Finance ministry under fire

CAG has criticised the finance ministry for continuously making "optimistic projections" on revenue collection in Budget presentation though actual collection was short of estimates year after year.

"Fluctuating gap between revised estimates/Budget estimates suggest that the department did not adopt any rational method for pre-budget analysis and forecasting," CAG said in its report tabled in Parliament on Tuesday. The report said the percentage variation in the last decade between Budget estimates and actual collections was (-)16.02 per cent to (+)22.35 per cent. The percentage variation between Budget estimate and actual collection was (-)16.02 per cent in 2008-09 and (+)22.35 per cent in 2005-06.

While the Budget estimates in 2008-09 was Rs 1,18,930 crore, the actual receipts stood Rs 99,879 crore, the auditor said, citing finance ministry's data.

The revised estimates to actual receipt also varied from (-)7.52 per cent to (+)5.43 per cent during the last decade.