CAG flags ₹49,649 crore in pending utilisation certificates in Bihar

The Comptroller and Auditor General (CAG) of India, in its report on the Finances of Bihar for the year 2023-24, has flagged significant financial irregularities, including pending Utilisation Certificates (UCs) amounting to ₹49,649 crore as on March 31, 2024. The report was tabled in the State Assembly on Thursday (July 24, 2025), the fourth day of the ongoing monsoon session.

“The top five defaulting departments included the Panchayati Raj Department, Education Department, Urban Development Department, Rural Development Department, and Agriculture Department,” the report stated. It further observed, “In the absence of UCs, there is no assurance that funds disbursed have been used for the intended purpose. Moreover, high pendency of UCs is fraught with the risk of embezzlement, misappropriation and diversion of funds.”

The audit report also highlighted that Abstract Contingency (AC) Bills worth ₹22,130 crore were pending for submission of Detailed Contingency Bills as of March 31, 2024.

It further noted that the State government, through a State Public Sector Enterprise (SPSE), raised ₹53.48 crore as off-budget borrowings that did not flow into the Consolidated Fund of the State but are still required to be repaid and serviced through the budget. “This indicates lack of internal controls in the administrative departments,” the report said.

However, the CAG report also recorded a rise in actual expenditure by the State. “The Budget Outlay (Actual Expenditure) of the State grew from ₹1,49,641.92 crore in 2019-20 to ₹2,60,718.07 crore in 2023-24,” it stated.

“During financial year 2023-24, GSDP of the State grew at 14.47% over the previous year, and the revenue expenditure increased by 3.55% whereas revenue receipts rose by 11.96%,” the 166-page report said.

The committed expenditure, which includes interest payments, salaries, and pensions, accounted for 36.89% of revenue expenditure and 36.35% of revenue receipts during 2023-24. “The committed expenditure increased at an average rate of 8.86%, from ₹48,477.72 crore in 2019-20 to ₹70,282.32 crore in 2023-24,” it said.

For the financial year 2023-24, the State budget stood at ₹3,26,230.12 crore. “The State spent ₹2,60,718.07 crore (79.92% of the total budget), which was less than its original budget. The State surrendered ₹23,875.55 crore (36.44%) of its total savings of ₹65,512.05 crore,” the report said.

The report also flagged unadjusted temporary advances of ₹184.52 crore and unadjusted imprest of ₹25.46 crore as on March 31, 2024. “These unadjusted amounts from departments such as Building Construction, Public Health Engineering, Irrigation, Road Construction (National Highway), Rural Works, Minor Irrigation, Local Area Engineering Organisation, and Road Construction were required to be adjusted and deposited to the treasury concerned,” it stated.

Significantly, the report pointed out that the Public Accounts Committee (PAC) did not hold any sittings to discuss the State Finances Audit Reports (SFARs) during 2023-24. “Out of 388 paragraphs pertaining to the years from 2008-09 to 2021-22, only three paras were discussed and 385 were pending for discussion till March 2024,” it said.

The CAG further noted that the State government failed to discharge its liability of ₹144.29 crore in interest payments towards interest-bearing deposits during the financial year. It also highlighted that off-budget liabilities of ₹53.48 crore were not disclosed in the budget documents or the annual financial statements.