Report No 2 of 2016 - Performance Audit Mizoram

Overview

The Mizoram State Lottery was introduced to augment the revenue of the State for the purpose of health care, education, public sanitation and other social sector services. Running of the Mizoram State Lottery was mainly controlled by the distributors while State Government was left with its revenue limited to Minimum Guaranteed Revenue (MGR). Out of the total sale proceeds of Rs. 11,834.22 crore during 2012-13 to 2014-15, the

distributors deposited only Rs. 25.45 crore {as Minimum Guaranteed Revenue (MGR) and Administrative Expenses} to the Consolidated Fund of the State. The distributors neither deposited the balance amount of Rs.  11,808.77 crore to the Consolidated Fund of the State nor was it demanded by the Government. Against the revenue accrued to the distributors of Rs. 2,182.79 crore (18.44 per cent of the gross sale) during 2012-13 to 2014-15, the Government received a paltry revenue of Rs. 25.45 crore (0.22 per cent of the gross sale) because fixing the revenue realizable from lottery per draw at the MGR had no relation to the

volume of sale of lottery tickets. This resulted in loss of revenue and undue financial benefit to the distributors

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