Our Correspondent
Kohima | February 21
Under National Pension system, the government failed to transfer Rs 62.01 crore (Short contribution Rs 28.57 crore and short transfer Rs 33.44 crore) to the NSDL and, incorrectly used the funds that belong to its employees and created uncertainty in respect of benefits due to the employees and, thus leading to possible failure of the scheme itself.
This was stated in the State Finances Audit Report of the Comptroller and Auditor General of India (CAG) for the year ended 31 March, 2019, which was tabled in the just concluded 7th Session of 13th Nagaland Legislative Assembly (NLA) here.
The report stated that the state government employees appointed on or before 01 January 2010 are covered under National Pension System (NPS) which is a Defined Contributory Pension Scheme.
In terms of the State, employees contribute 10 per cent of their basic pay plus Dearness Allowances and the state government is required to make matching contribution.
The State government collected Rs 86.74 crore from employees as contribution towards NPS and contributed only Rs 58.17 crore as government’s share towards the state.
The report stated that the Government did not discharge its statutory liability as it failed to contribute Rs 28.27 crore as Government’s matching share under NPS.
Further, against the total collected funds of Rs 144.91 crore, the government transferred Rs 111.47 crore only to the Designated Authority NSDL and did not transfer Rs 33.44 crore to NSDL for further investment as per the provision of the scheme.
Thus, the report stated, there as a short transfer of Rs 62.01 crore (Rs 33.44 crore not transferred +Rs 28.57 crore short contribution) to the NSDL and the current liability on the amount not transferred to NSDL, incorrectly used the funds that belongs to its employees and created uncertainty in respect of the beneficiaries due to the employees affected/avoidable financial liability of government in future; thus leading to possible failure of the scheme itself.
In recommendations, the CAG report stated that Under National Pension Scheme System, the State government should ensure that employees’ contributions are fully deducted, fully matched by the government contributions and fully transferred to NSDL/Trustee bank in a timely manner to avoid interest liability.
390 projects lying incomplete
The Report also stated that as on 31 March 2019, 390 projects involving an expenditure of Rs 1252.87 crore were incomplete.
Out of those, two projects involving an expenditure of Rs 10.47 crore, which were taken up under PWD (Roads & Bridges) had been suspended.
The report stated that the information regarding target year of completion in respect of 67 out of 390 projects was not furnished by the departments, though called for.
The remaining 323 projects were stipulated to be completed on or before 31 March 2019, and remained incomplete as of December 2019.
The report stated that the possibilities of the incomplete projects being abandoned cannot be ruled out as many of the projects are over five years beyond scheduled completion date.
Project cost in respect of 14 incomplete projects was revised from Rs 200.90 crore to Rs 339.46 crore.
Increase in cost was related to projects under PWD (Roads & Bridges- Rs 60.50 crore), Geology & Mining (Rs 27.41 crore), State Council of Educational Research and Training (Rs 0.69 crore), Transport (Rs 5.09 crore), Veterinary and Animal Husbandry (Rs 0.14 crore), Youth Resources and Sports (Rs 12.02 crore), Agriculture (Rs 0.01 crore), Social Welfare (Rs 7.98 crores) and Forest (Rs 24.72 crore).
The Report stated that blocking of funds on incomplete projects/works beyond their scheduled date of completion, adversely impinged on the quality of expenditure and deprived the state of intended benefits for prolonged periods.
Further, the funds borrowed for implementation of these projects during the respective years proved ineffectual with the state having to bear additional burden for debt servicing and interest liabilities.
“Effective steps need to be taken to complete all these projects without further delay,” the report stated. It recommended that the government should thoroughly examine the reasons for their delay and take corrective action to complete them so that the desired benefits of the project reach the targeted groups.
