Lok Sabha Question No. 3741 (UNSTARRED), answered on 2018-08-09
Subject: Inflated Bills
Ministry: PANCHAYATI RAJ
Asked by: RAM TAHAL CHOUDHARY

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO. 3741 ANSWERED ON 09.08.2018

## Inflated Bills

## †3741 . SHRI RAM TAHAL CHOUDHARY:

Will the Minister of PANCHAYATI RAJ be pleased to state:

(a) whether bills of expenditure of Gram Panchayat and development work are being inflated to double in Jharkhand particularly in Ranchi district, if so, the details thereof;

(b) whether payment of such inflated bills are being made thereby misusing the allocated budget of Panchayati Raj in the country;

(c) if so, the details thereof and the reaction of the Government thereto; and

(d) the details of procedure and rules for effective control in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF PANCHAYATI RAJ (SHRI PARSHOTTAM RUPALA)

(a) to (c) :  Article 243J of the Constitution of India, provides that 'The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Panchayats and the auditing of such accounts'. In this context, State Governments are bestowed the powers to make provisions with respect to maintenance of accounts by Panchayats and the auditing of such accounts.

As informed by the Government of Jharkhand, no such complaints have been received about any Panchayat in the State including those in the Ranchi District.  Further, the Audit Report of Fourteenth Finance Commission (FFC) grants till the year 2016-17 for Ranchi has been received and audit team has also not brought any such matter of inflated bill into light.

It is for the State Governments to ensure proper utilization of allocated budget by Panchayat including  scrutiny  of  bills  before  payment.  In  this  context,  any  complaint  received  in  the Ministry is duly dealt with the help of State Government.

(d)  :  Ministry  of  Finance  (MoF)  guidelines dated 8.10.2015 enjoin upon States to constitute a High  Level  Monitoring  Committee  (HLMC)  headed  by  Chief  Secretary  for  monitoring  and concurrent  evaluation  of  local  bodies  and  to  ensure  that  funds  are  utilized  for  the  purpose recommended  by  the  FFC.  Under  these  guidelines,  Ministry  of  Panchayati  Raj  (MoPR)  has constituted  a  Coordination  Committee  under  the  Secretary,  Panchayati  Raj inter  alia to  guide and support States  and  local  bodies  in  the  implementation  of  FFC  recommendations,  monitor progress of expenditure of grants by local bodies and suggest remedial measures.

Further, to facilitate better monitoring of the releases / sector-wise expenditure made by Gram  Panchayats,  from  FFC  grants,  the  Ministry  has  developed  an  online  system  (MIS) (www.ffconline.gov.in).  States  have  been  asked  to  upload  data  on  the  dashboard  on  regular basis. Moreover, the submission of audited account that relates to year not earlier than two years preceding  the  year  in  which  Gram  Panchayat  claims  the  performance  grants,  is  a  mandatory condition for the grant under FFC. FFC grants is also subject to audit by State Government and the Comptroller and Auditor General of India (C&AG).

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