KCR flies off the handle: vents ire at Etala Rajender over serious lapses as pointed out in CAG Report

​Hyderabad: Telangana Finance Minister Eatala Rajender has taken the rap from Chief Minister K Chandrasekhar Rao after the CAG found that the state’s finances were managed poorly and that the accounting practices used were irregular in 2016-17.

The revelation threw a wet blanket on the state as it had been under the impression that it was the best managed state with surplus finances.  Taking a serious note of the CAG findings, the Chief Minister apart from taking Rajender to task for his failure in following official procedures in financial management, ordered an internal audit to ascertain if the discrepancies and errors unearthed by the CAG were as serious as pointed out and check such mistakes in the coming year.  

The CAG audited Telangana finances and disclosed that the revenue surplus was overstated by Rs 6,778 crore due to irregular accounting. Top sources told The Hans India that KCR rapped Rajender on his knuckles for his failure in setting the management of finances in the right direction.

Sources said that the CM went off his deep end at the finance minister for not maintaining financial discipline in the release of money borrowed through Uday bonds to the Discoms. Under the Uday scheme, government borrowed Rs 8,931 cr and released only Rs 7,500 cr. 

The entire amount transferred to the Discoms has been show as equity under capital expenditure. The authority observed booking of Rs 3,750 cr (50 per cent of Rs 7,500 cr released to Discoms) as equity instead of grant resulted in overstatement of revenue surplus to that extent.

Sources said that the CAG findings will mar the prospects of getting more loans under FRBM Act (Fiscal responsibility Budget Management) and financial institutions.  Taking serious note of it, KCR called a meeting with state Finance Secretary K Ramakrishna Rao and other top officials.  The CM instructed the officials to prepare a detailed note on CAG findings on state’s finances. 

Since 2018-19 financial year is crucial for his government as the elections are slated to be held next year, KCR is working overtime to fulfill all the assurances made in the budget proposals mainly the implementation of crop investment scheme which requires Rs 12,000 cr. Without out healthy financial management, it will be difficult for Telangana to achieve the desired goals in the new financial year, the officials said.