The ambitious irrigation projects and the expenditure for these projects have earned the ire of the Comptroller Auditor General (CAG). The latest CAG report has questioned the Telangana government as to how it would pool up funds for these long-pending projects
The CAG pointed out that the total expenditure for the 20 pending projects is around 187 lakh crore and that Rs 1.00 lakh crore have already been spent. It said that the remaining works need another Rs 87 lakh crore. The State Government also needs another 19000 crore for six new projects. Thus the state government needs 1.78 lakh crore in the coming seven years. In addition, the state also needs another 78 thousand crore to repay the already taken loans. Where will the state government get these funds, the CAG asked.
Most damning aspect of the CAG report is that the cost-to-benefit ratio is very adverse. That is the government is investing more but the returns from these projects are very less. Thus, the return on investment is very low. It pointed out that the projected returns and benefits were not coming from these projects. The CAG report would prove to be another weapon for the Opposition now.
The CAG pointed out that the total expenditure for the 20 pending projects is around 187 lakh crore and that Rs 1.00 lakh crore have already been spent. It said that the remaining works need another Rs 87 lakh crore. The State Government also needs another 19000 crore for six new projects. Thus the state government needs 1.78 lakh crore in the coming seven years. In addition, the state also needs another 78 thousand crore to repay the already taken loans. Where will the state government get these funds, the CAG asked.
Most damning aspect of the CAG report is that the cost-to-benefit ratio is very adverse. That is the government is investing more but the returns from these projects are very less. Thus, the return on investment is very low. It pointed out that the projected returns and benefits were not coming from these projects. The CAG report would prove to be another weapon for the Opposition now.