In its report for the year ended March 31, 2012, CAG said there were instances of inadequate provision of funds and unnecessary/excessive re-appropriations. "In many cases, the anticipated savings were either not surrendered or surrendered on the last two days of March 2012, leaving no scope for utilising these funds for other developmental purposes. All departments should closely monitor the expenditure against the allocations and incurring of excess expenditure over the grants should be strictly avoided. Surrender of funds should be done much before the close of the year, so as to enable the government to utilise the funds on other schemes. The release of funds at the end of the year should be avoided," it said.
CAG said the state government should take due care in submitting proposals for supplementary appropriations. "The excess expenditure requires regularisation by the state legislature. The anticipated savings of Rs 25,198.82 crore were surrendered on the last two working days of financial year 2011-12. In 33 cases, Rs 7,621.30 crore was surrendered, against the actual savings of Rs 6,954.77 crore, which resulted in excess surrender of Rs 666.53 crore. There was a rush of expenditure (52 to 100 per cent) under eight major heads. Persistent excess expenditure, erroneous budgeting, injudicious re-appropriations and delays in surrender of savings were noticed in the planning department," CAG said.