Bhubaneswar: The latest report of State Government’s accounts that showed savings of Rs 6108.47 crore for the year 2010-11 is mainly due to slow programme implementation and surpluses in the revenue account.

A report by Comptroller Auditor General (CAG) stated that gross savings of Rs 6536.98 crore was offset by excess expenditure of Rs 428.51 crore and said that the excess expenditure needs regularisation under Article 205 of the Constitution.

Besides, it observed that parking of funds in personal deposit (PD) accounts badly affected the transparency of the State accounts that resulted in inflating the revenue expenditure and locking up resources, which could have been utilised somewhere else for development. It asked the Government to take suitable steps for closure of PD accounts and transfer of the funds parked there to the consolidated fund of India, as such practises greatly eroded budgetary and legislative control over the State’s finances.

The CAG observed that State Government’s compliance with various rules, procedures and directives relating to utilisation of funds was unsatisfactory.

The CAG asked the State Government to speed up departmental inquries to bring the defaulter to book and said the State Government should strengthen internal control in all organisations in order to prevent these situations in future.