Financial
Uttar Pradesh

Report of 2009 - Financial Audit on State Finance of Government of Uttar Pradesh

Date on which Report Tabled:
Thu 12 Aug, 2010
Date of sending the report to Government
Government Type
State
Sector Finance

Overview

In February 2004, Government of Uttar Pradesh responded to the Twelfth Finance Commission's recommendation by legislating its "Fiscal Responsibilities and Budget Management Act" (FRBM) setting out a reform agenda through fiscal correction path in the medium term with the long-term goal of securing growth with stability for its economy. The State Government's commitment to carry forward these reforms is largely reflected in certain policy initiatives announced in the budgets subsequently. While the benefits of FRBM legislation have been realised to a great extent already, in terms of key fiscal indicators, the policy initiatives to augment its resources by implementing VAT, bringing new items in tax net and according priority to capital expenditure will go a long way in building up the much needed 'fiscal space' for promoting fiscal stability and improving quality of public expenditure.

C&AG's reports have been commenting upon the Government's finances since the FRBM legislation of2004 and have since then published three reports. As these comments formed part of the civil audit report containing audit findings on compliance and performance audit, it was felt that the audit findings on State finances did not get proper attention of the stakeholders. In recognition of the need to bring State finances to centre-stage, it was thought appropriate to bring out a separate report on State Government finances to highlight these findings.

The report based on the audited accounts of the Government of Uttar Pradesh for the year ending March 2009, this report provides an analytical review of the Annual Accounts of the State Government. The report is structured in three Chapters. Chapter 1 is based on the audit of Finance Accounts and makes an assessment of Uttar Pradesh Government's fiscal position as on 31 March 2009. It provides an insight into trends in committed expenditure, borrowing pattern, besides a brief account of Central funds transferred directly to the State implementing agencies through off-budget route. Chapter 2 is based on audit of Appropriation Accounts and it gives the grant-by-grant description of appropriations and the manner in which the allocated resources were managed by the service delivery departments. Chapter 3 is an inventory of Uttar Pradesh Government's compliance with various reporting requirements and financial rules. The report also has an appendage of additional data collected from several sources in support of the findings.

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