CAG flays finmin for not adopting rational method for forecast
New Delhi: Government's auditor CAG has criticised the Finance Ministry for continuously making "optimistic projections" on revenue collection in budget presentation even as actual collection was short of estimates year after year.
"Fluctuating gap between revised estimates/budget estimates suggest that the department did not adopt any rational method for pre-budget analysis and forecasting.
"Despite the actual collections falling short of the budget estimates year after year, the government continued to make optimistic projections during presentation of the annual budget," Comptroller and Auditor General said in its report tabled in Parliament on Tuesday.
As per the audit report, the percentage variation during the last decade between budget estimates and actual collections was in the range of (-) 16.02 percent to (+) 22.35 percent.
The percentage variation between budget estimate and actual collection was (-)16.02 percent in 2008-09, while it was (+) 22.35 percent in 2005-06.
While the budget estimates in 2008-09 was Rs 1,18,930 crore, the actual receipts stood Rs 99,879 crore, the auditor said citing Finance Ministry's data.
The revised estimates to actual receipt also varied from (-) 7.52 percent to (+) 5.43 percent during the last decade.
While the revised budget estimates in 2008-09 was Rs 1,08,000 crore, the actual receipts stood Rs 99,879 crore, the CAG said.
The revised budget estimates in 2006-07 was Rs 81,880 crore, the actual receipts stood at Rs 86,327 crore, it said.
Even in 2011-12, the percentage variation between actual receipts and budget estimates was (-) 1.20 percent, while the percentage variations between actual receipts and revised budget estimates was (-) 2.04 percent.