CAG Reports: Unauthorized Spending by Former Telangana Government

Misuse of public funds by KCR

The mismanagement of Telangana's finances during the tenure of K. Chandrashekhar Rao's administration has been revealed by the Comptroller and Auditor General (CAG). The most recent report reveals an enormous overspending of Rs 2,88,811 crore between 2014–15 and 2021–22, which is significantly higher than the allotted funds and goes against what the law says. By the second year, the effects of the government's negligence in handling the budget became apparent. Its spending was met with the help of additional loans. In other words, interest payments increased as the number of loans increased. Increased spending on welfare programs and development activities helped the government hide its larger interest and loan repayment obligations to the Reserve Bank of India (RBI).

People are still reeling from a string of scandals, including the massive scam involving the Kaleshwaram lift irrigation scheme (which may have involved more than Rs 1,00,000 crore), the sheep scam, the metro scam, the Dharani scam, and others.

According to CAG’s report-

“The excess expenditure is to be regularised after discussion in the Public Accounts Committee (PAC) in the Legislature. The Committee met five times – in May 2018, twice in August 2021, February 2022, and March 2022 – to discuss 10 paragraphs pertaining to State Finance Audit Reports. However, the issue of regularisation of expenditure incurred in excess of Legislative authorization has not yet been taken up.”

According to the CAG, the government's budgetary and financial control system was undermined by overspending, which in turn promoted a lack of fiscal discipline.