AP FM blames CFMC for large-scale discrepancies in accounts

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Amaravati, July 13 (PTI): Andhra Pradesh Finance Minister Buggana Rajendranath on Tuesday blamed the Comprehensive Financial Management System (CFMC), being used by the state government for its payments, for the large scale discrepancies in accounts for 2019-20 and 2020-21 financial years.

'There are several lacunae in the CFMS and there are programming errors.

This system was introduced by the previous Telugu Desam government.

It will take another year to set the CFMS in order,' the Finance Minister told a press conference.

Buggana was reacting to Public Accounts Committee Chairman Payyavula Keshav's request to Governor Biswabhusan Harichandan for afull-fledged audit of the state Finance department as large sums in excess of a staggering Rs 41,000 crore remained unaccounted for.

On July 8, the PAC Chairman met the Governor at the Raj Bhavan in Vijayawada and submitted a memorandum in this regard, attaching a letter written by the Principal Accountant General to the Principal Finance Secretary on the gross discrepancies in the accounts for 2019-20 and 2020-21 financial years.

'Large sums of money, to the extent of Rs 41,043 crore, have not been accounted for as per the codal provisions.

It appears that the said amount is being transferred or withdrawn in gross violation of Andhra Pradesh Treasury Code,' Keshav told the Governor.

He said such gross violations need to be checked on an emergency basis.

The next day, Principal Finance Secretary S S Rawat claimed that nothing was amiss with the payments position and maintained that everything was happening as per the book.

Rawat said the issues raised by the auditor have 'arisen due to operation of adjustment transactions'.

Reiterating this, the Finance Minister said a sum of Rs 10,895 crore remained in the personal deposit accounts in the 2020-21 financial years.

'This has been subsequently restored to the Consolidated Fund at the end of the financial year, else the funds would have elapsed,' Buggana pointed out.

He cited the payment of Rs 2,728 crore to farmers under the Rythu Bharosa scheme, which the state government sought to do through the Centres e-Kuber platform.

'It did not work out due to technical issues and we had to do it through RTGS.

There were similar instances where another sum of Rs 8,869 crore was revalidated,' he said.

On excessive borrowing by the government, the Finance Minister said they were using the money for distribution to people under various freebie schemes.

'Yes, the situation is bad. Covid-19 has compounded it.

Whats wrong in borrowing?,' he asked.

Even the Centres borrowings touched Rs 18 lakh crore, way above the three per cent limit under the Fiscal Responsibility and Budget Management Act, Buggana said.

'PAC is a responsible position.

Instead of writing letters and going public, its chairman could have discussed the subject with the government.

But Keshav displayed undue haste and fell flat, the Finance Minister remarked. PTI DBV APR ADMINISTRATOR APR ADMINISTRATOR

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