Audit Reports
Pondicherry
Report of 2010 - Compliance and Financial Audit on Union Territory Finances of Government of Pondicherry
Overview
The Twelfth Finance Commission recommendations were not applicable to the Union Territory of Puducherry. Consequently, no fiscal responsibility legislation was enacted by the Union Territory Government of Puducherry and target set for containing its fiscal deficit. The Government had not announced any policy initiative on the subject in its budget. The Report based on the audited accounts of the Government of Union Territory of Puducherry for the year ending March 2010, this Report provides an analytical review of the Annual Accounts of the Union Territory Government. The Report is structured in three Chapters.
Chapter I is based on the audit of Finance Accounts and makes an assessment of the Government's fiscal position as at 31 March 2010. It provides an insight into trends in committed expenditure and borrowing pattern, besides giving a brief account of Central funds transferred directly to State implementing agencies through the off-budget route. Chapter II is based on audit of Appropriation Accounts and gives a grant-wise description of appropriations and the manner in which the allocated resources were managed by the sen ice delivery departments. Chapter III is an inventory of the Government's compliance with various reporting requirements and financial rules. The Report also has additional data collated from several sources in support of the findings.
Fiscal position: Revenue receipts and revenue expenditure of the Union Territory Government increased by 16 per cent and 20 per cent respectively during 2009-10 over the previous year, resulting in a 118 per cent increase in the revenue deficit. The fiscal deficit during the year increased by 55 per cent. Fiscal liabilities of the Government grew by 17 per cent during 2009-10. The Government should make concerted efforts to contain the revenue deficit. Need to compress Non-Plan expenditure: The revenue expenditure was 89.26 per cent of the total expenditure, of which 64.71 per cent was under Non-Plan. Non-Plan expenditure increased by 13.51 per cent. Moreover, the committed expenditure comprising salaries, pension, interest payments and subsidies constituted 74.83 per cent of Non-Plan expenditure during 2009-10. As of 31 March 2010, the Government paid two instalments (70 per cent) of the Pay Commission arrears to Government servants and pensioners with a liability of payment of the third and final instalment (30 per cent) in 2010-11.