The Comptroller and Auditor General (CAG) of India has expressed grave concerns on financial management in the state of Jharkhand after unearthing that government departments did not provide records on expenditure amounting to ₹4531 crore to be spent in the span of 25 years. The discovery was discussed in the most recent audit report, which was tabled in the Jharkhand Assembly, creating a lot of concern with regard to transparency and accountability in the financial system of the state.
The report indicates that the irregularity is caused by 17,877 short contingency bills that were issued during 2000-01 and 2024-25. These bills are normally on a temporary basis advanced to departments to spend on an emergency basis, and they should be followed by detailed bills to show how the money was actually used. The CAG, however, observed that in the case of Jharkhand, thousands of such advances remained unadjusted, and so there is no obvious trail of how the 4,531 crore was utilized.
The CAG cautioned that such long-term non-adjustment is not only against the fundamental financial principles but also highly undermines the control over government spending. In the absence of supporting vouchers, it is impossible to determine whether the money was used for the purpose or went to other places. The report had highlighted that such laxity would pose a serious threat of embezzlement and misappropriation of funds, particularly within such a time span.
Besides the unexplained contingency bills, the audit also revealed massive non-submission of Utilization Certificates (UCs) – which are the fundamental documents that the departments and agencies need to submit in order to establish that they have duly used grants that are released to them. It did not file 5,574 utilization certificates with a total value of 39,303.59 crore in the 2023-24 financial year alone. All in all, on March 31, 2025, there are still 47,281 UCs of 1,31,262.21 crore pending.
The CAG noted that the lack of timely utilization certificates is not only confusing the financial reporting in the state, but also influences the planning and allocation of funds in the future. The departments that do not deliver UCs are still granted fresh grants, and the chain of uncontrolled spending has been repeated.
Other areas reported discrepancies as well, such as in the mining sector, where revenue loss was realized as a result of bad enforcement, as well as the impossibility of paying royalties and penalties. The CAG observed that these are systemic lapses in governance that need to be corrected immediately.
The revelations have elicited political responses, as opposition parties are seeking redress and a full-scale investigation into the lost records. There have also been calls by financial experts for the tightening of monitoring mechanisms, digital advances and grant monitoring, and an increase in administrative control.
The revelations depicted in the report, as the state government reexamines it, highlight that the state needs urgent reforms to instill more confidence in its public financial management and regain the public trust in the state.
