The Comptroller and Auditor General (CAG) has criticised the ministry of defence (MoD) for "poor financial management" on account of the repeated surrender of the final grant of funds to the services.
The CAG report says the amount of surrenders increased fivefold in 2000-2001 over the previous year and criticises the surrender of 28 per cent of the grants because they could not be utilised as expected.
In its report, which was released today, the CAG found that in 2000-01, the net unspent provision added up to 8784 crore. Worse most of the unspent money belonged to the capital outlay of the three services. This relates to perparednesss of the services.
The CAG has observed that if the surrender of funds had been timely this money could have been utilised elsewhere.
