Certificate of the Comptroller and Auditor General of India
                              on Finance Accounts
          This compilation containing the Finance Accounts of the Government of Bihar for
the year ending 31 March 2021 presents the financial position along with accounts of the
receipts and disbursements of the Government for the year. These accounts are presented in
two volumes. Volume-I contains the consolidated position of the state of Finances and
Volume-II depicts the Accounts in detail. The Appropriation Accounts of the Government for
the year for Grants and Charged appropriations are presented in a separate compilation.
          The Finance Accounts have been prepared under my supervision in accordance with
the requirements of the Comptroller and Auditor General's (Duties, Powers and Conditions of
Service) Act, 1971 and have been compiled from the vouchers, challans and initial and
subsidiary accounts rendered by the treasuries, offices and departments responsible for the
keeping of such accounts functioning under the control of the Government of Bihar and the
statements received from the Reserve Bank of India. Statements 8, 9, 10, 15 (Annexure-I),
17(b), 17(c), 19 and 20 and Appendices III, IV, IX, XI and XII in this compilation have been
prepared directly from the information received from the Government of
Bihar/Corporations/Companies/Societies who are responsible to ensure the correctness of such
information.
          The treasuries, offices and/or departments functioning under the control of the
Government of Bihar are primarily responsible for preparation and correctness of the initial
and subsidiary accounts as well as ensuring the regularity of transactions in accordance with
the applicable laws, standards, rules and regulations relating to such accounts and transactions.
I am responsible for preparation and submission of Annual Accounts to the State Legislature.
My responsibility for the preparation of Accounts is discharged through the office of the
Principal Accountant General (A&E). The audit of these accounts is independently conducted
through the office of the Accountant General (Audit) in accordance with the requirements of
Article 149 and 151 of the Constitution of India and the Comptroller and Auditor General's
(Duties, Powers and Conditions of Service) Act, 1971, for expressing an opinion on these
accounts based on the results of such audit. These offices are independent organisations with
distinct cadres, separate reporting lines and management structure.
          The audit was conducted in accordance with the Auditing Standards generally
accepted in India. These Standards require that we plan and perform the audit to obtain
reasonable assurance that the accounts are free from material misstatement. An audit includes
examination, on a test basis, of evidence relevant to the amounts and disclosures in the
financial statements.
          On the basis of the information and explanations that my officers required and have
obtained, and according to the best of my information as a result of test audit of the accounts
and on consideration of explanations given, I certify that, to the best of my knowledge and
belief, the Finance Accounts read with the explanatory Notes to Accounts give a true and fair
view of the financial position, and the receipts and disbursements of the Government of Bihar
for the year 2020-21.




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Points of interest arising from study of these accounts as well as test audit conducted during
the year or earlier years are contained in my Financial, Compliance and Performance Audit
Reports on the Government of Bihar being presented separately for the year ended
31 March 2021.

Emphasis of Matter
       I want to draw attention to the following significant issues/concerns, which are
important from the point of view of accuracy, transparency and completeness of these
accounts and maintaining legislative financial control over public finances:

1.     Total contribution towards National Pension Scheme (NPS) was ₹1,924.80 crore
       (Employees contribution ₹802.00 crore and Government contribution ₹1,122.80 crore)
       for the period 2020-21 against which an amount of ₹1,901.76 crore was transferred to
       the designated authority (NSDL) for further investment as per the provisions of the
       scheme. Further, out of previous years’ balance of ₹390.97 crore to be transferred to
       NSDL, ₹75.05 crore was transferred during 2020-21. Resultantly, the balance amount
       of ₹338.96 crore (previous years’ balance ₹315.92 crore and current years’ balance
       ₹23.04 crore) is yet to be transferred to NSDL. Thus, the current liability stands
       deferred to future years.
2.     Under different Major Heads, departments of the State Government had drawn
       ₹4,834.28 crore from Government accounts against 6,308 Abstract Contingent (AC)
       bills during the financial year 2020-21, out of which 1,833 AC bills amounting to
       ₹429.32 crore were drawn in March 2021. Substantial expenditure against AC bills in
       March shows that the drawal was primarily to exhaust the budget provisions and
       reveals inadequate budgetary control.
       In addition to this, 20,196 AC bills amounting to ₹8,625.43 crore drawn up to
       2019-20 were also outstanding as on 31 March 2021. Thus, a total of 26,504 AC bills
       amounting to ₹13,459.71 crore were outstanding as on 31 March 2021. Advances
       drawn and not accounted for increased the possibility of wastage/ misappropriation.
3.     During the year 2020-21, 608 Utilisation Certificates amounting to ₹15,911.62 crore,
       which had become due, were not submitted by the bodies and authorities of the State
       against the grant-in-aid provided by Government of Bihar. Therefore, there is no
       assurance that the amount of ₹15,911.62 crore has actually been incurred during the
       financial year for the purpose for which it was sanctioned/authorised.
       In addition to this, 3,278 UCs amounting to ₹76,775.69 crore due for submission up to
       2019-20 were also outstanding as on 31 March 2021. Thus, a total of 3,886 UCs
       amounting to ₹92,687.31 crore were due for submission as on 31 March 2021.
       High pendency of UCs is fraught with risk of misappropriation of fund and
       fraudulence. The major defaulting departments are Panchayati Raj Department
       (₹26,922.39 crore), Education Department (₹19,212.69 crore) and Social Welfare
       Department (₹10,941.87 crore).



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4.     Migration of 10 Personal Deposit Accounts (PD) from Comprehensive Treasury
       Management Information System (CTMIS) to Comprehensive Financial Management
       System (CFMS) are pending in which an amount of ₹1.54 crore is lying. No treasury
       office/administrator had furnished information regarding refund of the unspent balance
       to the Consolidated Fund as reduction of expenditure under the concerned service
       head. As per CFMS data, ₹3,811.33 crore was lying in PD accounts at the end of
       March 2021.
5.     Over the last several years, Government of Bihar has been transferring amounts from
       Consolidated Fund to Public Accounts (Deposit accounts specifically), by debiting
       revenue and capital Major heads of accounts. The amount so transferred are taken as
       expenditure for the year in the accounts when actual expenditure may or may not have
       occurred during the year. In respect of amounts transferred over the years by depicting
       capital expenditure, deposit accounts, as on 31 March 2021, retain an accumulated
       amount of ₹28,573.60 crore. Trend analysis revealed that fund booked under capital
       expenditure transferred to Major Head 8448 ranges from 50 per cent to 92 per cent
       during last five years, which is significant.
6.     Government provided budgetary support (equity, loans, grants and subsidies) and
       accepted liability (guarantee) of ₹20,145.84 crore to 33 State Public Sector
       Undertakings during the period for which their accounts were in arrear as on 31 March
       2021. These PSUs have not finalised their accounts for the last one to 44 years in
       violation of provisions of the Companies Act/Acts of the respective Statutory
       Corporations/Public Sector Undertakings.
       I am therefore, unable to discharge my responsibilities with regard to the certification
       of accounts of these PSUs as required under the CAG’s (DPC) Act 1971, the
       Companies Act and Acts of respective statutory corporations.

       The audit observations on above issues have been detailed in the State Finances Audit
Report for the year ended 31 March 2021.




Date : 15 December 2021                              (Girish Chandra Murmu)
Place : New Delhi                            Comptroller and Auditor General of India




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