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Bhubaneswar, Dec 15: The Directorate of Local Fund Audit of the state government has in its annual report for 2016-17, released Thursday, pointed out that as of March 2016 Rs1,664.64 crore of funds remained unspent with the 105 Urban Local Bodies (ULBs) audited.
The overall utilisation of grants during 2015-16 was only 39.02 per cent, the report said. “This defeats the very objectives of the developmental schemes meant for urban population,” the report stated.
The report is particularly as the state is set to hold elections to ULBs next year. The report indicates that the civic bodies have failed miserably in utilising funds allocated to them for development works.
The report said utilisation certificates (UCs) to the tune of Rs2,898.34 crore were pending with the 105 ULBs as of March 2016. Of these, UCs to the tune of Rs 2055.61 crore were pending for more than one year.
The report has further revealed that the percentage of submission of UCs was less than 19 per cent in 2015-16. The audit report has also exposed several financial irregularities in these civic bodies.
“In 2015-16, irregular payment of Rs11.72 crore was made in 41 municipal bodies towards wages to DLR/CLR/NMR engaged unauthorisedly in violation of government orders,” the report states. “Irregular purchase of electrical goods worth Rs7.90crore was made in six ULBs without inviting tender, while shop rent, market rent, lease amount to the tune of Rs5.71crore was pending realization from tenants which led to loss of revenue for 26 ULBs,” it added.
The report also showed that new valuation of holding tax had not been made for more than 10 years by 27 ULBs and for five years by 5 ULBs that not only violated law but also deprived ULBs from augmenting their revenue generation.
“Holding tax to the tune of 71crore remained uncollected in the ULBs till March 2016 and the overall collection was only 39 per cent in that fiscal,” the report stated.
Recently, the Housing and Urban Development Minister had also submitted in the state assembly funds granted for development Bhubaneswar as a Smart City were also unspent. According to the minister, Rs349 crore out of previously allocated Rs372 crore towards development of the Smart City remain unspent.
