CAG Report on Union Government Accounts 2023-24
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: Cesses were generally assumed to be fully transferred and utilized for their legally mandated socio-economic objectives. NOW: The CAG report officially documented a Rs. 3.69 lakh crore shortfall, showing that these funds were retained in the Consolidated Fund for general use.
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BEFORE: Disbursed government grants were broadly recorded as final expenditure under the assumption of proper end-use tracking. NOW: The audit flagged Rs. 54,282 crore as unaccounted expenditure, emphasizing that missing Utilization Certificates leave a massive blind spot in actual fund usage.
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BEFORE: The retention of cesses in the Consolidated Fund was often overlooked in headline budget figures. NOW: The CAG's findings highlight how this retention artificially inflates available general revenues, effectively masking the true extent of the fiscal deficit.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the financial administration of cesses in India? 1. Cesses collected by the Union Government are directly deposited into the Public Account of India without entering the Consolidated Fund of India. 2. The failure to transfer collected cesses to their designated reserve funds can lead to an understatement of the government's fiscal deficit.