Audit Reports
Meghalaya
Report of 2012 - Compliance, Financial and Performance Audit on State Finances of Government of Meghalaya
Overview
This Report on the Finances of the Government of Meghalaya is being brought out with a view to assess objectively the financial performance of the State during the year 2011-12. The aim of this Report is to provide the State Government with timely inputs based on actual data so that there is a better insight into both well performing as well as ill performing schemes/programmes of the Government. To give a perspective to the analysis, an effort has been made to compare the achievements with the targets envisaged by the State Government in the budget estimates of 2011-12, Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act, 2006 (amended in October 2011) and projections made by the Thirteenth Finance Commission.
Based on the audited accounts of the Government of Meghalaya for the year ending March 2012, this report provides an analytical review of the Annual Accounts of the State Government. The report is structured in three Chapters. Chapter I is based on the audit of Finance Accounts and makes an assessment of Meghalaya Government's fiscal position as on 31 March 2012. It provides an insight into trends in expenditure, borrowing pattern besides a brief account of central funds transferred directly to the State implementing agencies through off-budget route. Chapter II 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 III is an inventory of Meghalaya Government's compliance with various reporting requirements and financial rules.
The fiscal position of the State viewed in terms of key fiscal parameters - revenue surplus, fiscal deficit, primary deficit - indicated deterioration in the financial health of the State during 2011-12 relative to previous four years (2007-11). During 2011-12, the State had become a revenue deficit State from its status of revenue surplus as the revenue surplus which was RS 247.74 crore during 2010-11 turned to a revenue deficit of RS 180.34 crore attributable to the disproportionate growth of revenue expenditure (20.49 per cent) vis-a-vis revenue receipts (9.25 per cent) in 2011-12 over previous year. The fiscal deficit as well as primary deficit of the State have also significantly increased during 2011-12 compared to previous year.