‘Non-submission fraught with risk of mis-utilization’
Says 18-month deadline routinely violated
Mohinder Verma
JAMMU, Apr 3: Flagging serious financial irregularities in the Union Territory of Jammu and Kashmir, the Comptroller and Auditor General (CAG) has exposed a deepening crisis in the submission of the Utilization Certificates (UCs) revealing that over 3000 certificates involving a staggering Rs 7539 crore remain pending across multiple years.
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Further, the audit has pointed out that more than Rs 3200 crore worth of UCs fell due in 2024-25 alone underscoring the scale of the backlog and weak financial oversight. Moreover, mandatory 18-month deadline for submission of the UCs is being routinely violated, eroding accountability and casting doubt on whether the public funds have been utilized for the intended purposes.
In its report on the Union Territory Finances for the year 2024-25, the CAG has pointed out that the Government of J&K has not framed revised rules relating to drawl of Grants-in-Aid and submission of Utilization Certificates thereof.
However, as per the erstwhile State of J&K (pre-reorganization) Financial Code Volume-I, UCs in respect of Grants-in-Aid received by the grantee should be furnished to the authority that sanctioned it within 18 months from the date of receipt of grant or before applying for a further grant on the same subject, whichever is earlier.
“Utilization Certificates outstanding beyond the specified period indicate absence of assurance on utilization of the grants for indented purposes and the expenditure shown in the accounts cannot be treated as final”, the audit said while disclosing that during the year 2024-25, UCs amounting to Rs 3,223.07 crore became due for submission (Grant-in-Aid bills drawn up to 09/2023) to the UT Government.
In addition to that, UCs amounting to Rs 5,231.09 crore were outstanding at the beginning of the year. During the year, outstanding UCs amounting to Rs 4,349.08 crore were cleared, leaving outstanding 1,395 number of UCs amounting to Rs 4,105.08 crore as on 31st March 2025. Further, 1,681 number of UCs amounting to Rs 3,434.42 crore pertaining to erstwhile State of J&K were outstanding as on 31st March 2025.
The other significant pendency includes—Rs 1,492.52 crore (276 UCs) for 2024-25; Rs 1,376.66 crore (449 UCs) for 2022-23; Rs 1,075.50 crore (334 UCs) for 2023-24. Even older dues continue to linger, including cases dating back prior to 2019-20, indicating systemic weaknesses in financial monitoring, the CAG said.
The five major defaulting departments are Education, Health and Medical Education, Power Development, Housing and Urban Development and Agriculture.
The audit has cautioned that non-submission of Utilization Certificates undermines the very basis of financial accountability, as expenditure shown in Government accounts cannot be treated as final without confirmation that funds were used for intended purposes.
It warned that such lapses are fraught with the risk of mis-utilization and stressed that the Government should monitor this aspect closely and hold the persons concerned accountable for submission of the UCs in a timely manner.
The findings of the supreme audit institution of the country has exposed not just administrative inefficiency but a deeper governance deficit, where thousands of crores of public money remain outside the ambit of verified utilization-raising serious questions about transparency, oversight, and fiscal discipline in the Union Territory.
Turning to Abstract Contingent Bills, the CAG has pointed out that the UT of J&K has not revised codal provisions for drawl of Abstract Contingent (AC) Bills and their settlement. However, Financial Code Volume-I of the erstwhile State of J&K envisages that when it is considered necessary to draw money from the Treasury for contingent expenditure of which vouchers cannot be readily obtained before payment, Drawing and Disbursing Officers (DDOs) are authorised to draw sums of money through AC bills.
In terms of the erstwhile State of Jammu and Kashmir (pre re-organization) Financial Code, DDOs are required to present Detailed Countersigned Contingent (DCC) Bills containing vouchers in support of final expenditure within two months from the date on which the advance was drawn.
As against 3,451 AC Bills amounting to Rs 25,127.97 crore outstanding as on 31st March 2024, there were 3,068 AC Bills amounting to Rs 15,607.21 crore outstanding as on 31st March 2025. The outstanding AC Bills as on 31st March 2025 included 1,748 AC Bills amounting to Rs 4,716.03 crore drawn prior to 30th October 2019 by the Government of erstwhile State of Jammu and Kashmir and 1,320 AC Bills amounting to Rs 10,891.18 crore drawn thereafter by the Government of UT of Jammu and Kashmir.
The bifurcation of these outstanding AC Bills is yet to be done between the successor Union Territories— Union Territory of Jammu and Kashmir and Union Territory of Ladakh, the CAG said and observed that out of 94 AC Bills drawn during 2024-25, 24 AC Bills amounting to Rs 73.01 crore (11.25 per cent) were drawn in March 2025, out of which no AC Bills were adjusted up to 31st March 2025.
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