Hooda's advice to CAG to accept concept of digital information

by Haryananewswire

CHANDIGARH, NOV 16

Haryana Chief Minister Bhupinder Singh Hooda said that the  Comptroller and Auditor General (CAG) should accept the concept of digital information and do away with manual preparation of accounts.

          The Chief Minister who was  speaking in a  meeting of Chief  Ministers of northern states and Union Territories with the Union Finance Minister, Mr P. Chidambaram, in New Delhi today,said although, the State envisages a paperless operation in treasuries as well as other matters, yet the concept has got stuck due to lack of willingness on the part of the CAG to move towards this direction while maintaining the accounts of the State. Because of this insistence, all over the country the State Governments are under compulsion to physically share the paper vouchers or receipts with the Accountant General. “I believe that the Secretary Financial Services has now taken up the issue with CAG on our request”, he added.

Mr Hooda lauded the decision of the Central Government   to shift to Electronic Benefit Transfer (EBT) for several schemes and programmes of assistance to the public at large. He said that this would prevent pilferage and rent seeking activities and would provide direct benefit to the needy. The linkage with the Aadhar card will go a long way in this direction. However, financial inclusion of the deprived sections, particularly in the rural areas would be essential in this endeavour. It would, therefore, be essential for the Banks to ensure that each family has at least one account. The efficiency of the banking system would be stretched to the maximum. Simultaneously, State Government departments will also need to reorient themselves for this shift, he added.

          He said that State and the Central Governments have already taken steps for computerization of treasuries and electronic payments. An Integrated Financial and Human Resource Management Information System project is already under process of development in the State. He said that the disbursement of pension and allowances through EBT was started in Haryana from the month of March 2011. The payments to the actual beneficiaries were being made through a biometric system. However, due to the employment of less number of Business Correspondents by the banks and lack of regular availability of those engaged, led to the suspension of EBT through individual accounts of the beneficiaries. Presently, the pensions and allowances are being disbursed through Gram Panchayats in rural areas and through Municipal Committees or Corporations   in urban areas. From the month of June 2012 (payable in July 2012) the amount of pension and allowances is being directly credited into the dedicated bank accounts of the Gram Panchayats or MCs on first  of every month. The disbursement is completed in first five days of every month. 

Mr Hooda said that Haryana Government has taken the first step  towards Aadhar linked direct payment of scholarships to students in   schools. For the last six months the Technical Education department is reimbursing all fees and paying scholarships  to all students belonging to Scheduled Castes and Backward Classes   in Polytechnics through direct transfer to their accounts electronically.  

Mr Hooda   drew the attention of the Central  Government towards the issue of Central Sales Tax (CST) saying that its compensation is more important for Haryana because the proportion of CST revenue vis-a-vis the total tax revenue of the state is very high for it being a net producing state.  Last year, the state had suffered a loss of Rs. 3100 crore on account of reduction in the rate of CST from four to two per cent and for the current year, the loss would be to the tune of Rs. 3500- Rs 3600 crore. Such a loss will have a crippling effect on the state finances unless the state is compensated for the loss in respect of the previous financial year as well as the current financial year. He said that Haryana has always been a front runner in introducing tax reforms and the state whole heartedly supports and appreciates the initiative taken by the Government of India and Empowered Committee for introduction of Goods and Services Tax (GST). However, being a net producing state, Haryana will incur huge revenue loss on account of zero rating of CST under the GST dispensation and accordingly, under the GST regime, State should be compensated by the Union Government on long-term basis, he added.