha Abhiyan (RUSA).
“The audit of Odisha’s urban water supply initiatives under AMRUT and BASUDHA revealed that despite an expenditure of Rs 2,808.27 crore, numerous projects remain unfinished and large areas of the state continue to struggle with drinking water shortages,” emphasized the CAG.
The report claimed that the water supplied in several towns of Odisha fell significantly below the mandated 135 liters per person per day, with tests revealing violations in 16 water quality parameters—including E-coli and turbidity—exceeding acceptable limits.
“A Rs 9.79 crore renovated water treatment facility in Burla was found providing turbid water due to new systems mixing with sludge from an old clarifier. Compounding the issue, solar-powered water projects valued at Rs 1.74 crore, installed in Berhampur in 2020, were rendered non-functional within three years due to insufficient maintenance,” noted the CAG.
Point of View
It's vital to acknowledge the serious implications of the CAG's findings on Odisha's welfare programs. These revelations not only highlight the necessity for stringent oversight but also reflect a broader concern regarding accountability in public financial management across the nation. It's crucial for the government to act decisively to restore trust and ensure that funds are utilized effectively for the intended beneficiaries.
NationPress
24/09/2025
Frequently Asked Questions
What financial irregularities were reported?
The CAG report highlighted massive financial irregularities, including the routing of Rs 148.75 crore through personal accounts, excess expenditures without vouchers, and invoices with discrepancies.
How much money was left unspent?
During the 2018-23 period, ITDAs left an unspent balance of Rs 519.03 crore, which is 30 percent of the total available funds.
What were the consequences of these financial lapses?
The financial lapses resulted in incomplete projects and significant deficiencies in water supply, affecting thousands of residents in Odisha.
