The Comptroller and Auditor General of India (CAG) noted that the funds directly transferred from the Centre to various agencies in Gujarat have increased by 350% since 2015. These funds have been transferred to implementing agencies like private trusts, academic institutions, and individuals. The quantum of funds did not reflect in the state's annual finance accounts.
The report pointed out that the funds transferred rose from Rs 2,542 crore in 2015-16 to Rs 11,659 crore in 2019-20. The CAG also pointed out how sizable funds for various schemes and programmes in social and economic sectors were given to private agencies.
According to the report, private sector companies received Rs 837 crore, and private academic institutions received Rs 17 crore. Trusts and NGOs received Rs 79 crore and Rs 18.35 crore, respectively. Individuals in Gujarat received Rs 1.56 crore in 2019-2020 alone, reported The Indian Express.
The auditing body observed that the annual finance accounts did not capture the flow of these funds because they were not routed through the state budget/ state treasury system. Hence, Gujarat's receipts and expenditure, as well as the fiscal variables and parameters derived from them, did not have the complete picture.
CAG report on Gujarat's finance said that the Government of India decided to release all assistance for centrally sponsored schemes and additional central assistance to the state governments from April 1, 2014. In the case of Gujarat, the transfer of central funds continued directly to agencies till 2019-2020.
The report noted that Rs 3,133 crore was transferred as part of Pradhan Mantri Kisan Samman Nidhi and Rs 1,667 crore given to the Gujarat Metro Rail Corporation. Rs 593 crore was transferred directly for Mahatma Gandhi National Rural Employment Guarantee Scheme. Another Rs 182 crore and Rs 97 crore were given to Member of Parliament Local Area Development Scheme and Pradhan Mantri Matru Vandana Yojana.