Syllabus: GS2 /Governance
Context
- The Comptroller and Auditor General (CAG) has highlighted serious irregularities in the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and utilisation of District Mineral Foundation Trust (DMFT) funds in Chhattisgarh.
Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)
- Launched: In 2015 by the Ministry of Mines.
- Objective: To ensure that mining-related revenues are utilised for the socio-economic development and welfare of mining-affected people and areas.
- Funding Mechanism: Implemented through District Mineral Foundation Trusts (DMFTs), which receive mandatory contributions from mining leaseholders under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
- Focus Areas: Drinking water supply, healthcare, education, skill development, women and child welfare, environmental restoration, sustainable livelihood generation, infrastructure in mining-affected regions.
Major Findings of the CAG Audit
- Dilution of PMKKKY’s Core Objective: Under PMKKKY, DMFT funds are meant only for people and villages directly or indirectly affected by mining activities.
- Chhattisgarh DMFT Rules, 2015 expanded the definition of “affected people” beyond the intended mining-affected population.
- Benefits were extended to all residents of mining districts without clear eligibility criteria.
- Large Number of Mining-Affected Villages Left Uncovered: nearly 44% (754 out of 1,734) directly affected villages remained uncovered.
- Expenditure on Non-Priority Works: DMFT funds were diverted towards activities outside PMKKKY priorities, including beautification projects, renovation of government offices etc.
- Absence of Scientific Planning: The audit found that no Master Plans, no Vision Documents, and no Annual Development Plans were prepared before spending large amounts of DMFT funds.
- Delay in Identification of Mining-Affected Areas: Identification of affected villages was delayed by 5 months to 5 years.
Comptroller and Auditor General of India (CAG)
- The CAG is the supreme audit authority of India, responsible for auditing government accounts and ensuring accountability in public finance management.
- Articles 148 to 151 of the Indian Constitution provide the framework for the appointment, duties, and reporting structure of the CAG.
- The Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, determines the CAG’s service conditions and prescribes the duties and powers of their office.
Duties and responsibilities of CAG
- Audits expenditure from the Consolidated Fund of India, states, and union territories with Legislative Assemblies.
- Audits expenditure from the Contingency Fund and Public Account of India and those of the states.
- Audits transactions related to debt, sinking funds, deposits, advances, suspense accounts, and remittance business with Presidential approval.
- Audits accounts of any authority if requested by the President or Governor (e.g., local bodies).
Audits Reports Submitted by CAG to the President of India
- Comptroller and Auditor General (CAG) of India submits three audit reports to the President of India (Article 151).
- Audit report on appropriation accounts: This report shows how the legislature-granted money was allocated to different heads of expenditure and grants. It also verifies if the money was spent for the intended purpose.
- Audit report on finance accounts: This report shows the annual receipts and expenditures of the country.
- Audit report on public undertakings: This report covers the finances and expenditures of various Public Sector Undertakings (PSUs).
- After receiving the reports, the President lays them before both houses of Parliament. The Public Accounts Committee (PAC) then examines the reports and submits its findings to Parliament.
Source: IE
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