India’s Bihar State Faces Audit Heat Over ₹70,877 Crore In Unaccounted Public Funds

The Government of Bihar has failed to account for ₹70,877.61 crore in public funds over several financial years, according to the State Finances Audit Report for the year 2023–24 by the Comptroller and Auditor General (CAG) of India.

The report, tabled in the state legislature and reviewed by IndianRepublic.in in full, shows that 49,649 Utilisation Certificates (UCs), amounting to ₹70,877.61 crore, remained pending as of March 31, 2024. 

These certificates are statutory documents required to confirm that funds disbursed have been used for their sanctioned purpose.

“In the absence of UCs, there is no assurance that funds disbursed have been used for the intended purpose,” the CAG wrote in Chapter IV of the report (Section 4.5, Page 119). “Moreover, high pendency of UCs is fraught with the risk of embezzlement, misappropriation, and diversion of funds.”

The report states that some of the pending UCs date back to 2002–03 and are linked to critical Centrally Sponsored Schemes (CSS) such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Sarva Shiksha Abhiyan (SSA), and the Pradhan Mantri Awas Yojana (PMAY).

Additionally, ₹7,380 crore lay unutilized across 93 bank accounts of implementing agencies as of March 2024. These funds were drawn from the state exchequer but remained parked outside the Consolidated Fund, thereby avoiding legislative scrutiny.

“Funds meant for social welfare schemes, infrastructure and nutrition support continue to remain idle in the bank accounts of various executing agencies,” the report notes under Section 4.3, Pages 116–117.

Departments involved include the Rural Development Department, Panchayati Raj, Urban Development, Social Welfare, and Health.

The CAG observed that despite repeated directions from the Finance Department, these agencies failed to submit expenditure details or return unused balances. 

This widespread pendency was noted as an ongoing concern in previous audit reports as well. This indicates systemic weaknesses in fund monitoring and control.

According to the report, Bihar’s Finance Department had issued multiple directives to enforce timely UC submission. However, compliance remained negligible.

The report attributes the situation to:

• Non-enforcement of financial rules (Section 4.5, Page 119),

• Lack of reconciliation of bank accounts (Section 4.10, Page 129),

• Delay in submission of expenditure vouchers by Single Nodal Agencies (Section 4.19, Page 135).

As per Article 151 of the Indian Constitution, the CAG is mandated to report such audit findings directly to the Governor, who then places them before the State Legislature.

No official response from Bihar’s Finance Department was included in the report.