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Compliance Financial Performance
Karnataka

Report of 2010 - Compliance, Financial and Performance Audit on State Finances of Government of Karnataka

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State
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Overview

In Karnataka, fiscal reforms and consolidation were brought to the forefront with the State Government formulating the first Medium Term Fiscal Plan (MTFP) for the period 2000-05 based on broad parameters of fiscal correction laid down by the Eleventh Finance Commission (EFC). MTFP became a rolling annual document and the fiscal targets and policies set out in MTFP were dovetailed to the annual budgetary exercise to operationalise the restructuring plan. Karnataka was the first State to enact (September 2002) the Fiscal Responsibility Act (FRA) providing statutory backing to MTFP. The Act aims at ensuring fiscal stability and sustainability, enhance the scope for improving social and physical infrastructure and human development by achieving revenue surplus, reducing fiscal deficit, removing impediments to effective conduct of fiscal policy and prudent debt management through limits on borrowings, debt and deficits, greater transparency in fiscal operations by the use of medium-term fiscal framework.

Though, the Comptroller and Auditor General (C&AG) has been commenting upon the State's Finances, the comments formed part of the civil audit report and remained camouflaged in the large body of audit findings on compliance and performance audits. In recognition of the need to bring State finances centre-stage, a stand-alone report on State Government finances was considered appropriate. Accordingly from the report year 2008-09 onwards, the C&AG has decided to bring out a separate volume titled 'Report on State Finances'.                                                                             

Based on the audited accounts of the Government of Karnataka for the year ending March 2010, this report provides an analytical review of the annual accounts of the State Government. This report is structured in three chapters.
                           
Chapter 1 is based on the audit of Finance Accounts and makes an assessment of Government of Karnataka's fiscal position as at 31 March 2010. It, inter-alia, provides an insight into trends in committed expenditure, borrowing pattern besides, a brief account of Government of India funds transferred directly to the State implementing agencies through off-budget route.
Chapter 2 is based on the audit of Appropriation Accounts, gives description of appropriations and the manner in which the allocated resources were managed by the service delivery departments.                                                              
Chapter 3 is an inventory of Karnataka Government's compliance with various reporting requirements and financial rules. The report also has an appendage of additional data collated from several sources in support of these findings.

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Last updated: 25 Nov 2024
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