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Bengal governor asks CM Mamata Banerjee to give details of Rs 1.17 lakh crores central fund utilisation

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NEW DELHI: The feud between West Bengal governor CV Ananda Bose and chief minister Mamata Banerjee doesn't seem to end anytime soon. In the latest episode of Bose vs Banerjee, the former wrote a letter to the chief minister seeking information regarding the utilization of Rs 1.17 lakh crores of central funds allocated to the state for the 2023-24 under the various schemes, reports news agency PTI citing a source at the Raj Bhavan.

The source further revealed that the governor's letter was prompted by information that the state government has failed to submit several Comptroller and Auditor General (CAG) reports to the assembly, thereby breaching its constitutional duty.

"The West Bengal government has been allotted Rs 1.17 lakh crore of central funds in financial year 2023-24. There are allegations of gross misuse of those funds. The fiscal situation of West Bengal is confronting multiple fiscal risks and public financial management issues," the source told news agency PTI.

In his letter, the governor also highlighted several issues, including the increase in fiscal deficit from approximately Rs 33,500 crore in 2018-19 to around Rs 49,000 crore in 2022-23, while the GSDP-debt ratio increased from 35.69 per cent to over 37 per cent during the same period.

Additionally, Bose pointed out that the state government used a substantial portion of public debt receipts for debt repayment from 2021-22 to 2022-23.

"The West Bengal government has also benefitted hugely from successive Finance Commission awards. As per the Fifteenth Finance Commission Award, the state government has been recommended to receive a revenue deficit grant of Rs 40,115 crore from 2021-22 to 2024-25. This grant is as high as 13.62 per cent of the total revenue deficit grant recommended by the Fifteenth Finance Commission for the states. In 2023-24, out of total revenue of Rs 2.13 lakh crore of West Bengal, central transfer alone was Rs 1.17 lakh crore constituting around 55 per cent of the total revenue of the state," the source said.

He further mentioned that six audit reports by the Comptroller and Auditor General (CAG) on the West Bengal government have not been presented in the state assembly that includes Compliance Audit Report 2020-2021 (Report No. 2 of 2022), Audit Report 2020-2021 (Report No. 3 of 2022) 3), the State Finances Audit Report (SFAR) 2021-2022 (Report No. 1 of 2023), the Audit Report 2021-2022 (Report No. 2 of 2023), Performance & Compliance Audit Report 2021-2022 (Report No. 1 of 2024) and the State Finances Audit Report (SFAR) 2022-2023 (Report No. 2 of 2024).

In his letter, Bose cited Article 151 of the Indian Constitution, which mandates that CAG audit reports related to a state's accounts must be submitted to the governor, who shall then ensure their presentation before the state assembly.

Bose also stated that the state government is responsible for taking the necessary steps to table the CAG reports in the assembly, as per the rule.

Additionally, the governor called upon the state government to maintain fiscal prudence and transparency, and to present the same before the cabinet. He also suggested the issuance of a White Paper detailing the state's fiscal situation.
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