CAG shines a light on state govts' expenses, asks officials for clarity

The CAG last week raised concerns over unclassified expenditures, questioning state finance secretaries over 'hidden' funds marked for various handouts

Where does the West Bengal government park the pocket allowances it pays to associations and clubs across the state to finance activities like Durga Puja? Or where does the Uttar Pradesh government keep the funds it uses to support passengers or their heirs if a state transport bus they were travelling in is involved in an accident?

These were some of the hard questions asked by the Comptroller and Auditor General (CAG) to state finance secretaries last week. What emerged from the meeting was that most state governments do not follow a common rule or procedure to