State Finances Audit Report

of the
Comptroller and Auditor General of India

for the year ended March 2023

Government of Tamil Nadu

Report No. 2 of the year 2024
 State Finances Audit Report
of the
Comptroller and Auditor General of India

for the year ended March 2023

Government of Tamil Nadu

Report No. 2 of the year 2024
 TABLE OF CONTENTS

Paragraph Page
Preface ix
Executive Summary xi
CHAPTER I - OVERVIEW
Introduction 1.1 1
Profile of Tamil Nadu 1.2 1
Gross State Domestic Product and Gross State Value Added of
1.2.1 1
the State
Basis and Approach to State Finances Audit Report 1.3 4
Overview of Government Account Structure and
1.4 5
Budgetary Processes
Budgetary Processes 1.5 8
Snapshot of Finances 1.6 9
Snapshot of Assets and Liabilities of the Government 1.7 10
Fiscal Indicators 1.8 11
Deficits and Total Debt after examination in audit 1.9 14
Post audit Analysis 1.9.1 15
Trends in fiscal liabilities 1.9.2 15
CHAPTER II - FINANCES OF THE STATE
Summary of fiscal transactions in 2022-23 vis-à-vis 2021-22 2.1 17
Sources and Application of Funds 2.2 19
Resources of the State 2.3 20
Receipts of the State 2.3.1 21
State’s Revenue Receipts 2.3.2 21
Trends and growth of Revenue Receipts 2.3.2.1 22
State’s Own Resources 2.3.2.2 23
Transfers from the Centre 2.3.2.3 25
Capital receipts 2.3.3 28
State’s performance in mobilization of resources 2.3.4 29
Application of resources 2.4 30

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Paragraph Page
Growth and composition of expenditure 2.4.1 30
Revenue Expenditure 2.4.2 32
Major changes in Revenue Expenditure 2.4.2.1 33
Committed Expenditure 2.4.2.2 35
Avoidable Expenditure under National Pension System 2.4.2.3 37
Subsidies 2.4.2.4 39
Recoveries under ‘Minor Head – 911’ 2.4.2.5 40
State Finance Commission-Non-sharing of GST compensation
2.4.2.6 41
with Local Bodies
Capital Expenditure 2.4.3 42
Major changes in Capital Expenditure 2.4.3.1 43
Quality of capital expenditure 2.4.3.2 44
Expenditure priorities 2.4.4 47
Object head wise expenditure 2.4.5 47
Public Account 2.5 48
Net Public Account Balances 2.5.1 48
Reserve Funds 2.5.2 50
Consolidated Sinking Fund 2.5.2.1 50
State Disaster Response Fund 2.5.2.2 50
State Disaster Mitigation Fund 2.5.2.3 52
Guarantee Redemption Fund 2.5.2.4 52
Public Liability Management 2.6 52
Liability profile: Components 2.6.1 53
Off Budget Borrowings 2.6.1.1 56
Composition of fiscal deficit and financing pattern 2.6.1.2 57
Debt profile: Maturity and Repayment 2.6.2 59
Debt Sustainability Analysis (DSA) 2.7 60
Utilisation of borrowed funds 2.7.1 64
Status of Guarantees – Contingent Liabilities 2.7.2 65
Management of Cash Balances 2.7.3 65

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 Table of contents

Paragraph Page
Conclusion 2.8 68
Recommendations 2.9 68
CHAPTER III - BUDGETARY MANAGEMENT
Introduction 3.1 69
Budget Process 3.2 69
Gender Budgeting 3.3 71
Overview of Gender Budget Statement 2022-23 3.3.1 71
Analysis of Gender Budget Statement 2022-23 3.3.2 72
Withdrawal of provision under Part A schemes 3.3.3 73
Other audit observations 3.3.4 74
Appropriation Accounts 3.4 75
Summary of total provisions, actual disbursement and
3.4.1 75
savings / excess during 2022-23
Charged and Voted disbursements 3.4.2 76
Budget marksmanship 3.4.3 76
Aggregate Expenditure Outturn 3.4.3.1 76
Audit of Appropriation 3.5 77
Comments on integrity of budgetary and accounting process 3.5.1 77
Expenditure incurred without authority of law 3.5.1.1 77
Drawal of funds to avoid lapse of budget grant 3.5.1.2 78
Misclassification of Expenditure 3.5.1.3 79
Unnecessary or excessive Supplementary grant 3.5.1.4 79
Unnecessary/excess/insufficient re-appropriation of funds 3.5.1.5 80
Provision met only through re-appropriation of funds but ‘nil’
3.5.1.6 83
expenditure
Unspent amount and surrendered appropriations and/or large
3.5.1.7 83
savings / surrenders
Excess expenditure and its regularisation 3.5.1.8 87
Comments on effectiveness of budgetary and accounting
3.5.2 88
process

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Paragraph Page
Budgetary projection and gap between expectations and
3.5.2.1 88
actuals
Major policy pronouncements in budget and their actual
3.5.2.2 92
funding for ensuring implementation
Rush of Expenditure 3.5.2.3 93
Advances from the Contingency Fund 3.6 94
Outcome of review of selected grants 3.7 95
Higher Education Department 3.7.1 95
Allocation and Expenditure 3.7.1.1 95
Rush of expenditure under Higher Education Department 3.7.1.2 98
Tourism – Art and Culture (Tourism, Culture and Religious
3.7.2 98
Endowments Department
Allocation and Expenditure 3.7.2.1 98
Persistent savings under capital heads 3.7.2.2 99
Conclusion 3.8 101
Recommendations 3.9 102
CHAPTER IV- QUALITY OF ACCOUNTS AND FINANCIAL REPORTING
PRACTICES

Loans of State Government not being credited to the

4.1 103
Consolidated Fund

Non-discharge of liability in respect of interest towards

4.2 104
interest bearing deposits

Funds transferred directly to State Implementing Agencies

4.3 104
(SIAs)

Tax on electricity kept outside consolidated fund of the

4.4 106
state

Delay in furnishing of Utilisation Certificates 4.5 107

Recording of Grantee Institution as “Others” 4.6 108
Non-Adjustment of Temporary Advances 4.7 109
Personal Deposit Accounts 4.8 110

Accumulation of unencashed cheques and return

4.9 111
Electronic Clearance Service
Indiscriminate use of Minor head ‘800’ 4.10 112

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 Table of contents

Paragraph Page

Outstanding balances under Suspense and Debt, Deposit

4.11 115
and Remittance (DDR) heads
Non-reconciliation of Departmental figures 4.12 115
Reconciliation of Cash balances 4.13 116
Impact on Post Audit Analysis of certain transactions on
4.14 118
fiscal indicators during 2022-23
Compliance with Accounting Standards 4.15 118
Non-submission/ Delay in submission of accounts 4.16 119
Pendency in placement of Separate Audit Report of the
4.17 120
Tamil Nadu Legal State Authority in the State Legislature
Misappropriation, Losses and Thefts 4.18 120
Follow up on State Finances Audit Report 4.19 122
Conclusion 4.20 122
Recommendations 4.21 123
CHAPTER V- STATE PUBLIC SECTOR UNDERTAKINGS
Definition of Government Companies 5.1 125
Mandate of Audit 5.2 125
PSUs and their contribution to the GSDP of the State 5.3 125
Investment in PSUs and Budgetary support 5.4 126
Equity holding and Loans in PSUs 5.4.1 126
Disinvestment, Restructuring and Privatisation 5.4.2 127
Power Sector Companies 5.4.3 127
Returns from PSUs 5.5 128
Profit earned by PSUs 5.5.1 128
Dividend paid by PSUs 5.5.2 129
Debt Servicing 5.6 129
Interest Coverage Ratio 5.6.1 129
Performance of PSUs 5.7 130
Return on Capital Employed 5.7.1 130
Return on Equity by PSUs 5.7.2 130
PSUs incurring losses 5.8 131
Losses incurred 5.8.1 131

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Paragraph Page
Erosion of Capital in PSUs 5.8.2 132
Audit of PSUs 5.9 132
Appointment of statutory auditors of PSUs by C&AG 5.10 132
Submission of accounts by PSUs 5.11 133
Need for timely submission 5.11.1 133
Timeliness in preparation of accounts by PSUs 5.11.2 133
CAG’s oversight – Audit of accounts and supplementary
5.12 134
audit
Financial reporting framework 5.12.1 134
Audit of accounts of Government Companies by statutory
5.12.2 134
auditors
Supplementary Audit of accounts of Government Companies 5.12.3 135
Result of C&AG’s oversight role 5.13 135
Audit of accounts of Government Companies under Section 143
5.13.1 135
of the Companies Act, 2013
Revision of Auditors Report 5.13.2 135
Significant comments of the C&AG issued as supplement to
5.13.3 135
the statutory auditors’ reports on Government Companies
Management letters 5.14 136
Conclusion 5.15 136
Recommendations 5.16 137

APPENDICES

Appendix Reference to
Subject Page
No. Paragraph
1.1 State Profile 1.2 139
1.2
Structure and Form of Government Accounts 1.4 140
Part A
Part B Layout of Finance Accounts 1.4 140
1.3 Methodology adopted for assessment of fiscal
1.4 142
Part A position
Part B The Tamil Nadu Fiscal Responsibility Act, 2003 1.4 142
Time series data on the State Government
2.1 2.1 143
finances

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 Table of contents

Appendix Reference to
Subject Page
No. Paragraph
Delay in release of funds to Single Nodal
2.2 2.3.2.3 145
Agency (SNA)
Recoveries of one crore and above under
2.3 2.4.2.5 146
‘Minor Head – 911’
Differences in balances between Statement 16
2.4 2.4.3.2 (i) 148
and Statement 19
Token provision given and withdrawn under
3.1 3.3.4 150
Gender Budgeting under Part A
Cases where Supplementary provision (₹ 50
3.2 (a) lakh or more in each scheme) 3.5.1.4 151
proved unnecessary
Excess Supplementary provision (₹ 10 crore or
3.2 (b) 3.5.1.4 153
more in each scheme)
Cases where Supplementary provision (₹ 50
3.3 3.5.1.4 155
lakh or more in each scheme) is inadequate
3.4 Excessive/Insufficient re(-) appropriation of funds 3.5.1.5 158
Injudicious re-appropriations-Unnecessary
3.5 3.5.1.5 162
provision by re-appropriation
Provision more than ₹ 100 crore withdrawn by
3.6 3.5.1.5 164
re-appropriation and with ‘NIL’ Expenditure
Withdrawal of entire Provision towards interest 3.5.1.5 and
3.7 166
liability under Major Head ‘8342’ 4.2
Expenditure incurred without Final Modified
3.8 3.5.1.5 167
Appropriation
Injudicious re-appropriations – Provisions made
in first re-appropriation and withdrawn in
3.9 3.5.1.5 169
second re-appropriation where expenditure is
‘Nil’
3.10 Grants in which savings more than ₹ 100 crore 3.5.1.7 (a) 171
Cases of surrender of funds in excess of ₹ 10
3.11 3.5.1.7 (b) 173
crore on 31 March 2023
Cases where savings of ₹ one crore and above
3.12 3.5.1.7 (b) 175
not surrendered
Surrender more than savings under the
3.13 3.5.1.7 (b) 176
Grant/Appropriation
List of Grants having Persistent Savings during
3.14 3.5.1.7 (d) 177
2018-2023
Rush of Expenditure (100% Expenditure in March
3.15 3.5.2.3 179
where provision more than one crore)
Details of Contingency Fund advances
3.16 3.6 183
sanctioned during the year
4.1 List of outstanding Utilisation Certificates 4.5 185

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix Reference to
Subject Page
No. Paragraph
Expenditure under Minor Head ‘800 – Other
4.2 4.10 186
expenditure’
Receipts under Minor Head ‘800 – Other
4.3 4.10 187
receipts’
List of bodies and authorities, the accounts of
4.4 which had not been received as at the end of 4.16 188
2022-23
Status of placement of Separate Audit Report
4.5 4.17 195
(SAR) in the State Legislature
Department/category-wise details of loss to
4.6 Government due to theft, shortage and 4.18 197
misappropriation
List of Public Sector Undertakings under
5.1 5.3 198
jurisdiction of Audit in Tamil Nadu
Details of PSUs whose Net worth has eroded as
5.2 5.8.2 201
per their latest finalised accounts
Glossary of terms and abbreviations used in
- 203
the Report

viii
 PREFACE
This Report has been prepared for submission to the Governor of Tamil Nadu under
Article 151 of the Constitution.
Chapter I of this report describes the basis and approach to the Report and the
underlying data provides an overview of structure of government accounts,
budgetary processes, macro-fiscal analysis of key indices and State’s fiscal position
including the deficits/ surplus for the year ended 31 March 2023.
Chapter II provides a broad perspective of the finances of the State, analyses the
critical changes in major fiscal aggregates relative to the previous year, overall trends
during the period from 2018-19 to 2022-23, debt profile of the State and key Public
Account transactions, based on the Finance Accounts of the State.
Chapter III is based on the Appropriation Accounts of the State and reviews the
appropriations and allocative priorities of the State Government and reports on
deviations from Constitutional/codal provisions relating to budgetary management.
Chapter IV comments on the quality of accounts rendered by various authorities of
the State Government and issues of non-compliance with prescribed financial rules
and regulations by various departmental officials of the State Government.
Chapter V discusses the financial performance of State Public Sector Undertakings
and the impact of comments issued as a result of supplementary audit of the
Financial Statements of these State Public Sector Undertakings.
The Reports containing the findings of Performance Audit and audit of transactions
in various departments and observations arising out of audit of Statutory
Corporations, Boards and Government Companies and the Report containing
observations on Revenue Receipts are presented separately.

ix
EXECUTIVE
SUMMARY
 EXECUTIVE SUMMARY

About the Report

This Report of the CAG of India is on the State Finances for the year 2022-23.
It provides an overview of the finances, budgetary management and quality of
accounts, financial reporting practices and other matters relevant to State
Finances.

This executive summary highlights the contents of this report and through
snapshots of the important figures and aspects, provides insight into fiscal
sustainability, performance against the budget intent, revenue and expenditure
projection, the reasons for variations and its impact.

Gross State Domestic Product (GSDP) (at current prices) grew at an average
growth rate of 10.16 per cent from ₹16,30,209 crore in 2018-19 to
₹23,64,514 crore in 2022-23. Budget Outlay of the State grew at an average
growth rate of 10.85 per cent from ₹2,67,993 crore in 2018-19 to ₹3,94,256
crore in 2022-23.

There was 14.16 per cent growth in GSDP over 2021-22. The revenue receipts
grew at 17.47 per cent and the percentage of revenue receipts over GSDP
improved from 10.02 per cent in 2021-22 to 10.31 per cent in 2022-23. The
tax revenue increased by 23.93 per cent during the period and the State’s own
tax revenue increased by 22.27 per cent. The total expenditure (revenue
expenditure, capital expenditure and loans and advances) of the State of Tamil
Nadu increased from ₹2,94,682 crore in 2021-22 to ₹3,26,755 crore in
2022-23, an increase of 10.88 per cent. Of this, revenue expenditure showed
10.21 per cent increase from 2021-22. Revenue deficit decreased from
₹46,538 crore to ₹36,215 crore registering 22 per cent decrease over 2021-22,
while fiscal deficit increased marginally from ₹81,835 crore in 2021-22 to
₹81,886 crore in 2022-23 increasing by 0.06 per cent.

Receipt-Expenditure Mismatch

The continuous mismatch between receipts and expenditure indicates rising

fiscal stress. The State has different sources of receipts such as State Own Tax
Revenue, Non-tax Revenue, Devolution of States’ share in taxes, Grants in aid
and transfers from the Union Government and non-debt capital receipts. The
State Government’s expenditure includes expenditure on revenue accounts as
well as capital expenditure (assets creation, loans and advances, investments,
etc).

From 2018-19 to 2022-23, revenue receipts grew from ₹1,73,741 crore to

₹2,43,749 crore, with an average annual growth rate of 11.13 per cent. Capital
receipts increased from ₹54,850 crore to ₹1,02,182 crore during this period.
The share of Grants-in-aid in revenue receipts marginally rose from 13.45
per cent in 2018-19 to 15.48 per cent in 2022-23. The State Government

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

received ₹15,270 crore as Central share for the Centrally Sponsored Schemes
(CSSs) in the year.

Revenue expenditure is incurred to maintain the current level of services and

payment for the past obligation. As such, it does not result in any addition to
the State’s infrastructure and service network. Between 2018-19 and 2022-23,
revenue expenditure increased from ₹1,97,201 crore (12.10 per cent of GSDP)
to ₹2,79,964 crore (11.84 per cent of GSDP). It consistently made up a
significant portion (86.50 to 87.65 per cent) of the total expenditure during this
period, growing at an average annual rate of 86.50 per cent.

Result of expenditure beyond means

The gap between the revenue receipt and revenue expenditure results in
revenue deficit. The revenue deficit of the State increased to ₹36,215 crore
(1.53 per cent of GSDP) in the current year from ₹ 23,459 crore (1.44 per cent
of GSDP) in the year 2018-19.

The State Government spent ₹39,530 crore only on capital account. This was
12.10 per cent of the total expenditure in the year 2022-23. Capital
expenditure was 39 per cent of the total borrowings. Thus, the borrowed funds
were being used mainly for meeting current consumption and repayment of
borrowings instead of capital creation/development activities.

The gap between the total expenditure and total non-debt receipt of the State
results in fiscal deficit. The fiscal deficit of the State increased to
₹81,886 crore (3.46 per cent of GSDP) in 2022-23 from ₹ 47,335 crore
(2.90 per cent of GSDP) in 2018-19.

Under the revenue expenditure, the quantum of committed expenditure

constitutes the largest share. Committed expenditure has the first charge on the
resources and consists of interest payments, expenditure on salaries and wages
and pensions. Committed expenditure on interest payments, salaries and
pensions constituted 50-56 per cent of revenue expenditure during 2018-19
(56%) and 2022- 2023 (52%). The Committed expenditure increased at an
average rate of 9.99 per cent i.e. from ₹1,09,573 crore in 2018-19 to
₹1,45,306 crore in 2022-23 {an increase of 14.85 per cent over 2021-22
(₹1,26,523 crore)}.

In addition to the committed expenditure, inflexible expenditure decreased

from 18.24 per cent to 16.27 per cent of revenue expenditure during 2018-19
to 2022-23. The inflexible expenditure increased from ₹42,552 crore in
2021-22 to ₹45,541 crore in 2022-23 registering an increase of 7.02 per cent.

xii
 Executive Summary

Taken together, the committed and inflexible expenditure in 2022-23 was

₹1,90,847 crore; 68 per cent of the revenue expenditure. The upward trend on
committed and inflexible expenditure leaves the Government with lesser
flexibility for other priority sectors and capital creation.

Subsidies constitute major portion of the non-committed expenditure

Within the non-committed expenditure, there is an increasing trend of

subsidies, which increased from ₹18,922 crore in 2018-19 to ₹29,559 crore in
2022-23 i.e., from 9.60 per cent of the total revenue expenditure in 2018-19 to
10.56 per cent in 2022-23. Apart from this, the State Government also spent
₹438.87 crore on implicit subsidies.

Off-budget borrowings

The State Government, through Public Sector Undertaking, raised ₹1,184.69

crore as off-budget borrowings, which did not flow into the Consolidated Fund
of the State but are required to be repaid and serviced through budget. In
2022-23, the State Government provided ₹128.11 crore for repayment and
servicing of the off-budget borrowings. This was in addition of the repayment
and interests paid on the borrowings by the Government.

Contingent Liabilities on account of Guarantees

The total outstanding guarantees of the State Government were ₹90,709.22

crore as on 31 March 2023. This constituted 43.72 per cent of the total revenue
receipts of 2021-22 (₹2,07,492.40 crore) and 3.84 per cent of the GSDP
(₹23,64,514 crore at current prices). No guarantee was invoked during the
year.

Fiscal sustainability

Fiscal sustainability is examined in terms of macro-fiscal parameters such as

deficits, level of debt and liabilities, commitments on account of off-budget
borrowings, guarantees, subsidies, etc. So far as revenue and expenditure
mismatch is concerned, one of the important constraints is committed and
inflexible expenditure, which includes salaries and wages, pension payments,
interests, etc. and also other inflexible expenditure such as those arising out of
commitment for centrally sponsored schemes, transfer to reserve funds,
transfer to local bodies, etc.

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

FRBM requirements and compliance with fiscal parameters

The targeted timeline to eliminate revenue deficit and reduce fiscal deficit was
fixed by GoTN from time to time by amending the Tamil Nadu Fiscal
Responsibility Act, 2003. In compliance with the provisions of TNFR
Act,2003, the targets for the period 2022-23 were set. The State had witnessed
Revenue Deficit (₹36,215) during the year whereas the target set was to
achieve revenue surplus by 2023-24. The fiscal deficit as a percentage of
GSDP during 2022-23 stood at 3.46 which is within the projections of
3.5 per cent in Medium Term Fiscal Plan (MTFP). Outstanding liability to
GSDP was 28.64 per cent as against limit of 29.30 per cent. Further, if the
quantum of the off-budget borrowings is included as part of debt, the overall
liability (Includes Public Debt and Public Account Liabilities) of the
Government was 28.73 per cent of the GSDP.

As per the debt stabilisation analysis, the public debt of the Government of
Tamil Nadu had grown at an average rate of 15.86 per cent between
2018-19 and 2022-23. Public debt-GSDP ratio has increased from 11.38 per
cent in 2018-19 to 14.02 per cent in 2022-23.

The DOMAR analysis showed that the Domar gap (g-r) was positive during
the period from 2018-19 and 2022-23, except 2020-21. During the pre-COVID
period i.e 2018-19 and 2019-20, the real growth rate of the GSDP was 7.01
per cent and 3.25 per cent respectively and the Domar gap (expressed as g-r)
remained positive but there was primary deficit in the State. Covid-19 affected
the real growth rate of GSDP during 2020-21 and the Domar gap turned
negative during the year. In the subsequent years (202l-22 and 2022-23), the
Domar gap became positive along with primary deficit, which reflect that
Public Debt as a percentage of GSDP tends towards a stable value and is
therefore sustainable. Depending on the stock of debt, it will either increase or
decrease in time to reach a stable level greater than zero.

Funds to Single Nodal Agency

The State Government received ₹14,137.90 crore being SNA’s Central Share
of CSS Schemes during the year. In compliance with GoI’s directions, as on
31 March 2023, the State Government had transferred ₹13,629.21 crore being
Central Share and corresponding State share of ₹11,311.31 crore to the SNA
accounts. As of 31 March 2023, the amount of unspent amounts lying in the
SNA Accounts was ₹11,453.81 crore. There was delay of 10 to 20 days
beyond 21 days in release of GoI share to SNA in two schemes viz.,
Implementation of Project Tiger and PMAY and 1 to 20 days beyond 40 days
in release of State Government share in two schemes viz National Mission on
Edible Oil – Oil Palm and PMAY.

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 Executive Summary

Budget performance
Aggregate expenditure outturn
Budget performance in terms of budgetary intent and budget implementation is
examined to assess extent to which the aggregate expenditure outturn reflects
the amount originally approved both in terms of excess and saving. In the
Revenue section, deviation in outturn compared with Budget Estimates (BE)
was (-) 0.99 per cent. This was due to deviation up to 25 per cent in 41 grants,
more than 25 per cent and up to 50 per cent in eight grants and more than 50
per cent and up to 100 per cent in six grants respectively. In the Capital
section, deviation in outturn compared with BE was (-) 7.66 per cent. This was
due to deviation up to 25 per cent in 13 grants, more than 25 per cent and up
to 50 per cent in nine grants, more than 50 per cent and up to 100 per cent in
six grants and more than or equal to 100 per cent in 15 grants respectively.
The original provision given under five grants were surrendered and no
expenditure incurred.
It was noticed that supplementary provisions of ₹441 crore during the year
2022-23 in 59 cases under 27 grants (more than ₹50 lakh in each case)
proved unnecessary, as the expenditure did not come up even to the level of
original provisions.
Overall Budget reliability assessment indicates that though the deviations
between the actual expenditure and original budget was less than 10 per cent,
there were deviations up to 25 per cent and even above in different grants.
Moreover, it was also noticed that in several cases, there were supplementary
grants where expenditure was not even up to the original grant. A reliable
budget practice should need to deal with such deviations.
Regularization of Excess over Grants/ Appropriations
The State Government has to get excesses over grants/appropriations
regularised by the State Legislature as per Article 204 and 205 (1) (b) of the
Constitution. Excess expenditure of ₹2,854.07 crore relating to 2014-22 was
yet (September 2023) to be regularised by the State Legislature.
Misclassification in accounts
During the year, capital expenditure of an amount of ₹5.74 crore booked under
the Major Head 5054 was to be transferred to ‘State Infrastructure and
Amenities Fund’. Instead, due to misclassification, the sum of ₹5.74 crore was
transferred from Major Head 2217 to the ‘State Infrastructure and Amenities
Fund’ as ‘Expenditure met from Reserve Fund’. This had resulted in
understatement of Revenue Expenditure to that extent.

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Quality of Accounts & Financial Reporting Practices

Quality of accounts and financial reporting covers items, transactions and
events which relate to gaps in compliance, regularity weaknesses and issues
relating to delay in receipt of those accounting records or adjustment records
which evidence the actual expenditure. It also highlights issues pertaining to
the accounts and financial reporting such as parking of funds outside the
Government accounts, non- or short- discharging of liabilities and
misclassification of transactions and data gaps.
Reconciliation
As per the Tamil Nadu Treasury Rules, all Departments are required to
reconcile their expenditure and receipts with the expenditure booked in the
accounts in the Accountant General Office. The State Government did not
reconcile 5.21 per cent of the total expenditure and 6.14 per cent of the
receipts.
The remaining unreconciled amounts both receipts and expenditure relates to
44 per cent of the CCOs.
Compliance with IGAS
As against the requirements of the Indian Government Accounting Standards
(IGAS), the State Government partly complied with IGAS-3: Loans and
Advances made by the Government. The reconciliation of figures booked
under the loan heads was not completed during 2022-23, subsequent to the
restructuring of loans and advances given by the Government during the year
2018-19. Reconciliation with the State is under process.
Utilisation Certificates against conditional grants
Despite the requirement of submitting Utilisation Certificates (UCs) against
conditional grants within a stipulated time period, 48 outstanding UCs of
₹1,435.43 crore were pending as on 31 March 2023.
Temporary Advance
693 number of temporary advances amounting to ₹296.97 crore drawn by
various DDOs, which remained unadjusted as on 31 March 2023. Out of
which 112 temporary Advances amounting to ₹ 110.73 crore pertained to the
period upto 2021-22.
Funds outside Government Account
It was noticed that TANGEDCO collected ₹5,493.40 crore as Electricity Tax
from consumers but remitted only ₹1,228.79 crore. The amount of electricity
tax collected but not remitted into the consolidated fund as of 31 March 2023
stood at ₹4,264.61 crore.

xvi
 Executive Summary

Working of State Public Undertakings

As on 31 March 2023, there were 102 State Public Sector Undertakings
(PSUs) in Tamil Nadu, including 74 Government Companies (including two
inactive Government Companies), one Statutory Corporation and 27
Government Controlled Other Companies under the audit jurisdiction of the
Comptroller and Auditor General of India (CAG). Audit noticed that the
prescribed timelines regarding submission of Financial Statements were not
adhered to by 16 PSUs whose 22 accounts were in arrears. Out of the total
profit of ₹2,560.42 crore earned by 54 working PSUs, 63.81 per cent was
contributed by three PSUs only. Out of total loss of ₹16,047.99 crore incurred
by 35 working PSUs, loss of ₹9,848.74 crore was incurred by three power
sector PSUs and ₹6,077.86 crore by eight PSUs in Transport sector. The
financial impact of CAG’s comments on the financial statements of PSUs
during the year 2022-23 was as ₹393.52 crore on profitability.
The State Government may impress upon the managements of PSUs to ensure
timely submission of their financial statements. In the absence of finalised
accounts, Government investments in such PSUs remain outside the oversight
of the State Legislature. The State Government may also analyse the reasons
of losses in loss making PSUs and initiate steps to make their operations
efficient and profitable.

xvii
CHAPTER I
OVERVIEW
 CHAPTER I

OVERVIEW

1.1 Introduction

This chapter provides a brief profile of the State and describes the basis and
approach to the Report. The underlying data provides an overview of the
structure of Government Accounts, budgetary processes, macro-fiscal analysis
of key indices and State’s fiscal position including the deficit/surplus.

1.2 Profile of Tamil Nadu

Tamil Nadu, with a geographical area of 1,30,058 Sq. Km is the 11th largest
State in India. It comprises of 38 Districts and 313 Taluks. As per the census
2011, the State’s population was 7.21 crore, making it the seventh largest State
in terms of population. As per population projections for India and States
2011-2036 by National Commission on Population, Ministry of Health &
Family Welfare, the projected population of the State in 2022-23 stands at 7.68
crore. General and financial data relating to Tamil Nadu are provided in
Appendix 1.1.
1.2.1 Gross State Domestic Product and Gross State Value Added of
the State
Gross State Domestic Product (GSDP) is the value of all the goods and services
produced within the boundaries of the State in a given period of time. Growth
of GSDP is an important indicator of the State’s economy, as it denotes the
extent of changes in the level of economic development of the State over a
period of time.
As per the United Nations System of National Accounts of 2008, Gross Value
Added (GVA) is defined as the value of output less the value of intermediate
consumption and is a measure of the contribution to Gross Domestic Product
(GDP) made by an individual producer, industry or sector. Thus, GVA is
considered a better indicator of economic growth compared to GDP and is used
for economic analysis by GoI and international organisations like IMF and
World Bank, as it ignores the impact of taxes and subsidies.
From a policymaker’s perspective, it is vital to have a comparison of the GVA
and GDP data to the nation with the Gross State Value Added (GSVA) and
GSDP data of the State for better analysis and making policy interventions.
Trends in GSVA and GSDP compared to GVA and GDP, respectively are
shown in Table 1.1.

1
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Table 1.1: Trends in GSVA and GSDP compared to the GVA and GDP
(at current prices)
(₹ in crore)
Year 2018-19 2019-20 2020-21 2021-22 2022-23
India
GDP (2011-12 Series) 1,88,99,668 2,01,03,593 1,98,29,927 2,34,71,012 2,72,40,712
Gross Value added (GVA) 1,71,75,128 1,83,81,117 1,81,88,780 2,14,38,883 2,47,42,871
Growth rate of GDP over previous
10.59 6.37 (-) 1.36 18.36 16.06
year (in per cent)
Growth rate of GVA over previous
10.77 7.02 (-) 1.05 17.87 15.41
year (in per cent)
Per capita GDP (in ₹) 1,42,424 1,49,915 1,46,301 1,71,498 1,96,983
Tamil Nadu State
GSDP at current prices (2011-12
16,30,209 17,43,144 17,88,074 20,71,286 23,64,514
Series)
GSVA 14,90,042 16,01,332 16,54,821 19,15,234 21,76,648
Growth rate of GSDP over previous
11.27 6.93 2.58 15.84 14.16
year (in per cent)
Growth rate of GSVA over previous
11.99 7.47 3.34 15.74 13.65
year (in per cent)
Per capita GSDP (in ₹) 2,15,785 2,29,657 2,34,486 2,70,629 3,08,020
(Source: Central Statistical Office (CSO), Ministry of Statistics and Programme implementation, GoI)

The growth rate of the State’s Gross Domestic Product (GSDP) in 2022-23 at
current prices was 14.16 per cent as against India's growth rate of
16.06 per cent. During post Covid period i.e. 2021-22, there was a significant
boost in the growth rate of GSDP, which stood at 15.84 per cent. During the
current year, though the growth rate was 14.16 per cent, which was lesser than
the previous year, it was, however, significantly higher when compared with
2018-19.
The State’s Gross Domestic Product (GSDP) in 2022-23 at current prices was
₹23,64,514 crore and the GDP in 2022-23 at current prices was
₹2,72,40,712 crore. Further, the per capita GSDP of the State for the year
2022-23 was ₹3,08,020 while that of the country was ₹1,96,983.
The trends of GSDP and GSVA for the period from 2018-19 to 2022-23 is
indicated in Exhibit 1.1.

Exhibit 1.1: Growth rate of GSDP vs GSVA (2018-19 to 2022-23)

20
15.74
15.84 14.16 13.65
15 11.27 11.99
(in per cent)

10 7.47
6.93
3.34
5 2.58

0
2018-19 2019-20 2020-21 2021-22 2022-23

Growth rate of GSDP over previous year Growth rate of GSVA over previous year

(Source: Ministry of Statistics and Programme Implementation)

2
 Chapter I - Overview

The year over year of GSVA (YOY growth of GSVA) was more than growth
rate of GSDP for the period from 2018-19 to 2020-21. But during 2021-22 and
2022-23, the growth rate of GSVA was less than growth rate of GSDP.
Changes in sectoral contribution to the GSVA is important to understand the
changing structure of economy. The economic activity is generally divided into
Primary, Secondary and Tertiary sectors, which correspond to the Agriculture,
Industry and Service sectors. The Sectoral contribution to GSVA and Sectoral
growth in GSDP during the period 2018-19 to 2022-23 are depicted in
Exhibits 1.2 and 1.3.

Exhibit 1.2: Change in sectoral contribution to GSVA

(2018-19 and 2022-23)
60 53.72 53.05
50
(in per cent)

40 34.13 34.1
30

20
12.15 12.85
10

0
Agriculture Industry Service
2018-19 2022-23

(Source: Ministry of Statistics and Programme Implementation)

During the five year period, the sectoral contribution of Agriculture Sector had
increased marginally by 0.70 percentage points. There was a reduction of
0.67 percentage points in the Service Sector.
Exhibit 1.3: Sectoral growth in GSDP
(in per cent)
25

20 19.89

15 13.96 14.18 15.51

13.49 13.86
11.81
12.08
11.16
10 9.39
8.17
7.93
5 2.42
2.90 1.44
0
2018-19 2019-20 2020-21 2021-22 2022-23

Agriculture Industry Service

(Source: Ministry of Statistics and Programme Implementation)

3
State Finances Audit Report, Tamil Nadu for the year ended March 2023

From the above exhibit, it is seen that there was a substantial decrease in both
Industry and Agriculture sectors and a marginal decrease in service sector
during the year 2022-23, when compared with the previous year.

1.3 Basis and Approach to State Finances Audit Report

The State Finances Audit Report (SFAR) is prepared and submitted under
Article 151 (2) of the Constitution of India. According to Article 151 (2) of the
Constitution of India, the reports of the Comptroller and Auditor General of
India relating to the accounts of a State are to be submitted to the Governor of
the State, who shall cause them to be laid before the Legislature of the State.
Principal Accountant General (Accounts & Entitlements) prepares the Finance
Accounts and Appropriation Accounts of the State annually, from the vouchers,
challans and initial and subsidiary accounts rendered by the treasuries, offices
and departments responsible for keeping of such accounts functioning under
the control of the State Government, and the statements received from the
Reserve Bank of India. In Tamil Nadu, the Treasuries compile the accounts
from the vouchers (primary compilation) which, along with the vouchers, are
then furnished to Principal Accountant General (A&E) for secondary
compilation. These accounts are audited independently by the Principal
Accountant General (Audit - I) and certified by the CAG.
Finance Accounts and Appropriation Accounts of the State for the year
2022-23 constitute the core data for this report. Other sources include the
following:
 Budget of the State for the year 2022-23, for assessing the fiscal
parameters and allocative priorities vis-à-vis projections, as well as for
evaluating the effectiveness of its implementation and compliance with
the relevant rules and prescribed procedures;
 Results of audit carried out by the Office of the Principal Accountant
General (Audit-I), Tamil Nadu;
 Other data with Departmental Authorities and Treasuries (accounting as
well as MIS),
 GSDP data and other State related statistics; and
 Various audit reports of the CAG of India.
The analysis is also carried out in the context of recommendations of the
Finance Commission (FC), Tamil Nadu State Financial Responsibility and
Budget Management Act (TNFR Act), best practices and guidelines of the
Government of India. An entry conference was held with State Finance
Department on 25 July 2023 and the exit conference was held on 3 November
2023.

4
 Chapter I - Overview

Replies received from the Government during the exit conference have been
incorporated suitably in the report wherever applicable.

1.4 Overview of Government Account Structure and Budgetary

Processes

Government Accounts are defined by the twin principles of Fund based

accounting and functional classification of transactions of the Government.
Fund based accounting system involves sourcing and allocating all receipts and
disbursements to one of the three Funds, viz., Consolidated Fund, Contingency
Fund and Public Account. These Funds are created by the Constitution and
function as instruments of public accountability. The details and purpose of each
of these Funds are as given below:
1. Consolidated Fund of the State (Article 266(1) of the Constitution of
India)
This Fund comprises all revenues received by the State Government, all loans
raised by the State Government (market loans, bonds, loans from the Central
Government, loans from Financial Institutions, Special Securities issued to
National Small Savings Fund, etc.), Ways and Means advances extended by the
Reserve Bank of India and all money received by the State Government in
repayment of loans. No money can be appropriated from this Fund except in
accordance with law and for the purposes and in the manner provided by the
Constitution of India. Certain categories of expenditure (e.g., salaries of
Constitutional authorities, loan repayments etc.) constitute a charge on the
Consolidated Fund of the State (Charged expenditure) and are not subject to
vote by the Legislature. All other expenditure (Voted expenditure) is voted by
the Legislature.
2. Contingency Fund of the State (Article 267(2) of the Constitution of
India)
This Fund is in the nature of an imprest which is established by the State
Legislature by law and is placed at the disposal of the Governor to enable
advances to be made for meeting unforeseen expenditure pending authorisation
of such expenditure by the State Legislature. Expenditure from the Fund is
recouped subsequently by debiting the expenditure to the concerned functional
major head under the Consolidated Fund of the State. The corpus of this Fund
in Tamil Nadu is ₹150 crore.
3. Public Accounts of the State (Article 266(2) of the Constitution of India)
Apart from the above, all other public money received by or on behalf of the
Government, where the Government acts as a banker or trustee, are credited to
the Public Account. The Public Account includes re-payables like Small
Savings and Provident Funds, Deposits (bearing interest and not bearing
interest), Advances, Reserve Funds (bearing interest and not bearing interest),

5
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Remittances and Suspense heads (both of which are transitory heads, pending
final booking). The net cash balance available with the Government is also
included under the Public Account. The Public Account is not subject to the
vote of the Legislature.
Budget documents
There is a constitutional requirement in India (Article 202) to present before the
House or Houses of the Legislature of the State, a statement of estimated
receipts and expenditures of the Government in respect of every financial year.
This ‘Annual Financial Statement’ (AFS) constitutes the main budget
document. Further, the budget must distinguish expenditure on the revenue
account from other expenditures.
Revenue receipts consists of tax revenue (Own Tax revenue plus share of
Union Taxes / Duties), non-tax revenue and grants from Government of India.
Revenue expenditure consists of all those expenditures of the Government
which do not result in creation of physical or financial assets. It relates to those
expenses incurred for the normal functioning of the Government departments
and various services, interest payments on debt incurred by the Government,
and grants given to various institutions (even though some of the grants may be
meant for creation of assets).
Capital receipts consist of Debt receipts and Non-debt receipts as explained
below:
 Debt receipts: Market Loans, Bonds, Loans from financial institutions,
Net transaction under Ways and Means Advances, Loans and Advances
from Central Government, etc.;
 Non-debt receipts: Proceeds from disinvestment, Recoveries of loans
and advances;
Capital expenditure includes expenditure on the acquisition of land, building,
machinery, equipment and investment in shares.
Loans and advances includes loans and advances given by the Government to
PSUs and other parties.
At present, we have an accounting classification system in Government that is
both functional and economic.
Attribute of
Classification
transaction
Standardised in Function- Education,
Major Head under Grants (4-digit)
List of Major and Health, etc.
Minor Heads Sub-Function Sub Major head (2-digit)
(LMMH) by CGA Programme Minor Head (3-digit)
Scheme Sub-Head (2-digit)
Flexibility left for Sub scheme Detailed Head (3-digit) - Salary, Maintenance etc.
States Economic Object Head (2-digit) - Pay, Periodical
nature/Activity maintenance, etc.

6
 Chapter I - Overview

The functional classification lets us know the department, function, scheme or

programme, and object of the expenditure. Economic classification helps
organise these payments as revenue, capital, debt, etc. Economic classification
is achieved by the numbering logic embedded in the first digit of 4-digit Major
Heads. For instance, 0 and 1 is for revenue receipts, 2 and 3 for revenue
expenditure, etc. Economic classification is also achieved by an inherent
definition and distribution of some object heads. For instance, generally “Pay”
object head is revenue expenditure, “Major Works” object head is capital
expenditure. Object head is the primary unit of appropriation in the budget
documents.
The structure of Government Accounts and the layout of Finance Accounts are
shown in Appendix 1.2. The methodology adopted for assessment of the fiscal
position of the State is given in Appendix 1.3 - Part A. The salient features
of the TNFR Act, 2003, subsequently revised in June 2021, are given in
Appendix 1.3 - Part B.
Structure of Government Accounts

Government Accounts

Consolidated Public
Contingency Fund
Fund Account

Small Savings,
Receipts Expenditure
PF, etc.

Revenue Capital Revenue Capital

Reserve Funds
Receipts Receipts Expenditure Expenditure

General General Deposits and

Tax Revenue Debt Receipts
Services Services Advances

Non-Tax Non-Debt Suspense and

Social Services Social Services
Revenue Receipts Miscellaneous

Grants-in-Aid
Economic Economic
and Remittances
Services Services
Contributions

State's share of Grants-in-Aid

Union Taxes and Public Debt Cash balances
and Duties Contributions

Loans and
Advances

7
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Public Debt and Public Liability

In this Report, ‘Public Debt’ has been taken to comprise market borrowings,
institutional loans, special securities issued to National Small Savings Fund
(NSSF), loan given by Central Government etc. For this purpose, the major
heads 6003 and 6004 - Public Debt have been taken into consideration.
Further, the transactions relating to ‘Small Savings, Provident Fund, etc.’
‘Reserve Funds’ and ‘Deposit and Advances’ under Public Account are such
that the Government incurs a liability to repay the money received or has a claim
to recover the amounts paid. The transactions relating to ‘Remittances’ and
‘Suspense’ under Public Account, includes merely adjusting heads such as
transactions as remittances of cash between treasuries and currency chests and
transfer between different accounting circles.
In this Report, ‘Public Liability’ has been taken to include the transactions under
major heads 8001 to 8554 relating to ‘Small Savings, Provident Fund, etc.’,
‘Reserve Funds’ and ‘Deposit and Advances’ along with the transactions under
major heads 6003 and 6004.

1.5 Budgetary Processes

In terms of Article 202 of the Constitution of India, the Governor of Tamil Nadu
caused to be laid before the State Legislature, a statement of the estimated
receipts and expenditure of the State for the year 2022-23, in the form of an
Annual Financial Statement (referred to as Budget) with estimates of
expenditure,
 charged upon the Consolidated Fund of the State;
 the sums required to meet other expenditure proposed to be made from
the Consolidated Fund of the State; and shall distinguish expenditure on
Revenue Account from other expenditure.
This ‘Annual Financial Statement’ (AFS) constitutes the main budget
document. Further, the budget must distinguish expenditure on the revenue
account from other expenditures.
In terms of Article 203, the above was submitted to the State Legislature in the
form of 54 Demands for Grants/ Appropriations and two ‘Other Publications’
for Debt Charges and Public Debt repayments. After approval of these, the
Appropriation Bill was passed by the Legislature under Article 204 to provide
for appropriation of the required money out of the Consolidated Fund.
The State Budget Manual details the budget formulation process and guides the
State Government in preparing its budgetary estimates and monitoring its
expenditure activities. Results of audit scrutiny of budget and implementation
of other budgetary initiatives of the State Government are detailed in
Chapter III of this Report.

8
 Chapter I - Overview

1.6 Snapshot of Finances

The Table 1.2 provides the details of actual financial results vis-à-vis Budget
Estimates (Revised) for the year 2022-23 vis-à-vis actual of 2021-22.
Table 1.2: Financial results vis-à-vis Budget Estimates (Revised) for the year 2022-23
vis-à-vis actual of 2021-22
(₹ in crore)
Percentage of
Sl. 2021-22 2022-23 2022-23 Percentage of
Components actual to
No. Actuals (BE Revised) Actuals actual to BE
GSDP$
1 Tax Revenue* 1,60,324 1,90,602 1,88,954 99.14 7.99
(i) Own-Tax Revenue 1,22,866 1,51,871 1,50,223 98.91 6.35
**
(ii) Share of Union taxes/duties 37,458 38,731 38,731 100.00 1.64
2 Non-Tax Revenue 12,117 15,309 17,061 111.44 0.72
***
3 Grants-in-aid and Contributions 35,051 39,748 37,734 94.93 1.60
4 Revenue Receipts (1+2+3) 2,07,492 2,45,660 2,43,749 99.22 10.31
5 Recovery of Loans and Advances 5,355 1,141 1,078 94.48 0.05
6 Other Receipts -- 0 42 100.00 0.00
(i) Borrowings and
7 99,148 74,746 90,841 121.53 3.84
other Liabilities (a)
(ii) Net of opening and
closing cash (-) 17,313 (-) 222 (-) 8,955 4033.78 0.38
balance (b)
Total (i) + (ii) 81,835# 74,524 81,886 109.88 3.46
8 Capital Receipts (5+6+7) 87,190 75,665 83,006 109.70 3.51
9 Total Receipts (4+8) 2,94,682 3,21,325 3,26,755 101.69 13.82
10 Revenue Expenditure 2,54,030 2,76,136 2,79,964 101.39 11.84
11 Interest payments 41,564 46,896 46,911 100.03 1.98
12 Capital Expenditure 37,011 38,347 39,530 103.08 1.67
13 Loan and advances 3,641 6,842 7,261 106.12 0.31
14 Total Expenditure (10+12+13) 2,94,682 3,21,325 3,26,755 101.69 13.82
15 Revenue Deficit^^: (4-10) (-) 46,538 (-) 30,476 (-) 36,215 118.83 (-) 1.53
16 Fiscal Deficit ^^{(4+5+6)-14} (-) 81,835 (-) 74,524 (-) 81,886 109.88 (-) 3.46
17 Primary Deficit (16-11) (-) 40,271 (-) 27,628 (-) 34,975 126.59 (-) 1.48
Buoyancy Ratios
(a) Revenue Receipts 1.21 1.45 1.23
(b) Revenue Expenditure 0.47 0.46 0.72
(a) Borrowings and other Liabilities: Net (Receipts-Disbursements) of Public Debt + Net of Contingency Fund
+ Net (Receipts - Disbursements) of Public Account.
(b) There was a difference of ₹103.07 crore between the cash balance reported by AG (A&E) and RBI (details
in Para 4.13)
$ GSDP at current prices ₹23,64,514 crore; * includes SGST ₹53,822.69 crore; ** includes CGST ₹10,945.36
crore.
*** Compensation to State Government for Revenue losses on rollout of Goods and Services Tax ₹16,214.83
crore
# Effective borrowings and other liabilities would be ₹73,740 crore during 2021-22 as the Department of
Expenditure, GoI had decided that GST compensation of ₹8,095 crore given to state as back-to-back loan under
debt receipts would not be treated as debt of the State for any norms which may be prescribed by the Finance
Commission.
^^ The Revenue deficit of ₹46,538 crore and the fiscal deficit of ₹81,835 crore during the year 2021-22 may
be read in conjunction with debt receipt of ₹8,095 crore in lieu of GST compensation.
(Source: Budget documents and Finance Accounts for the respective years)

9
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

During the year 2022–23, the revenue receipts of the State increased by
17.47 per cent over the previous year but fell short marginally by 0.78 per cent
of the budget (revised estimate). During the current year, there was excess of
revenue expenditure (₹2,79,964 crore) over revenue receipts (₹2,43,749 crore),
thereby resulting into revenue deficit of ₹36,215 crore. The State had
maintained its fiscal deficit over GSDP at 3.46 per cent.

1.7 Snapshot of Assets and liabilities of the Government

Government accounts capture the financial liabilities of the Government and the
assets created out of the expenditure incurred. The liabilities consist mainly of
internal borrowings, loans and advances from GoI, receipts from public account
and reserve funds, and the assets comprise mainly the capital outlay and loans
and advances given by the State Government and cash balances.
Table 1.3: Summarised position of Assets and Liabilities
(₹ in crore)
Liabilities Assets
Per cent Per cent
2021-22 2022-23 increase / 2021-22 2022-23 increase /
decrease decrease
Consolidated Fund
Gross Capital
A Internal Debt 5,02,205 5,67,635 13.03 a 3,15,713 3,55,240 12.52
Outlay
Loans and Advances Loans and
B 39,731* 48,258* 21.46 b 36,873 43,055 16.77
from GoI Advances
C Contingency Fund 150 150 -- c Contingency Fund -- -- --
Public Account
Small Savings,
A Provident Funds, 32,033 33,884 5.78 a Advances 8 8 --
etc.
B Deposits 82,625 95,041 15.03 b Remittance 14 11 (-) 21.43
Suspense and
C Reserve Funds 11,288 14,020 24.20 c 280 400 42.86
Miscellaneous
Cash balance
Suspense and
D -- -- -- d (including investment 72,386 81,341 12.37
Miscellaneous in Earmarked Fund)
Total 4,25,274 4,80,055 12.88
Cumulative excess
of expenditure over 2,42,758 2,78,933 14.90
receipts
Total 6,68,032 7,58,988 13.62 Total 6,68,032 7,58,988 13.62
* Effective Loans and Advances would be ₹33,922 crore in 2022-23 and ₹25,395 crore in 2021-
22 as the Department of Expenditure, GoI had decided that GST compensation of ₹8,095 crore
and ₹6,241 crore during 2021-22 and 2020-21 respectively given to the State as back-to-back
loan under debt receipts would not be treated as debt of the State for any norms which may be
prescribed by the Finance Commission.
(Source: Finance Accounts for the respective years)

During the year, the assets increased by 12.88 per cent over the previous year
whereas the liabilities were increased by 13.62 per cent. The liabilities
increased by 17.44 per cent in 2021-22 when compared with 2020-21.

10
 Chapter I - Overview

1.8 Fiscal Indicators

Three key fiscal parameters, viz., revenue, fiscal and primary deficits, indicate
the extent of overall fiscal imbalances in the finances of the State Government
during a specified period. The deficit in the Government Accounts represents
the gap between its receipts and expenditure. Further, the ways in which the
deficit is financed and the resources raised are applied as important pointers to
its fiscal health. This section presents trends, nature, magnitude and the manner
of financing these deficits and also the assessment of actual levels of revenue
and fiscal deficits vis-à-vis targets set for the financial year 2022-23 under
TNFR Act, 2003. The targets fixed for each of the three key fiscal parameters
are as under:
(i) To achieve the Revenue Surplus by 2023-24
(ii) To achieve FD-GSDP ratio at 3.50 per cent in 2022-23
and 3 per cent by 2023-24
(iii) To achieve Debt-GSDP ratio at 29.30 per cent
The achievement during 2022-23 against the above targeted fiscal parameters
are discussed in the following paragraphs.
Fiscal trends
During the current year the State Government received Revenue Deficit grants
amounting to ₹801 crore as part of the Finance Commission Grants to reduce
and ultimately eliminate revenue deficit and to enable all borrowings to be used
for capital expenditure. During the current year, the revenue and primary
deficits decreased and fiscal deficit increased marginally during the year
2022-23, when compared with the previous year (Exhibits 1.4 to 1.6). The
debt/GSDP ratio, which was on an increasing trend from 22.62 per cent in
2018-19 to 28.79 per cent in 2021-22, decreased during the current year and
stood at 28.64 per cent. The fiscal deficit to GSDP ratio decreased from the
previous year and stood at 3.46 per cent during the current year.

Exhibit 1.4: Trends in deficit parameters

2018-19 2019-20 2020-21 2021-22 2022-23
0
-10,000
-18,578
-20,000 -28,199
-30,000 -23,459 -40,271 -34,975
(₹ in crore)

-40,000 -36,215
-35,909 -57,486
-50,000 -46,538
-60,000 -47,335
-70,000 -60,179 -62,326
-81,835 -81,886
-80,000
-90,000
-100,000 -93,983
Revenue Deficit Fiscal Deficit Primary Deficit

(Source: Finance Accounts for the respective years)

Note: Revenue deficit and Fiscal deficit was understated by ₹307.74 crore and ₹302 crore
respectively as mentioned in Para 1.9.1.

11
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Exhibit 1.5: Trends in surplus / deficit relative to GSDP

2018-19 2019-20 2020-21 2021-22 2022-23

0.00

In percentage to GSDP
-1.00
-1.14
-2.00 -1.44 -1.62 -1.53 -1.48
-2.06 -1.94
-2.25
-3.00
-2.90
-3.21
-4.00 -3.45 -3.49 -3.46
-3.95
-5.00

-6.00 -5.26

RD/GSDP FD/GSDP PD/GSDP

(Source: Finance Accounts for the respective years)

Exhibit 1.6: Trends in fiscal liabilities and GSDP

800 35

29.30
700 28.67 28.79 28.70
30
25.20 25.20
Fiscal Liabilities ( ₹ in thousand crore)

28.64 *
600 75.7
48.26 25
25.20 68.73
24.31 27.44 39.72

( in per cent)
500 22.62
17.93
61.61 20
17.29
400
53.19
47.10
15

567.64
300
502.21
429.75

10
352.63

200
304.35

100 5

0 0
2018-19 2019-20 2020-21 2021-22 2022-23

Internal Debt Public Account Liabilities

Loans from Central Government Total Outstanding liabilities to GSDP ratio
Target

* The back-to-back loans of ₹8,095 crore during 2021-22 and ₹6,241 crore during 2020-21 received from GoI in lieu of
GST compensation has not been considered as Debt for working out the indicator.

(Source: Finance Accounts for the respective years)

The State Government have passed the Fiscal Responsibility and Budget
Management Act (FRBM) with the objective of ensuring prudence in fiscal
management by eliminating revenue deficit, reducing fiscal deficit and keeping

12
 Chapter I - Overview

the overall/outstanding debt to acceptable levels, establishing improved debt

management and improving transparency in a medium-term framework. The
Act provides quantitative targets to be adhered by the State with regard to deficit
measures and debt level.
The targeted timeline to eliminate revenue deficit and reduce fiscal deficit was
extended by GoTN from time to time by amending the TNFR Act, 2003. In
compliance with the provisions of TNFR Act, 2003, the State Government
prepared a MTFP for the period 2022-23.
Major fiscal variables provided in the budget and as targeted in the TNFR Act,
2003 along with actuals thereof are given in Table 1.4.

Table 1.4: Compliance with provisions of State TNFR Act

Fiscal targets set in Achievement

Fiscal Parameters the Act/Projections
in MTFP 2018-19 2019-20 2020-21 2021-22 2022-23

GSDP at current prices

16,30,209 17,43,144 17,88,074 20,71,286 23,64,514
(₹ in crore)

Revenue Deficit (-) / Eliminate Revenue

(-) 23,459 (-) 35,909 (-) 62,326 (-) 46,538 (-) 36,215
Surplus (+) (₹ in crore) Deficit by 2023-24

3.5 % - 2022-23#
Fiscal Deficit (-)/
Reduce fiscal deficit (-) 47,335 (-) 60,179 (-) 93,983 (-) 81,835 (-) 81,886
Surplus (+)
to three per cent by (2.90) (3.45) (5.26) (3.95) (3.46)
(as percentage of GSDP)
March 2024
Total outstanding
3,68,736 4,23,743 5,18,796 6,10,667 6,91,591
liability (₹ in crore)
Ratio of total
outstanding liability to 29.30 per cent 22.62 24.31 28.67* 28.79* 28.64*
GSDP (in per cent)
Red colour indicates below the target and Green colour indicates as per the target
* The back-to-back loans of ₹8,095 crore during 2021-22 and ₹6,241 crore during 2020-21 received from
GoI in lieu of GST compensation has not been considered as Debt for working out the indicator.
# MTFP projection.
(Source: (i) TNFR Act; (ii) Budget Speech -2022-23 and (iii) Finance Accounts for the respective
years)

It is observed that the State has improved itself in two variables viz., Revenue
Deficit and Primary Deficit. Actual performance when compared to target set
in MTFP is given in Table 1.5.

13
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Table 1.5: Actuals vis-à-vis projection in MTFP for 2022-23

(₹ in crore)
Sl. Projection as per Actuals Variation
Fiscal Variables
No MTFP (2022-23) (in per cent)
1 Own Tax Revenue 1,46,045 1,50,223 2.86
2 Non-Tax Revenue 15,553 17,061 9.70
3 Share of Central Taxes 30,406 38,731 27.38
4 Grants-in-aid from GoI 38,021 37,734 (-) 0.75
5 Revenue Receipts (1+2+3+4) 2,30,025 2,43,749 5.97
6 Revenue Expenditure 2,66,401 2,79,964 5.09
7 Revenue Deficit (-) / Surplus (+) (5-6) (-) 36,376 (-) 36,215 (-) 0.44
8 Fiscal Deficit (-) / Surplus (+) (-) 83,075 (-) 81,886 (-) 1.43
9 Debt-GSDP ratio (per cent) 29.30 28.64* (-) 0.66

GSDP growth rate at current prices (per

10 9.28 14.16 4.88
cent)

* The back-to-back loans (₹8,095 crore during 2021-22 and ₹6,241 crore during 2020-21)
received from GoI in lieu of GST compensation has not been considered as Debt for working
out the indicator.
(Source: (i) MTFP, (ii) Finance Accounts and GSDP figures from Central Statistics Office)

It may be seen from the above table that there was a significant increase in
receipts under Own tax revenue, Non-tax revenue and Share of Central Taxes
than that anticipated in the MTFP projection for the year 2022-23. The revenue
and fiscal deficits were below than that projected in the MTFP. As per TNFR
Act, revenue deficit should be eliminated by 2023-24. Though the
Revenue Deficit has been decreasing trend from 2021-22, the State may
not adhere to the TNFR target of eliminating revenue deficit by 2023-24.

1.9 Deficits and Total Debt after examination in audit

This section gives an overview of the impact of the audit findings on various
fiscal parameters based on the analysis of the Finance and Appropriation
Accounts.
As per the TNFR Act, the State Government must ensure compliance to the
targets fixed for the fiscal indicators such as deficits, ceiling on debt and on
guarantees, etc. The Revenue Deficit and the Fiscal deficit as worked out for
the State gets impacted due to various circumstances such as misclassification
of revenue expenditure as capital expenditure and off-budget fiscal operations.
Besides, deferment of clear cut liabilities, not depositing cess/royalty to
Consolidated Fund, short contribution to New Pension Scheme, Sinking Fund
and Guarantee Redemption Fund, etc. also impacts the revenue and fiscal deficit
figures. In order to arrive at actual deficit figures, the effect of misclassification
of revenue expenditure/ capital outlay and / or any such misclassification needs
to be included and the impact of such irregularities needs to be reversed.

14
 Chapter I - Overview

1.9.1 Post audit Analysis

Scrutiny of transactions during the year revealed that, revenue deficit and fiscal
deficit were affected by certain accounting adjustments as detailed in
Table 1.6.
Table 1.6: Under/Over statement of Revenue and Fiscal Deficit

Particulars Impact on Revenue Deficit Impact on Fiscal

(Understated (+) / overstated (-)) Deficit (Understated
(₹ in crore) (+) / overstated (-))
(₹ in crore)
Incorrect adjustment of recoveries
of capital expenditure under (+) 5.74 --
Revenue Section
Interest on interest bearing
Reserve Funds and Deposits not
(+) 3.80 (+) 3.80
credited (State Compensatory
Afforestation Fund)
Non-transfer of central grant under
Central Road and Infrastructure (+) 298.20 (+) 298.20
Fund (CRIF)
Total (+) 307.74 (+) 302.00
(Source: Finance Accounts)

The fiscal deficit of the State during the year would increase from
₹81,886 crore (Refer Para 1.8) to ₹82,188 crore, if interest on interest bearing
Reserve Funds and Deposits and non-transfer of central grant under (CRIF)
were made as mentioned in Table 1.6. It is pertinent to mention here that if the
impact as mentioned above is considered, the effective Revenue Deficit would
stand at ₹36,552.74 crore and that the FD-GSDP ration would stand at 3.48 per
cent.
1.9.2 Trends in fiscal liabilities
Analysis of the total outstanding debts / liabilities of the State Government in
terms of (i) debt as a percentage of GSDP and (ii) rate of growth of outstanding
Government debts are detailed in Table 1.7.
Table 1.7: Total outstanding debts / liabilities
(₹ in crore)

2018-19 2019-20 2020-21 2021-22 2022-23

Total outstanding debts/ liabilities 3,68,736 4,23,743 5,18,796 6,10,667 6,91,591
Rate of growth of outstanding
12.93 14.92 22.43 17.71 13.25
liabilities (in per cent)
Ratio of total outstanding liabilities
22.62 24.31 28.67* 28.79* 28.64*
to GSDP (in per cent)
* The back-to-back loan of ₹8,095.25 crore received during 2021-22 and ₹6,241 crore
received during 2020-21 from GoI in lieu of GST compensation has not been considered
as Debt for working out the indicator.
(Source: Finance Accounts for the respective years)

15
State Finances Audit Report, Tamil Nadu for the year ended March 2023

The outstanding debt grew by 13.25 per cent over previous year. Considering
the growth rate of capital expenditure by 6.81 per cent (as compared to 11.92
per cent during the previous year) during the year and the high fiscal deficit, it
is indicative that the borrowing during the year was utilised for financing the
revenue expenditure. To the extent of reduced capital formation, debt acts as
‘burden’ on future generations.
The debt/GSDP ratio (28.64 per cent) was within the target of 29.30 per cent as
per MTFP and if outstanding Off-Budget borrowing of ₹ 2,298.54 crore (Refer
Para 2.6.1.1 of Chapter-II and Para 4.1 of Chapter-IV) is included to the
total outstanding liabilities, the ratio of total outstanding debt to GSDP would
increase to 28.73 per cent.

16
 CHAPTER II
FINANCES OF THE
STATE
Audit Report (Civil) for the year ended 31 March 2013

32
 CHAPTER II

FINANCES OF THE STATE

This chapter provides a broad perspective of the finances of the Government of
Tamil Nadu (GoTN) during the current year (2022-23) and analyses critical
changes in the major fiscal aggregates relative to the previous year (2021-22),
keeping in view the overall trend during the last five years.
2.1 Summary of fiscal transactions in 2022-23 vis-à-vis 2021-22
Table 2.1 presents the summary of the State Government’s fiscal transactions
during the current year (2022-23) vis-à-vis the previous year (2021-22) and
Appendix 2.1 depicts the trends of fiscal indicators over the period
2018-2023.
Table 2.1: Summary of fiscal operations in 2022-23 vis-à-vis 2021-22
(₹ in crore)
Receipts 2021-22 2022-23 Disbursements 2021-22 2022-23
Section-A: Revenue
Revenue receipts 2,07,492.40 2,43,749.34 Revenue expenditure 2,54,030.42 2,79,964.48
State’s Own Tax
1,22,866.29 1,50,222.75 General Services 84,893.54 99,096.70
revenue
Non-tax revenue 12,116.52 17,060.95 Social Services 88,749.10 88,967.59
Share of Union
37,458.62 38,731.24 Economic Services 60,898.32 71,974.59
Taxes/Duties
Grants from Grants-in-aid and
35,050.97 37,734.40 19,489.46 19,925.60
Government of India Contributions
Section-B: Capital and Others
Miscellaneous Capital
0.01 41.97 Capital Expenditure 37,010.78 39,529.91
Receipts
General Services 780.21 1,040.98
Social Services 14,984.96 14,323.77
Economic Services 21,245.61 24,165.16
Recoveries of Loans Loans and Advances
5,354.77 1,078.10 3,640.52 7,260.82
and Advances disbursed
Public Debt receipts 1,04,484.99 1,01,061.71 Repayment of Public Debt 1 9,737.24 27,104.39
Contingency Fund -- -- Contingency Fund -- --
Public Account
3,98,156.68 4,79,342.00 Public Account disbursements 3,83,756.59 4,62,458.90
receipts
Opening Cash Balance 55,072.80 72,386.10 Closing Cash Balance 72,386.10 81,340.72
Total 7,70,561.65 8,97,659.22 Total 7,70,561.65 8,97,659.22
(Source: Finance Accounts for the respective years)

17
 Chapter II – Finances of the State

Table 2.2: Major Changes in key fiscal aggregates in 2022-23 compared to 2021-22
 Revenue receipts of the State increased by 17.47 per cent
 Own Tax receipts of the State increased by 22.27 per cent
Revenue
 Non-tax receipts increased by 40.81 per cent
Receipts
 State’s Share of Union Taxes and Duties increased by 3.40 per cent
 Grants-in-Aid from Government of India increased by 7.66 per cent
 Revenue expenditure increased by 10.21 per cent
 Revenue expenditure on General Services increased by 16.73
per cent
Revenue
 Revenue expenditure on Social Services increased by 0.25 per cent
Expenditure
 Revenue expenditure on Economic Services increased by 18.19
per cent
 Expenditure on Grants-in-Aid increased by 2.24 per cent
 Debt capital receipts decreased by 3.28 per cent
Capital  Though there was an increase in the miscellaneous capital receipts
Receipts by ₹41.97 crore, the non-debt capital receipts as a whole decreased
by 79.08 per cent
 Capital expenditure increased by 6.81 per cent
 Capital expenditure on General Services increased by 33.42 per cent
Capital
 Capital expenditure on Social Services decreased by 4.41 per cent
Expenditure
 Capital expenditure on Economic Services increased by
13.74 per cent
Loans and  Disbursement of Loans and Advances increased by 99.44 per cent
Advances  Recoveries of Loans and Advances decreased by 79.87 per cent
 Public Debt Receipts decreased by 3.28 per cent
Public Debt
 Repayment of Public Debt increased by 37.33 per cent

Public  Public Account Receipts increased by 20.39 per cent

Account  Public Account Disbursements increased by 20.51 per cent
Cash  Cash balance increased by ₹8,954.62 crore (12.37 per cent) during
Balance 2022-23 compared to previous year

The significant changes that occurred during 2022-23, as compared to the

previous year are enumerated in the succeeding sub paragraphs.

 Revenue receipts of the State increased by 17.47 per cent

(₹36,257 crore) over the previous year. Revenue receipts included an
amount of ₹16,215 crore towards compensation for losses on roll out of
GST.

 Revenue expenditure increased by ₹25,934 crore (10.21 per cent) over

the previous year mainly due to increased payments towards ‘Pension
and other retirement benefits’ (₹5,928 crore), expenditure towards
general education (₹5,856 crore) and increased interest payment on
market loans (₹4,363 crore).

 Capital expenditure increased by 6.81 per cent (₹2,519 crore) during

2022-23 over the previous year, as compared to the growth rate of
11.92 per cent in 2021-22 over 2020-21. Major increases were under

18
 Chapter II – Finances of the State

Road Transport (₹1,212.12 crore) and Roads and Bridges

(₹1,028.63 crore), while there had been a substantial decline in the
growth rate in medical and public health (48 per cent), Civil Aviation
(65 per cent), water supply and sanitation (18 per cent), etc.

 Public Debt Receipts i.e., borrowings decreased by ₹3,423 crore

(3.28 per cent) over the previous year.

 Recoveries of loans and advances during the year substantially

decreased by ₹4,277 crore (79.87 per cent) mainly due to the completion
of recoveries by way of conversion of TANGEDCO1s loan as grants-in-
aid under UDAY scheme through book adjustments.

 Loans and advances disbursed during the year increased by ₹3,620

crore (99.44 per cent) over the previous year mainly due to loans to the
tune of (₹4,542 crore) being extended to Public Sector and other
undertaking under ‘Other Development Schemes’ under Urban
Development during the year.

 Public Account receipts and disbursements increased by

₹81,185 crore (20.39 per cent) and by ₹78,702 crore (20.51 per cent)
respectively. Net of receipts and disbursements under Public Account
increased the net receipts by ₹2,483 crore over the previous year.

 Though the net impact of these transactions led to an increase of ₹8,955

crore in the cash balance at the end of the year over the previous year,
the cash balance increased only by 12.37 per cent against an increase of
31.44 per cent during 2021-22.

2.2 Sources and Application of Funds

Table 2.3: Details of Sources and Application of funds during 2021-22 and 2022-23
(₹ in crore)
Increase/
Particulars 2021-22 2022-23
Decrease
Opening Cash Balance with RBI 55,073 72,386 17,313
Revenue Receipts 2,07,492 2,43,749 36,257
Recoveries of Loans and Advances 5,355 1,078 (-) 4,277
Sources Miscellaneous Capital Receipts -- 42 42
Public Debt Receipts (Net) 84,748 73,958 (-) 10,790
Public Account Receipts (Net) 14,400 16,883 2,483
Total 3,67,068 4,08,096 41,028
Revenue Expenditure 2,54,030 2,79,964 25,934
Capital Expenditure 37,011 39,530 2,519
Application Disbursement of Loans and Advances 3,641 7,261 3,620
Closing Cash Balance with RBI 72,386 81,341 8,955
Total 3,67,068 4,08,096 41,028
(Source: Finance Accounts for the respective years)

1
Tamil Nadu Generation and Distribution Corporation.

19
 Chapter II – Finances of the State

Exhibit 2.1: Composition and Application of resources

Composition of resources Application of resources

₹ comes from ₹ goes to

Tax revenue - General Services (RE)

41.40% - 28%

Non-tax revenue -
Social Services (RE) -
4.70%
25.14%
Share of Union
Taxes/Duties - Economic Services
10.68% (RE) - 20.34%
Grants from
Government of India
- 10.40% Grants-in-aid and
Miscellaneous Contributions - 5.63%
Capital Receipts -
0.01% Loans and Advances -
Recoveries of loans & 2.05%
Advances- 0.30%

Public debt receipts - Capital expenditure -

27.86 % 11.17%

Net Public Account

Repayment of public
receipts - 4.65%
debt - 7.67%

RE – Revenue Expenditure.
(Source: Finance Accounts)

2.3 Resources of the State

The resources of the State are described below:

1. Revenue receipts consist of tax revenue (Own Tax revenue plus share
of Union Taxes / Duties), non-tax revenue and grants from Government
of India (GoI).

2. Capital receipts (debt and non-debt capital receipts) comprise

miscellaneous capital receipts such as proceeds from disinvestments,
recoveries of loans and advances, debt receipts from internal sources
(market loans, borrowings from financial institutions/commercial
banks) and loans and advances from GoI.
Both revenue and capital receipts form part of the Consolidated Fund of
the State.

3. Net Public Accounts receipts: These are receipts and disbursements in

respect of certain transactions such as small savings, provident fund,
reserve funds, deposits, suspense, remittances, etc. which do not form
part of the Consolidated Fund.
These are kept in the Public Account set up under Article 266 (2) of the
Constitution and are not subject to vote by the State Legislature. Here,
the Government acts as a banker. The balance after disbursements is the
fund available with the Government for use.

20
 Chapter II – Finances of the State

2.3.1 Receipts of the State

Revenue and Capital are the two streams of receipts that constitute the resources
of the State Government. Besides, the fund available in the Public Account (net
of disbursement made from it) is also utilised by the Government to finance its
deficit.

Composition of receipts of the State during 2022-23

Total Receipts
(₹3,62,814 crore)

Revenue Receipts Capital Receipts Net Public Account

(₹2,43,749 crore) (₹1,02,182 crore) Receipts
(₹16,883 crore)

GIA from GoI

(₹37,734 crore)

Non Debt Receipts Public Debt Receipts

(₹1,120 crore) (₹1,01,062 crore)
Share of Union
taxes and duties
(₹38,731 crore)

Non Tax Revenue

(₹17,061 crore) Recoveries of Loans and Internal debt
Advances excluding ways
(₹1,078 crore) and means
Misc. Capital Receipts advances.
Own tax revenue (₹90,807 crore)
(₹1,50,223 crore) (₹42 crore)
Loans and
advances from
GoI.
(₹10,255 crore)

The total resources of the State Government in 2022-23 were ₹3,62,814 crore.
Of these, revenue receipts were ₹2,43,749 crore, which constituted
67.18 per cent of total resources. Capital receipts (₹1,02,182 crore) and net
Public Account receipts (₹16,883 crore) constituted 28.16 per cent and
4.65 per cent of the total resources respectively.

2.3.2 State’s Revenue Receipts

Statement-14 of the Finance Accounts details the revenue receipts of the

Government. The revenue receipts consist of the State’s own taxes and non-tax
revenues, central tax transfers and grants-in-aid from GoI.

21
 Chapter II – Finances of the State

2.3.2.1 Trends and growth of Revenue Receipts

The composition of revenue receipts, its trends and growth with respect to
GSDP over the five-year period are depicted in the Table 2.4 below.
Table 2.4: Trend in Revenue Receipts
Parameters 2018-19 2019-20 2020-21 2021-22 2022-23
Revenue Receipts (RR)
1,73,741 1,74,526 1,74,076 2,07,492 2,43,749
(₹ in crore)

Rate of growth of RR (per cent) 18.77 0.45 (-) 0.26 19.20 17.47

Own Tax Revenue (₹ in crore) 1,05,534 1,07,462 1,06,153 1,22,866 1,50,223

State’s share of Union taxes and

30,639 26,393 24,924 37,458 38,731
duties (₹ in crore)

Non-Tax Revenue (₹ in crore) 14,200 12,888 10,422 12,117 17,061

Grants-in-aid from GoI (₹ in crore) 23,368 27,783 32,576 35,051 37,734

Own Revenue (Own tax and Non tax

1,19,734 1,20,350 1,16,575 1,34,983 1,67,284
revenue) (₹ in crore)

Rate of growth of Own Revenue

(Own Tax and Non-tax Revenue) 14.58 0.51 (-) 3.14 15.79 23.93
(per cent)

Gross State Domestic Product

16,30,209 17,43,144 17,88,074 20,71,286 23,64,514
(₹ in crore) (2011-12 series)

Rate of growth of GSDP (per cent) 11.27 6.93 2.58 15.84 14.16

RR/GSDP (per cent) 10.66 10.01 9.74 10.02 10.31

(Source of GSDP at current prices: Ministry of Statistics and Programme Implementation)

 The annual growth rate of revenue receipts during 2022-23 was

17.47 per cent (₹36,257 crore) as against a growth rate of 19.20 per cent
during the previous year.
Exhibit 2.2: Trend of Revenue Receipts
300,000 10.80
10.66
10.60
250,000
(As a per cent of GSDP)

10.40
200,000
10.20
(₹ in crore)

150,000 10.31 10.00

243,749

10.01
9.80
174,526
173,741

100,000 10.02
207,492

9.74
9.60
174,076

50,000
9.40

0 9.20
2018-19 2019-20 2020-21 2021-22 2022-23

Revenue Receipts (RR) As a percent of GSDP

(Source: Finance Accounts for the respective years)

22
 Chapter II – Finances of the State

The trend in components of revenue receipts is given below in Exhibit 2.3.

Exhibit 2.3: Trend of components of Revenue Receipts

160,000 150,223

140,000
122,866
120,000 105,534 107,462 106,153

100,000
(₹ in crore) 80,000 38,731

60,000
37,458
40,000 30,639 32,577
26,393
37,734
20,000 23,368 35,051
27,783 24,924
14,200 12,117 17,061
0 12,888 10,422
2018-19 2019-20 2020-21 2021-22 2022-23

Own tax revenue Non-tax revenue

Share of Central taxes Grant-in-aid

(Source: Finance Accounts for the respective years)

2.3.2.2 State’s Own Resources

State’s own resources comprises of revenue from its own tax and non-tax
sources, the details of which are discussed in the following paragraphs.

Own Tax revenue

Own tax revenues of the State consist of State GST, State excise, taxes on
vehicles, Stamp duty and Registration fees, Land revenue, taxes on goods and
passengers, etc. The growth of own tax revenue is given in Exhibit 2.4.

Exhibit 2.4: Trend of Own-tax Revenue during 2018-23

160,000 150,223 80.00
140,000 60.98
61.57 122,866 70.00
105,534
120,000
107,462 106,153 60.00
61.63
(₹ in crore)

100,000
(in per cent)

59.21 50.00
60.74
80,000
40.00
60,000
30.00
40,000
20,000 20.00

0 10.00
2018-19 2019-20 2020-21 2021-22 2022-23

Own tax revenue As per cent of Revenue Receipts

(Source: Finance Accounts for the respective years)

23
 Chapter II – Finances of the State

Components of State’s own tax revenue

The revenue in respect of major taxes and duties are given in Table 2.5.
Table 2.5: Components of State’s own tax revenue
(₹ in crore)
Revenue Head 2018-19 2019-20 2020-21 2021-22 2022-23 Sparkline
State Goods and Service Tax 38533 38,376 37,942 45,277 53,823
Taxes on Sales, Trade, etc. 42,701 44,515 43,489 48,668 59,143
State Excise 6,863 7,206 7,822 8,237 10,423
Taxes on Vehicles 5,573 5,675 4,561 5,627 7,513
Stamps and Registration Fees 11,066 10,856 11,675 14,331 17,560
Land Revenue 178 258 211 205 248
Taxes on Goods and Passengers 3 11 2 12 5
Other Taxes 617 565 451 509 1,508
Total 1,05,534 1,07,462 1,06,153 1,22,866 1,50,223
(Growth rate over previous year
(12.59) (1.83) ((-) 1.22) (15.74) (22.27)
in per cent )
(Source: Finance Accounts for the respective years)

 The annual growth rate of own tax revenue during 2022-23 increased
considerably to 22.27 per cent as against a growth rate of
15.74 per cent during the previous year.
 There were significant increases under State Goods and Service Tax
(18.87 per cent), Taxes on Sales, Trade, etc. (21.52 per cent), State
Excise (26.54 per cent), Taxes on Vehicles (33.52 per cent) and Stamps
and Registration Fees (22.53 per cent).
 Against the budgeted estimate (revised) of ₹55,390 crore, SGST
collection was ₹53,823 crore (2.83 per cent decrease).
Non-tax revenue
Non-tax revenue consists of interest receipts, dividend and profits, mining and
other departmental receipts etc. Details are given in Table 2.6 below:
Table 2.6: Components of State’s non-tax revenue
(₹ in crore)
Components of State's Non-tax revenue
Revenue Head 2018-19 2019-20 2020-21 2021-22 2022-23 Sparkline
Interest receipts 6,875 4,356 3,524 3,918 4,747
Dividends and Profits 156 192 205 272 301
Other non-tax receipts 7,169 8,340 6,693 7,927 12,013
a) Major and Medium Irrigation 45 48 60 66 71
b) Roads and Bridges 143 83 181 118 231
c) Urban Development 1,016 781 829 743 1,092
d) Education 1,592 1,793 1,650 1,065 2,206
e) Non-Ferrous Mining 1,057 1,150 765 1,005 1,200
f) Others 3,316 4,485 3,208 4,930 7,213
Total 14,200 12,888 10,422 12,117 17,061
Percentage of non-tax revenue
11.86 10.71 8.94 8.98 10.20
to State's own resources
(Source: Finance Accounts for the respective years)

24
 Chapter II – Finances of the State

 The non-tax revenue of the State increased by ₹4,944 crore

(40.80 per cent) in 2022-23 over the previous year. As a proportion of
the State’s own resources, the non-tax revenue which stood at
8.98 per cent in 2021-22 increased to 10.20 per cent in 2022-23.
2.3.2.3 Transfers from the Centre
The trend of transfers from Centre for a period of five years (2018-2023) is given
in Exhibit 2.5 below:

Exhibit 2.5: Trends in transfers from Centre

90000
80000 72,509.60 76,465.64

70000 57,501.49
54,175.78
54,006.98
60000
(₹ in crore)

50000 38,731.24
37,458.62
40000 30,638.77 32,576.98
27,783.37
30000 35,050.98 37,734.40

20000
23,368.21 26,392.41 24,924.51
10000
0
2018-19 2019-20 2020-21 2021-22 2022-23

Shares in Central Taxes Grants from Centre Transfers from Centre

(Source: Finance Accounts for the respective years)

The Central tax transfers increased by ₹1,273 crore (3.40 per cent) during the
current year and the grants from Centre had increased by 7.66 per cent over the
previous year.
The details of State’s share of Union taxes and duties, components of central tax
transfers and grants-in-aid from GoI are given in Tables 2.7 to 2.9.
Table 2.7: State’s share in Union taxes and duties - Actual devolution vis-à-vis FC projections
(₹ in crore)
Projections Actual tax
Year Finance Commission Projections Difference
in FCR* devolution
1 2 3 4 5 (4-3)
2015-16 23,389 20,354 (-) 3,035
2016-17 4.023 per cent of net proceeds of all 26,992 24,538 (-) 2,454
2017-18 shareable taxes excluding service tax 31,189 27,100 (-) 4,089
2018-19 and 4.104 per cent of net proceeds of 36,084 30,639 (-) 5,445
shareable service tax (As per
2019-20 41,796 26,393 (-) 15,403
recommendations of XIV FC)
2015-20 1,59,450 1,29,024 (-) 30,426
4.189 per cent of net proceeds of all
2020-21 shareable taxes (As per 39,848 24,925 (-) 14,923
recommendations of XV FC)
4.079 per cent of net proceeds of all
2021-22 26,864 37,458 10,594
shareable taxes
4.079 per cent of net proceeds of all
2022-23 29,884 38,731 8,847
shareable taxes
* Finance Commission Recommendations
(Source: Details furnished by the Finance Department)

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 Chapter II – Finances of the State

Share of union taxes and duties

Table 2.8: Components of Central Tax Transfers
(₹ in crore)
Head 2018-19 2019-20 2020-21 2021-22 2022-23
Central Goods and Services
7,561.77 7,489.35 7,406.64 10,308.10 10,945.36
Tax (CGST)
Integrated Goods and
603.50 -- -- -- --
Services Tax (IGST)
Corporation Tax 10,654.53 8,998.76 7,520.26 10,912.73 12,982.89
Taxes on Income other than
7,846.62 7,051.14 7,709.82 10,911.33 12,678.31
Corporation Tax
Customs 2,171.71 1,672.92 1,324.08 2,920.27 1,522.68
Union Excise Duties 1,443.22 1,163.13 837.75 1,753.77 477.69
Service Tax 282.27 0.00 108.04 609.98 60.56
Other Taxes * 75.15 17.11 17.92 42.44 63.75
Total Central Tax transfers 30,638.77 26,392.41 24,924.51 37,458.62 38,731.24
Percentage of increase over
13.06 (-) 13.86 (-) 5.56 50.29 3.40
previous year
Revenue Receipts 1,73,741 1,74,526 1,74,076 2,07,492 2,43,749
Percentage of Central tax
transfers to Revenue 17.63 15.12 14.32 18.05 15.89
Receipts
* Includes Taxes on wealth, other taxes on Income and Expenditure and Other taxes and duties on
commodities and services
(Source: Finance Accounts for the respective years)

 The actual devolution of State’s share of Union taxes and duties was
greater than the projections made by the Fifteenth Finance Commission
(XV FC) during 2022-23.
Grants-in-aid from Government of India
Table 2.9: Grants-in-aid from GoI
(₹ in crore)
Head 2018-19 2019-20 2020-21 2021-22 2022-23
Grants for Centrally Sponsored Schemes
14,820.26 12,463.85 12,483.68 17,250.57 15,269.61
(CSS)
Finance Commission Grants 3,705.46 5,905.69 8,643.46 9,550.41 5,791.68#
Other transfers/Grants to States/Union
4,843.73 9,485.73 11,449.84 8,250.00 16,673.11$
Territories with Legislature
Total 23,368.21* 27,783.37* 32,576.98 35,050.98 37,734.40
Percentage of increase over the previous year 59.19 18.89 17.25 7.59 7.66
Percentage of GIA to Revenue Receipts 13.45 15.92 18.71 16.89 15.48
$ Includes an amount of ₹16,215 crore being compensation for loss of revenue due to implementation of
GST
#includes revenue deficit grant of ₹801 crore in 2022-23 and the balance ₹4,990.68 crore pertained to
Grants to Rural and Urban Local Bodies and SDRF and SDMF grants.
* Includes Refund of (-) ₹1.24 crore in 2018-19 and (-) ₹71.90 crore in 2019-20
(Source: Finance Accounts for the respective years)

 The grants-in-aid increased by ₹2,683 crore (7.66 per cent) over the
previous year.
 Percentage of grants-in-aid to revenue receipts, which was 16.89 in
2021-22, decreased to 15.48 in 2022-23 mainly due to nil receipt under
‘Contributions to NDRF’ as against an amount of ₹566 crore received
during the previous year.

26
 Chapter II – Finances of the State

Single Nodal Agency (SNA)

The Government of India, Ministry of Finance, Department of Expenditure
provided that every State Government is required to designate a Single Nodal
Agency (SNA) for implementing each Centrally Sponsored Scheme (CSS). The
SNA will open Single Nodal Account for each CSS at the State level in a
Scheduled Commercial Bank authorised to conduct business by the State
Government. Further, as per the new procedure, it is the responsibility of the
State Government concerned to ensure that the entire unspent amount is returned
by all the Implementing Agencies (IAs) to the Single Nodal Account of the
Single Nodal Agency.
GoI had notified procedure for release of funds under Centrally Sponsored
Scheme (CSS) and monitoring utilization of the funds released through Single
Nodal Agency (SNA). As per the procedure, the State Government is to transfer
the Central share received in its accounts to the concerned SNA’s account along
with corresponding State share.
In accordance with the directions of Ministry of Finance, Government of India,
funds received by the State Government under Centrally Sponsored Schemes
(CSS) are restricted for use by the State Government and was required to be
transferred to concerned SNA's account within a period of 21 days of its receipt.
Corresponding State share should be released not later than 40 days of release
of the central share.
As per the SNA Report (2022-23) of PFMS Portal, the State Government
received ₹14,137.90 crore being SNA’s Central Share of CSS Schemes during
the year. In compliance with GoI’s directions, as on 31 March 2023, the State
Government had transferred ₹13,629.21 crore being Central Share and
corresponding State share of ₹11,311.31 crore to the SNA accounts. The details
of the vouchers with respect to expenditure are not available in the AG (A&E)
office. As of 31 March 2023, the amount of unspent amounts lying in the SNA
Accounts was ₹11,453.81 crore.
Nine schemes2 were test checked by Audit to analyse any delay in release of GoI
share and State Government share to SNA. It was noticed that there was delay
of 10 to 20 days beyond 21 days in release of GoI share to SNA in two schemes
and 1 to 20 days beyond 40 days in release of State Government share in two
schemes as detailed in the Appendix 2.2.
Fifteenth Finance Commission Grants
Transfers from GoI to the State during 2022-23 on the recommendations of
XV FC are given in Table 2.10

2
(i) PMAY (ii) PMGSY (iii) SRLM (iv) SPMRM (v) Tamil Nadu National Mission on Edible oil
(vi) Project Tiger (vii) AMRUT (viii) MGNRGE and (ix) Jal Jeevan Mission.

27
 Chapter II – Finances of the State

Table 2.10: Recommended amount, actual release and transfers of Grant-in-aid

(₹ in crore)
Actual Release by
Recommendation of Short fall
Transfers GoI
the XV FC 2022-23
2022-23 2022-23
(i) Grants to PRIs 2,761.00 2,761.00 Nil
(ii) Grants to ULBs 1,360.00 1,360.00* Nil
Total for Local Bodies 4,121.00 4,121.00 Nil
State Disaster Response
856.80 856.80 Nil
Fund
State Disaster Mitigation
214.20 107.10 107.10
Fund
Grand Total 5,192.00 5,084.90 107.10
* ₹ 313 crore received during 2023-24
(Source: Details as furnished by the State Finance Department)

The actual release by the GoI to the State Disaster Mitigation Fund during
2022-23 was ₹311.10 crore. Out of which ₹204 crore related to 2021-22 and
₹107.10 crore pertained to 2022-23, as detailed in Para 2.5.2.3.

2.3.3 Capital receipts

Capital receipts comprise miscellaneous capital receipts such as proceeds from
disinvestments, recoveries of loans and advances, debt receipts from internal
sources (market loans, borrowings from financial institutions/commercial
banks) and loans and advances from GoI.
Table 2.11: Trends in growth and composition of capital receipts

Sources of State's Receipts 2018-19 2019-20 2020-21 2021-22 2022-23

Capital Receipts (₹ in crore) 54,849.65 72,158.31 1,08,112.22 1,09,839.77 1,02,181.78
Miscellaneous Capital Receipts (₹ in crore) -- -- -- 0.01 41.97
Recovery of Loans and Advances(₹ in crore) 6,913.43 5,384.01 5,245.25 5,354.77 1,078.10
Public Debt Receipts (₹ in crore) 47,936.22 66,774.30 1,02,866.97 1,04,484.99 1,01,061.71
Internal Debt (₹ in crore) 45,596.47 64,784.61 91,997.03 90,842.61 90,806.43
Rate of growth of internal debt (per cent) 6.12 42.08 42.00 (-) 1.25 (-) 0.04
Loans and Advances from GoI
2,339.75 1,989.69 10,869.94* #13,642.38 10,255.28
(₹ in crore)
Rate of growth of Loans and Advances
(-) 15.00 (-) 14.96 446.31 25.51 (-) 24.83
(per cent)
Rate of growth of debt Capital Receipts
4.84 39.30 54.05 1.57 (-) 3.28
(per cent)
Rate of growth of non-debt Capital Receipts
(-) 18.42 (-) 22.12 (-) 2.58 2.09 (-) 79.08
(per cent)
Rate of growth of GSDP (per cent) 11.27 6.93 2.58 15.84 14.16
Rate of growth of Capital Receipts (per cent) 1.21 31.56 49.83 1.60 (-) 6.97
* includes ₹6,241 crore as back to back loan #includes ₹8,095 crore as back to back loan, in lieu
of GST compensation which are not to be repaid by the State
(Source: Finance Accounts for the respective years)

28
 Chapter II – Finances of the State

Exhibit 2.6: Growth of capital receipts

120,000
108,112.22 102,181.78
100,000 109,839.77
72,158.31
80,000

(₹ in crore)
54,849.65
60,000

40,000

20,000

0
2018-19 2019-20 2020-21 2021-22 2022-23
(Source: Finance Accounts for the respective years)

 Public Debt receipts decreased from ₹1,04,485 crore during 2021-22 to

₹1,01,062 crore in 2022-23.
2.3.4 State’s performance in mobilization of resources
State’s performance in mobilization of resources is assessed in terms of its own
resources comprising own-tax and non-tax sources.
Tax and non-tax receipts vis-à-vis projections
The State’s own tax and non-tax revenue receipts for the period 2018-23
vis-à-vis assessment made by the Central Finance Commissions and Budget are
given in Exhibit 2.7.
Exhibit 2.7: Tax and non-tax receipts vis-à-vis projections

Own tax revenue Non tax revenue

Budget projections FFC projections Actuals Budget projections FFC projections Actuals

250,000 25,000
193,433

19,822
17,596
168,564

17,061
16,608

200,000 20,000
15,899
151,871

150,223
147,068

15,309
142,588

14,575
14,561
14,200

14,139
133,530

128,351

13,327
126,644
124,813

122,865

12,888

12,117
112,616
(₹ in crore)

(₹ in crore)
107,462

11,301
106,153
105,534

150,000 15,000
10,422

100,000 10,000

50,000 5,000

0 0
2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

(Source: FC recommendations and Budget Speeches of respective years)

During the year, State’s own tax revenue receipts fell short of the budget
projections but exceeded the target fixed under XV FC while non-tax revenue

29
 Chapter II – Finances of the State

receipts fell short of the target fixed under XV FC but exceeded the Budget
projections.

2.4 Application of resources

The State Government is vested with the responsibility of incurring expenditure
within the framework of fiscal responsibility legislations, while at the same time
ensuring that the ongoing fiscal correction and consolidation process of the State
is not at the cost of expenditure directed towards development of capital
infrastructure and social sector. This section gives the analysis of allocation of
expenditure in the State.

2.4.1 Growth and composition of expenditure

The details of total expenditure, its composition, relative share of various

sectors, trends, etc. are given below in Tables 2.12, 2.13 and Exhibits 2.8 to
2.10.

Table 2.12: Total expenditure and its composition

(₹ in crore)
Parameters 2018-19 2019-20 2020-21 2021-22 2022-23
Total Expenditure (TE) 2,27,989.47 2,40,088.56 2,73,304.66 2,94,681.72 3,26,755.21
Revenue Expenditure (RE) 1,97,200.60 2,10,434.73 2,36,402.18 2,54,030.42 2,79,964.48

Capital Expenditure 24,310.84 25,631.58 33,067.65 37,010.78 39,529.91

Loans & Advances 6,478.03 4,022.25 3,834.83 3,640.52 7,260.82

As a percentage of GSDP
TE/GSDP 13.99 13.77 15.28 14.23 13.82

RE/GSDP 12.10 12.07 13.22 12.26 11.84

Capital expenditure/GSDP 1.49 1.47 1.85 1.79 1.67

Loans and Advances/GSDP 0.40 0.23 0.21 0.18 0.31

(Source: Finance Accounts for the respective years)

Table 2.13: Relative share of various sectors of expenditure

(in per cent)
Parameters 2018-19 2019-20 2020-21 2021-22 2022-23
General Services * 32.15 32.99 29.25 29.07 30.65
Social Services * 33.86 33.26 36.82 35.20 31.61
Economic Services * 24.62 25.54 26.75 27.88 29.42
Others (Grants to Local
Bodies and Loans and 9.37 8.21 7.18 7.85 8.32
Advances)
(* Sum of revenue and capital expenditure under these services)

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 Chapter II – Finances of the State

Exhibit 2.8: Total Expenditure: Trends in share of its components

105

2.84 1.67 1.40 1.24 2.22

100

95
(Shares in per cent)
10.68 12.10 12.56
10.66 12.10
90

85

87.65
86.50 86.50 86.20 85.68
80

75
2018-19 2019-20 2020-21 2021-22 2022-23

Revenue Expenditure (RE) Capital Expenditure (CE) Loans and Advances

(Source: Finance Accounts for the respective years)

Exhibit 2.9: Total expenditure - Expenditure by activities

100 9.37 8.21 7.18 7.85 8.32

24.62 25.54 26.75 27.88

80 29.42
(Share in per cent)

60
33.86 33.26 36.82 35.20 31.61
40

20 32.15 32.99 29.25 29.07 30.65

0
2018-19 2019-20 2020-21 2021-22 2022-23

General Services Social Services

Economic Services GIA and Loans & Advances

(Source: Finance Accounts for the respective years)

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 Chapter II – Finances of the State

Exhibit 2.10: Composition of expenditure

In per cent
General Services (Revenue), 28.01%

Social Services (Revenue), 25.14%

Economic Services (Revenue),

20.34%
Capital Expenditure (CE), 11.17%

Grants in aid, 5.63%

Loans & advances, 2.05%

Repayment of Public Debt, 7.66%

(Source: Finance Accounts’2022-23)

 Of the total expenditure of ₹3,26,755 crore during 2022-23, Revenue

Expenditure (₹2,79,964 crore), Capital Expenditure (₹39,530 crore) and
Loans and Advances (₹7,261 crore) accounted for 85.68 per cent,
12.10 per cent and 2.22 per cent respectively.

2.4.2 Revenue Expenditure

Revenue expenditure is incurred to maintain the current level of services and
payment for the past obligation. As such, it does not result in any addition to the
State’s infrastructure and service network.

Revenue Expenditure formed on an average 86.51 per cent (ranging from

86.50 per cent in 2018-19 to 85.68 per cent in 2022-23) of the total expenditure
during the period 2018-23. Rate of growth of Revenue Expenditure has
displayed wide fluctuation during the five-year period 2018-23 between
6.71 per cent and 12.34 per cent, while in 2022-23 it being 10.21 per cent. The
overall Revenue Expenditure, its rate of growth and its ratio to Total
Expenditure are indicated in Table 2.14 and the sectoral distribution of Revenue
Expenditure pertaining to 2022-23 is given in Exhibit 2.11.

Table 2.14: Revenue Expenditure – Basic Parameters

Parameters 2018-19 2019-20 2020-21 2021-22 2022-23
Total Expenditure (TE)
2,27,989.47 2,40,088.56 2,73,304.66 2,94,681.72 3,26,755.22
(₹ in crore)
Revenue Expenditure (RE)
1,97,200.60 2,10,434.73 2,36,402.18 2,54,030.42 2,79,964.48
(₹ in crore)
Rate of Growth of RE
17.47 6.71 12.34 7.46 10.21
(per cent)
Revenue Expenditure as
86.50 87.65 86.50 86.20 85.68
percentage of TE
RE/GSDP (per cent) 12.10 12.07 13.22 12.26 11.84
RE as percentage of RR 113.50 120.58 135.80 122.43 114.86
(Source: Finance Accounts for the respective years)

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 Chapter II – Finances of the State

Exhibit 2.11: Sector-wise distribution of revenue expenditure

(in per cent)
Organs of
State, 0.71 Fiscal Services, 0.60
Grants-in-Aid and
Contributions, 7.12
Interest payment
and servicing of
Debt, 16.98

Economic Services, Administrative

25.71 Services, 5.12

Pensions and
Miscellaneous
General Services,
11.98

Social Services,
31.78

(Source: Finance Accounts’2022-23)

 During 2022-23, the Revenue Expenditure witnessed an increase of

₹25,934.06 crore (10.21 per cent) during the year as against an increase
of 7.46 per cent during the previous year. This was mainly due to
increase of ₹5,927.55 crore, ₹5,855.59 crore and ₹5,346.71 crore
towards Pensions and Retirement Benefits (Major Head 2071), General
Education (Major Head 2202) and Interest payments (Major Head 2049)
respectively during the year. As a percentage of GSDP the Revenue
Expenditure decreased from 12.26 per cent in 2021-22 to 11.84 per cent
during the current year.
 The actual Revenue Expenditure was short of the assessment made in
MTFP by ₹13,563 crore (5.09 per cent). The component-wise breakup
is given in the subsequent paragraphs.

2.4.2.1 Major changes in Revenue Expenditure

Table 2.15 details significant variations under various Heads of Account with
regard to Revenue Expenditure of the State during the current year and the
previous year.

33
 Chapter II – Finances of the State

Table 2.15: Variation in Revenue Expenditure during 2022-23 compared to 2021-22

(₹ in crore)
Major Increase /
Description 2022-23 2021-22
Head Decrease (-)
2071 Pensions and other Retirement Benefits 32,177.50 26,249.95 5,927.55
2202 General Education 42,615.28 36,759.69 5,855.59

2049 Interest Payments 46,910.81 41,564.10 5,346.71

3456 Civil Supplies 13,767.56 9,533.92 4,233.64

2401 Crop Husbandry 13,286.61 10,092.71 3,193.90

2801 Power 17,583.25 15,140.10 2,443.15

2055 Police 9,609.47 8,043.55 1,565.92

2235 Social Security and Welfare 11,827.17 10,634.84 1,192.33

2505 Rural Employment 5,936.87 4,916.01 1,020.86

3055 Road Transport 1,908.69 1,046.82 861.87

2236 Nutrition 4,403.12 3,619.76 783.36

2217 Urban Development 2,143.92 1,373.84 770.08

Welfare of Scheduled Castes Scheduled

2225 Tribes Other Backward Classes and 3,626.29 2,997.13 629.16
Minorities

2075 Miscellaneous General Services 1,358.44 762.43 596.01

2015 Elections 247.97 865.77 (-) 617.80

2211 Family Welfare 3,226.67 3,884.70 (-) 658.03

2216 Housing 2532.62 4119.47 (-) 1586.85

2425 Co-operation 5438.73 7321.13 (-) 1882.40

2245 Relief on account of Natural Calamities 1803.43 9704.44 (-) 7901.01

(Source: Finance Accounts for the respective years)

 Revenue Expenditure on Pensions and other Retirement Benefits was

mainly due to increase in payments towards ‘Gratuities’ by
115.84 per cent (₹916.58 crore), ‘Commuted Value of Pensions’ by
205.09 per cent (₹789.35 crore) and ‘Leave Encashment Benefits’ by
138.33 per cent (₹812.90 crore) indicating huge retirements during the
year.

 Expenditure on ‘General Education’ increased by 15.93 per cent during

the year. This was mainly due to a huge increase of expenditure towards
‘Assistance to Local Bodies for primary education’ from
₹4.78 crore in 2021-22 to ₹806.28 crore (16,768 per cent), increase of
₹1,646.46 crore (15.67 per cent) under ‘Government Secondary
Schools’ and ₹1,282.70 crore (13.24 per cent) under ‘Government
Primary Schools’.

34
 Chapter II – Finances of the State

 Interest payments increased by 12.86 per cent due to increased payment

towards internal debt. The increase was mainly due to increase in the
expenditure on ‘Interest on market loans’ by 13.62 per cent
(₹4,363.28 crore) and ‘Management of debt’ by 19.49 per cent
(₹163.40 crore) during the year.

2.4.2.2 Committed Expenditure

The committed expenditure of the State Government on revenue account
consists of interest payments, expenditure on salaries and wages and pensions.
It has first charge on Government resources.
Apart from above, there are certain items of inflexible expenditure which cannot
be ordinarily altered or varied or are statutorily required on an annual basis,
unlike for variable transactions such as capital expenditure, etc. For example,
the following items may be considered as inflexible expenditure:
(i) Devolution to local bodies - statutory devolutions to local bodies for
pay and allowances (devolution / transfer for capital expenditure);
(ii) Statutory requirements of contribution to Reserve Funds -
Contribution to Consolidated Sinking Fund (CSF), Guarantee
Redemption Fund (GRF), State Disaster Mitigation / Response Fund
(SDMF/SDRF), etc.;
(iii) Recoupment of Contingency Fund - Amount recouped within the
year;
(iv) Transfer of cess to reserve fund / other body, which are statutorily
required;
(v) Share contribution of CSS against the Central Fund received -
Amount of State share to be transferred to SNAs / spent by the State;
(vi) Payment of interest on the balances of the interest-bearing funds as
if they could have been invested and payment of interest on public
debt as charged expenditure - Interest Payment
Upward trend on committed expenditure leaves the Government with lesser
flexibility for development sector. Trend analysis of committed and inflexible
expenditure and its components is depicted in Table 2.16 and share of
committed expenditure in revenue expenditure is shown in Exhibit 2.12.

35
 Chapter II – Finances of the State

Table 2.16: Components of Committed and Inflexible Expenditure

(₹ in crore)
Components of Committed 2018-19 2019-20 2020-21 2021-22 2022-23
Expenditure
Salaries & Wages 43,394 47,447 47,333 50,293 56,970
Salary grants 7,792 8,190 8,027 8,416 9,248
Expenditure on Pensions 29,630 30,202 27,115 26,250 32,177
Interest Payments 28,757 31,980 36,497 41,564 46,911
Total – committed expenditure 1,09,573 1,17,819 1,18,972 1,26,523 1,45,306
Components of inflexible expenditure
Expenditure from SDRF 786 707 1360 1088 329
Expenditure from SDMF 0 0 0 0 143
Revenue Expenditure from
Central Assistances (included 23,293 22,373 24,859 28,330 27,672
CSS/CS)
Devolution to local bodies (MH –
11,881 12,182 10,920 13,134 17,397
3604)
Total – Inflexible expenditure 35,960 35,262 37,139 42,552 45,541
As a percentage of Revenue Receipts (RR)
Salaries & Wages 24.98 27.19 27.19 24.24 23.37
Salary grants 4.48 4.69 4.61 4.06 3.79
Expenditure on Pensions 17.05 17.31 15.58 12.65 13.20
Interest Payments 16.55 18.32 20.97 20.03 19.25
Total-committed expenditure 63.07 67.51 68.34 60.98 59.60
Inflexible Expenditure 20.70 20.20 21.33 20.51 18.68
Total 83.77 87.71 87.67 81.49 78.29
As a percentage of Revenue Expenditure (RE)
Salaries & Wages 22.01 22.55 20.02 19.80 20.35
Salary grants 3.95 3.89 3.40 3.31 3.30
Expenditure on Pensions 15.03 14.35 11.47 10.33 11.49
Interest Payments 14.58 15.20 15.44 16.36 16.76
Total – committed expenditure 55.55 55.99 50.33 49.80 51.90
Inflexible Expenditure 18.24 16.76 15.71 16.75 16.27
Total 73.79 72.75 66.04 66.55 68.17
Non-Committed RE (RE-
Committed – inflexible 51,667 57,354 80,291 84,955 89,117
expenditure)
Percentage of RE 26.20 27.25 33.96 33.44 31.83
Percentage of TE 22.66 23.89 29.38 28.83 27.27
Subsidies 18,922 20,144 25,110 21,689 29,559
Subsidies as a percentage of Non-
36.62 35.12 31.27 25.53 33.17
Committed Expenditure
(Source: Finance Accounts for the respective years)

36
 Chapter II – Finances of the State

Exhibit 2.12: Share of Committed expenditure in total Revenue Expenditure

2022-23 20.35 3.30 11.49 16.76 16.27 31.83

2021-22 19.80 3.31 10.33 16.36 16.75 33.44

2020-21 20.02 3.40 11.47 15.44 15.71 33.96

2019-20 22.55 3.89 14.35 15.20 16.76 27.25

2018-19 22.01 3.95 15.03 14.58 18.24 26.20

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
(in per cent)

Salaries and Wages Salary Grants

Expenditure on Pensions Interest Payments
Inflexible expenditure Non-committed expenditure

(Source: Finance Accounts for the respective years)

 The committed expenditure (₹1,45,306 crore) increased by

₹18,783 crore mainly due to increase in expenditure on pensions by
25.38 per cent (₹6,515 crore) which arose on account of disbursement
of terminal benefits to employees attaining enhanced retirement age of
60 years3, the increase in ‘Salaries’ and ‘interest payments’ by ₹7,509
crore and ₹5,347 crore respectively.
 The expenditure on interest payments stood at 19.25 per cent of the total
revenue receipts (₹2,43,749 crore) of the State during 2022-23, as
against 20.03 per cent during 2021-22. As a percentage of revenue
expenditure, interest payments increased from 16.36 per cent in
2021-22 to 16.76 per cent during the current year.
 The inflexible expenditure is statutory devolution to local bodies booked
under the Major Head ‘3604’, expenditure on SDRF, SDMF and revenue
expenditure on CSS. As a percentage of revenue expenditure, the
inflexible expenditure was ranged between 15.71 per cent and
18.24 per cent during 2018-19 to 2022-23. Further, the inflexible
expenditure (₹45,541 crore) increased by 7.02 per cent during 2022-23
over the previous year (₹42,552 crore)
2.4.2.3 Avoidable Expenditure under National Pension System
GoTN launched Defined Contributory Pension Scheme (DCPS) for its
employees from 1 April 2003. The scheme was applicable to all new entrants
joining State Government Service on or after 2003. Under this system,
employees contribute 10 per cent basic pay and dearness allowance, which is
matched by the State Government and both employer’s and employee’s

3
Vide G.O. Ms. No. 29 dated 25 February 2021.

37
 Chapter II – Finances of the State

contribution are initially transferred to the Public Account (Major Head

‘8342-117- Defined Contributory Pension Scheme’).
DCPS accounts of individual Government employees4 are maintained by
Government Data Centre (GDC). Every year GDC calculates the interest due at
the notified rates and credits the interest to the DCPS Account of individual
Government employee.
The expenditure on Pension and other Retirement benefits during the year in
respect of State Government employees recruited on or before 31 March 2003
was ₹28,840.35 crore which is 10.30 per cent of total Revenue Expenditure of
₹2,79,964.48 crore.
On creation of National Pension System (NPS) architecture, Pension Fund
Regulatory and Development Authority (PFRDA) requested (2008 and 2009)
GoTN to join NPS. GoTN declined (2010) to join NPS architecture and initially
cited non-enactment of PFRDA Act by parliament, to justify its decision to
continue with the existing system of retaining pension fund money in Public
Account of the State.
The State Government even after a lapse of 20 years since inception of the
DCPS, did not join NPS and designate the fund manager. Instead, out of total
amount of ₹63,675.06 crore in the Fund as on 31 March 2023, an amount of
₹56,638.51 crore was invested under “New Group Superannuation Scheme with
Cash Accumulation Plan” with Life Insurance Corporation of India.
The interest amount of ₹1,149.55 crore received from the LIC for the year
2019-2020 has been reinvested in the same fund after adjusting the management
charges of ₹20.90 crore. The interest on investments in LIC (amounting to
₹3,625.98 crore5 (₹1,630.48 crore during 2020-21 and ₹1,995.50 crore during
2021-22)) has been reinvested in LIC. These adjustments have not been
incorporated into the accounts by the State Government. Thus, the interest
which has to be credited in the Government account under the Major Head 0049
was not credited, thereby resulting in understatement of Revenue Receipts to
that extent.
During the year 2022-23, the employee’s and the Government’s contributions
towards DCPS were ₹3,409.52 crore and ₹3,337.14 crore respectively. An
amount of ₹3,864.12 crore was credited to the DCPS Fund as interest by
allocating provision under MH 2049 – Interest payments, by the State
Government during the year. The interest on DCPS had increased from
₹1,714.87 crore in 2017-18 to ₹3,864.12 crore in 2022-23.
During the year 2021-22, the Government earned an interest/average yield of
5.47 per cent (₹1,995.50 crore) and 4.29 per cent (₹506.85 crore) on investment
of DCPS funds in LIC and T.Bills respectively. However, interest paid to
individual account holders during 2021-22 was 7.10 per cent, the rates being at
par with the interest paid to GPF subscribers.

4
Including employees of Local Bodies and aided educational institutions.
5
Interest amount of 2022-23 was not furnished by the Department.

38
 Chapter II – Finances of the State

The interest / average yield of interest earned on investment in LIC could

not be calculated for 2022-23 as the State Government did not furnish
details on interest earned on investment of DCPS funds in LIC during 2022-
23. As a result, Audit could not quantify the avoidable additional amount
of interest being paid by the Government to the subscribers during 2022-
23. The fact, however, remains that had the Government joined NPS and
designated fund managers, the subscribers would have been benefitted with
more returns. Further, this avoidable excess financial burden has been
mounting up year after year, impacting the State’s Revenue Expenditure
and the fiscal prudence to that extent is severely compromised with by the
State Government. This issue was also highlighted in the SFAR 2021-22.
The Government has not yet taken any corrective measures.
On being pointed out by Audit, ACS stated that an Expert Committee was
constituted by GoTN to examine the feasibility of implementing the demand of
continuing the old pension scheme and to make recommendation on the possible
option to Government for appropriate decisions. The Committee had submitted
its report to Government on 27 November 2018, which was under examination.
2.4.2.4 Subsidies
Subsidies are dispensed not only explicitly and booked under the object head
‘subsidies’, but also implicitly6 by providing subsidised public service to the
people. The subsidies extended during the period 2018-23, as a per cent of
Revenue Receipts and Revenue Expenditure are detailed in the Table 2.17
below:
Table 2.17: Expenditure on subsidies during 2018-23
2018-19 2019-20 2020-21 2021-22 2022-23
Subsidies (₹ in crore) 18,922 20,144 25,110 21,689 29,559
Subsidies as a percentage of
10.89 11.54 14.42 10.45 12.13
Revenue Receipts
Subsidies as a percentage of
9.60 9.57 10.62 8.54 10.56
Revenue Expenditure
(Source: Finance Accounts for the respective years)

A list of schemes for which the State Government provided subsidy during
2018-23 are given in Table 2.18 and Table 2.19.

Table 2.18: List of schemes for which explicit subsidy was given by the State Government
(₹ in crore)
Name of the scheme 2018-19 2019-20 2020-21 2021-22 2022-23

Public Distribution System Support 7,989 8,363 9,604 9,324 13,277

Compensation to Tamil Nadu Electricity
Board (TNEB) due to reduction in tariff to 3,076 3,367 3,518 3,448 5,247
domestic consumers
Investment promotion subsidy for industries 2,000 2,560 1,290 1,559 1,404

6
Subsidies which were not booked under the object head “11-Subsidies” under the
relevant major head of account are “Implicit Subsidies”.

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 Chapter II – Finances of the State

Name of the scheme 2018-19 2019-20 2020-21 2021-22 2022-23

Reimbursement of social cost on student

764 1,275 3,430 1,289 1,367
concessions in bus fares

Reimbursement of loss due to issue of free

-- -- -- 1217 2,729
bus passes to women
Free distribution of handloom clothes to the
468 484 479 488 770
people below poverty line
Payment to TNEB on behalf of Power loom
343 336 384 371 375
weavers
Subsidy to farmers for Agricultural inputs 1 183 1 -- --
Other subsidies schemes 4,281 3,576 6,404 3,993 4,390

Total 18,922 20,144 25,110 21,689 29,559

(Source: Finance Accounts for the respective years)

Explicit subsidies increased from ₹21,689 crore in 2021-22 to ₹29,559 crore, an

increase of 36.29 per cent (₹7,870 crore) during the year.
Implicit Subsidies
Implicit subsidies arise when the Government provides social and economic
goods/services at a price lesser than the cost of goods and services incurred by
the Government. It can be in direct or in kind or can be given as concessions.
Some of the major implicit subsidies given in kind during 2022-23 is given in
Table 2.19.
Table 2.19: Implicit subsidies given in kind during 2022-23
(₹ in crore)
Name of the scheme 2022-23
Providing Breakfast to the Government Primary School Students on all School
Days under Chief Minister's Breakfast Scheme
25.53
Free Supply of Bicycles 328.36
Free supply of food and cloth 7.27
Establishment of free Hearse Services in Government Medical
23.48
Institutions through IRCS
Free distribution of Laptop Computers to the Students. 4.46
Production and Distribution of quality seeds 38.42
Scheme for Supply of Sewing Machines 1.35
Smart phones to hearing and visually impaired persons 10.00
Grand Total 438.87
(Source: Finance Accounts’2022-23)

Some of the implicit subsidies in the form of cycle, laptop, cloth etc., which
stood at ₹438.87 crore, was wrongly classified as Grants-in-aid instead of
subsidies.

2.4.2.5 Recoveries under ‘Minor Head – 911’

As per Paragraph 3.10 under General Directions of ‘List of Major and Minor
Heads of Account of Union and States’ (LMMH) issued by the Controller
General of Accounts (CGA), recoveries of overpayments pertaining to previous

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 Chapter II – Finances of the State

year(s) shall be recorded under distinct minor head 'Deduct- Recoveries of

Overpayments' (code ‘911’) below the concerned major/sub-major head
‘without affecting the gross expenditure under the functional Major/Sub-Major
Head in the Appropriation Accounts’.

During the year, an unspent amount of ₹1698.68 crore, under 651 heads of
account, relating to previous years was remitted into the Government account
under the minor head “911 - Recoveries of overpayment”. This included
₹23.36 crore under 27 Schemes and ₹14.82 crore under 61 Schemes of wholly
Centrally Sponsored Schemes and Central Schemes Shared between Centre and
States respectively. Out of 651 schemes, more than one crore remittances
relating to previous years were made under 54 schemes (₹1646.18 crore) which
constituted 96.91 per cent of the remittances (Appendix 2.3). This includes
huge remittances under three major schemes viz., “Dr. Muthulakshmi Reddy
Maternity Assistance Scheme for the female members of Below Poverty Line
families for delivery” (₹585.55 crore), “State's Share towards Premium Subsidy
under Pradhan Mantri Fasal Bima Yojana (PMFBY) for Agriculture”
(₹225.22 crore) and “Interest Subsidy to Co-operative institutions towards
reduced interest for crop loans to the farmers” (₹197.27 crore).
Further scrutiny revealed that under the scheme “2425.00.108.KD - Interest
Subsidy to Co-operative Institutions towards reduced interest for crop loans to
the farmers”, out of the expenditure of ₹1,944.09 crore from 2014-15 to
2022-23, remittances to the tune of ₹991 crore were made into the Government
account under the minor head 911. This indicates that the actual expenditure
was not only inflated in the accounts during the year of drawal, but also inflated
the revenue expenditure and revenue deficit to that extent during that period,
apart from giving a wrong depiction of expenditure against these schemes.
On being pointed out by Audit, Government replied (November 2023) that
necessary instructions had been issued to all department to remit the amount in
the concerned service head of account in the same financial year.

2.4.2.6 State Finance Commission-Non-sharing of GST compensation with

Local Bodies
Article 243-I and 243-Y of the Constitution of India makes its mandatory to the
State Government to constitute a Finance Commission within one year of the
commencement of the 73rd & 74th constitutional amendment act and thereafter
on expiry of every five years. The mandate of the State Finance Commission is
to review the financial position of local bodies and submitted its report and
recommendations to Hon’ble Governor of Tamil Nadu and Hon’ble Chief
Minister. The Government would also submit the SFC reports along with
Explanatory Memorandum on the Action Taken Report (ATR) on
recommendations of SFC in the floor of the House. The Third Tier of
Government viz. Local Bodies in Urban and Rural Areas would receive the
devolution of grants from the State’s Own Tax Revenue funds based on the
prescribed percentage recommended by the respective SFCs and accepted by

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 Chapter II – Finances of the State

Government. The State had constituted Sixth SFCs and Action Taken Notes on
all SFCs were placed in the Assembly.
The Fifth State Finance Commission (5th SFC) in its report in Para 10.20, which
was submitted to Government (December 2016) for the period 2017-18 to
2021-22 had recommended that the Government should share 10 per cent of the
compensation that it receives from the Centre for the shortfall in revenue
collections of the State due to introduction of GST. The above recommendation
was also accepted by Government in their Action Taken Report (ATR)
submitted to Government during March 2017.
Audit scrutiny of the records of Finance Department and Municipal
Administration and Water Supply Department revealed that the Government of
Tamil Nadu had received an amount of ₹46,125.99 crore during the last five
years from 2018-19 to 2022-23 and had not transferred 10 per cent of the
compensation amount of ₹461.26 crore to local bodies as recommended by 5th
SFC and accepted by Government. Thus, non-sharing of the GST compensation
amount as agreed by Government deprived the Local Bodies of the amounts due
to them.
On being pointed out by Audit, Government replied (September 2023) that the
State had sanctioned a sum of ₹80,623.87 crore to local bodies through State
Finance Commission grant, pooled assigned revenue and other scheme funds
which was over and above the GST compensation.
The above reply was silent about non-sharing of GST compensation as SFC had
recommended 10 per cent GST compensation in addition to mandatory SFC
grant and pooled assigned revenue. Despite the acceptance of SFC
recommendations in their ATR, the Government had not implemented them and
did not share the GST compensation for more than five years.
2.4.3 Capital Expenditure
Capital Expenditure (Capex) is primarily expenditure on creation of fixed
infrastructure assets such as roads, buildings, etc. Capex is being met from
budgetary support and extra budgetary resources/off budget. In recent times, the
infrastructure requirements have increased manifold and Special Purpose
Vehicles (SPV) have been set up to carry out bulk of Capex.
During the year, the Government incurred ₹39,530 crore towards Capex, which
increased by ₹2,519 crore (6.81 per cent) over the previous year. This was
against the budgeted estimate (revised) of ₹38,347 crore. It constituted 1.67
per cent of GSDP and 39 per cent of the Public Debt receipts, which is indicative
of the fact that most of the public debt receipts are utilised for either financing
the deficits or for repayment of debts.

42
 Chapter II – Finances of the State

As a percentage of Total Expenditure, the Capex decreased by 0.46 per cent

over the previous year. The trend in Capital expenditure during the period
2018-23 is shown in the Exhibit 2.13 below.
Exhibit 2.13: Capital expenditure in the State

45,000 13.00
37,011 39,530
40,000
12.50
35,000 33,068 12.10
12.56
12.10 12.00
30,000
25,632

(in per cent)

(₹ in crore)
24,311 11.50
25,000

20,000 11.00
10.66 10.68
15,000
10.50
10,000
10.00
5,000

0 9.50
2018-19 2019-20 2020-21 2021-22 2022-23

Capex Capex as percentage of Total Expenditure

(Source: Finance Accounts for the respective years)

2.4.3.1 Major changes in Capital Expenditure
The major changes in Capital expenditure during 2022-23 compared to
2021-22 is given in Table 2.20 below.
Table 2.20: Major changes in Capital Expenditure
₹ in crore)
Major Increase (+) /
Description 2021-22 2022-23
Head Decrease (-)
5055 Capital Outlay on Road Transport 427.73 1,639.85 1,212.12
5054 Capital Outlay on Roads and Bridges 13,385.53 14,414.16 1,028.63
4250 Capital Outlay on Other Social Services 50.17 626.56 576.39
4700 Capital Outlay on Major Irrigation 2,131.46 2,691.43 559.97
Capital Outlay on Welfare of Scheduled Castes,
4225 Scheduled Tribes, Other Backward Classes and 271.60 751.59 479.99
Minorities
4711 Capital Outlay on Flood Control Projects 87.65 531.62 443.97
4405 Capital Outlay on Fisheries 275.28 595.75 320.47
Capital Outlay on other Rural Development
4515 1,745.83 2,005.69 259.86
Programmes
4059 Capital Outlay on Public Works 602.66 821.52 218.86
4217 Capital Outlay on Urban Development 8,453.54 8,210.71 (-) 242.83
4801 Capital Outlay on Power Projects 442.39 57.99 (-) 384.40
Investments in General Financial and Trading
5465 400.00 0.00 (-) 400.00
Institutions
4215 Capital Outlay on Water Supply and Sanitation 3,008.07 2,477.64 (-) 530.43
5053 Capital Outlay on Civil Aviation 1,344.21 472.33 (-) 871.88
4210 Capital Outlay on Medical and Public Health 2,300.78 1,201.20 (-) 1,099.58
(Source: Finance Accounts for the respective years)

The increase under ‘5055 – Capital Outlay on Road Transport’ was mainly due
to investments of ₹462.51 crore made towards Share Capital Assistance to State

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 Chapter II – Finances of the State

Transport Undertakings and ₹949.19 crore towards Share Capital Assistance to

Transport Development Finance Corporation Limited (TDFC) respectively.
Major increases were under Road Transport (₹1,212.12 crore) and Roads and
Bridges (₹1,028.63 crore), while there had been a substantial decline in the
growth rate in medical and public health (48 per cent), Civil Aviation
(65 per cent), water supply and sanitation (18 per cent), etc.

2.4.3.2 Quality of capital expenditure

In the post-Fiscal Responsibility and Budget Management framework, the State
is expected to keep its fiscal deficit not only at low levels but also eliminate
revenue deficit and meet its capital expenditure/investment (including loans and
advances) requirements from its own sources of revenue. In addition, the State
Government is required to initiate measures to earn adequate returns on its
investments and recover its cost of borrowed funds rather than bearing the same
on its budget in the form of implicit subsidies. This section presents the broad
financial analysis of investments and other capital expenditure undertaken by
the Government during the current year vis-à-vis previous years.

(i) Quality of investments in the companies, corporations and other bodies

As per Finance Accounts 2022-23, the State Government as of March 2023 had
invested ₹44,525.55 crore in one Statutory Corporation, 55 Government
Companies, two Joint Stock Companies and various Co-operatives.

The details of investments made by the Government is given in Table 2.21

below:
Table 2.21: Details of Investment made by the Government
Investment at the
Sl. Number of end of the year
Description
No entities
(₹ in crore)
Tamil Nadu Warehousing
1 1 3.81
Corporation
2 Government Companies 55 44,022.31
3 Joint Stock Companies 2 0.71
4 Co-operative Institutions --* 498.72
Total 58 44,525.55
* Number of Co-operative institutions not available
(Source: Finance Accounts)

The average rate of return on these investments was a meagre 0.49 per cent in
the last five years (2018-19 to 2022-23) while the average rate of interest paid
by the Government on its borrowings during the same period was 7.80 per cent.
The Average rate of interest on Government Borrowings during the current year
was 7.37 per cent.

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 Chapter II – Finances of the State

The investments at the end of the year and the details of return on investment
for the period 2018-23 is given in Table 2.22.
Table 2.22: Return on Investment
Investment/return/ cost of
2018-19 2019-20 2020-21 2021-22 2022-23
borrowings
Investment at the end of the year
36,480 39,866 41,578 42,167 44,526
(₹ in crore)
Borrowings at the end of the year*
3,68,736 4,23,743 5,12,555 5,96,331 6,77,255
(₹ in crore)
Return (₹ in crore) 135 160 174 256 294
Return (per cent) 0.37 0.40 0.42 0.61 0.66
Average rate of interest on
Government Borrowings 8.27 8.07 7.80 7.50 7.37
(per cent)
Difference between interest rate
7.90 7.67 7.38 6.89 6.71
and return (per cent)
Difference between interest on
Government borrowings and
2,881.92 3,057.72 3,068.46 2,905.31 2,987.69
return on investment
(₹ in crore) #
# Investment at the end of the year X Difference between interest rate and return
* After excluding back to back loans of ₹6,241 crore in 2020-21 and ₹14,336 crore in 2021-22
and 2022-23 from GoI in lieu of GST compensation shortfall which are not to be repaid by the
State from its sources
(Source: Finance Accounts of the respective years)

During 2022-23, State Government invested ₹1,411.70 crore in State Transport

Corporations (including TN State Development Finance Corporation) and
₹935.78 crore in Chennai Metro Rail Corporation.
Difference in figures of Government and PSUs
There were differences in respect of 23 companies / Corporations as reflected in
Section 2 - Statement 19 of Finance Accounts (Appendix 2.4). The major
differences in investments made by the Government (as per Statement 16 of
Finance Accounts) and PSUs were observed under (i) Tamil Nadu Power
Finance and Infrastructure Development Corporation, (ii) Metropolitan
Transport Corporation (Chennai) Limited and (iii) Chennai Metro Rail Limited.
The Government and the PSUs should take concrete steps to reconcile the
differences.

(ii) Quantum of loans disbursed and recovered during last five years

In addition to the investments in Co-operative Societies, Corporations and

Companies, Government has also been providing loans and advances to many
of these institutions/organisations.
Table 2.23 presents the outstanding loans and advances as on 31 March 2023
and interest receipts vis-à-vis interest payments during the last five years.

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 Chapter II – Finances of the State

Table 2.23: Outstanding loans and advances

(₹ in crore)
Quantum of loans disbursed and
2018-19 2019-20 2020-21 2021-22 2022-23
recovered
Opening balance of outstanding loans 41,794 41,359 39,997 38,587 36,872
Amount advanced during the year 6,478 4,022 3,835 3,640 7,261
Amount recovered during the year 6,913 5,384 5,245 5,355 1,078
Closing balance of outstanding loans 41,359 39,997 38,587 36,872 43,055
Net addition (-) 435 (-) 1,362 (-) 1,410 (-) 1,715 6,183
Interest received 2,703 4 346 320 372
Interest receipts as a percentage of
outstanding Loans and Advances given by 6.50 0.01 0.88 0.85 0.93
the Government (per cent)
Average rate of Interest paid on the
outstanding borrowings of the 8.27 8.07 7.80 7.50 7.37
Government (per cent)
Difference between the rate of interest
paid and interest received (per cent)
1.77 8.06 6.86 6.60 6.44

(Source: Finance Accounts for the respective years)

(iii) Capital locked in incomplete projects

The year wise age profile of the incomplete projects as on 31 March 2023 are
shown in Table 2.25 and the department-wise information is given in
Table 2.24.
Table 2.24: Department-wise profile of incomplete projects

(₹ in crore)
No. of Expenditure
Department incomplete Estimated cost during the
projects* year
Buildings 7 62.71 6.97
Irrigation 27 1,620.01 127.81
Roads and Bridges 132 1,144.82 299.62
Others 1 200.00 149.96
Total 167 3,027.54 584.36

Table 2.25 Age-wise profile of incomplete projects

(₹ in crore)
No. of incomplete Expenditure during the
Year Estimated cost
projects* year
< 1 year 92 680.81 160.56
> 1 year 45 1,666.21 284.53
> 2 years 17 514.86 42.19
> 3 years 8 35.47 4.64
> 4 years -- -- --
> 5 years 1 1.60 --
> 6 years -- -- --
> 7 years 4 128.59 92.44
167 3,027.54 584.36
* Only those projects scheduled to be completed before 31 March 2023 were included
(Source: Finance Accounts’2022-23)

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 Chapter II – Finances of the State

Failure to compete the projects in time leads to escalation of project costs and
delays the accrual of projects’ benefits to the society at large. Delays also result
in postponement of revenue realisation from the projects. Effective steps need
to be taken to complete all these above projects without further delay to avoid
cost overrun due to time overrun.

Capital expenditure met from Reserve Funds

Capital expenditure (₹39,529.91 crore) as reported in the Finance Accounts
depicts the net figures after adjusting (deducting) the amount (₹8.74 crore) met
from the reserve funds.

2.4.4 Expenditure priorities

Enhancing human development levels requires the States to step up their
expenditure on key social services like education, health, etc. Low fiscal priority
(ratio of expenditure under a category to aggregate expenditure) is attached to a
particular sector, if the allocation is below the respective national average. The
higher the ratio of these components to total expenditure, the quality of
expenditure is considered to be better. Expenditure priority of the State with
regard to Health, Education and Capital expenditure are shown in Table 2.26
below:
Table 2.26: Expenditure priorities
(in per cent)
TE/GSDP CE/TE Education/TE Health/TE
General category 16.38 15.58 14.76 5.07
States (2018-19)
Tamil Nadu 13.99 13.50 14.66 5.48
(2018-19)
General Category 15.79 15.22 14.85 5.68
States (2022-23)
Tamil Nadu 13.82 14.32 13.57 5.39
(2022-23)
AE: Aggregate Expenditure, CE: Capital Expenditure, which includes Loans and advances
disbursed.
(Source: For GSDP: Central Statistics Office and data from Economic Advisor)
 State Government’s total expenditure as a proportion of GSDP
decreased from 13.99 per cent in 2018-19 to 13.82 per cent in
2022-23, whereas for GCS, it decreased from 16.38 per cent to 15.79
per cent.
 State Government’s capital expenditure as a proportion of total
expenditure increased from 13.50 per cent in 2018-19 to 14.32
per cent in 2022-23, whereas for GCS, it decreased from
15.58 per cent to 15.22 per cent during the same period.
2.4.5 Object head wise expenditure
The Object head wise expenditure during the year is depicted in Exhibit 2.14
below.

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 Chapter II – Finances of the State

Exhibit 2.14: Object head wise expenditure

(in per cent)

As a percentage of Revenue and Capital Expenditure

Grants-in-Aid

Salaries including salary grants

8.62 and Dearness Allowances
Interest
10.44
0.92
24.73 Pensions and Gratuities

Subsidies
9.25
Investments
7.98 23.13
Major Works
14.93
Others

(Source: Finance Accounts’2022-23)

 While 46.04 per cent of the total revenue and capital expenditure was
incurred towards salaries & allowances, pensionary payments and
interest commitments, investments made during the year was a meagre
0.92 per cent and the expenditure on major works stood at 10.44
per cent. The Government had not given adequate priority to the capital
expenditure.

2.5 Public Account

Receipts and Disbursements in respect of certain transactions such as Small
Savings, Provident Funds, Reserve Funds, Deposits, Suspense, Remittances
etc., which do not form part of the Consolidated Fund, are kept in the Public
Account set up under Article 266(2) of the Constitution and are not subject to
vote by the State Legislature. The Government acts as a banker in respect of
these accounts. The balance after disbursements during the year is the fund
available with the Government for use for various purposes.

2.5.1 Net Public Account Balances

The component-wise net balances in Public Account of the State is given in
Table 2.27 below.

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 Chapter II – Finances of the State

Table 2.27: Component-wise net Public Account balances as of 31 March of the year
(₹ in crore)
Sector Sub-Sector 2018-19 2019-20 2020-21 2021-22 2022-23
I. Small Savings, Small Savings,
(-) 24,109.76 (-) 26,475.22 (-) 29,352.41 (-) 32,032.78 (-) 33,884.02
Provident Funds Provident Funds, etc.
(a) Reserve Funds
-- (-) 113.42 (-) 113.42 (-) 113.42 (-) 1,198.57
bearing Interest
J. Reserve Funds
(b) Reserve Funds
not bearing Interest
(-) 1,330.01 (-) 2,044.94 (-) 2,030.89 (-) 2,273.04 (-) 2,212.12

(a) Deposits bearing

(-) 8,008.32 (-) 9,323.98 (-) 8,014.50 (-) 7643.95 (-) 9,992.02
Interest
K. Deposits and (b) Deposits not
Advances (-) 13,646.16 (-) 15,235.43 (-) 22,096.51 (-) 26,667.81 (-) 28,410.75
bearing Interest
(c) Advances 7.71 7.67 7.64 7.62 7.57
(b) Suspense (-) 141.69 (-) 283.10 29.01 57.60 131.71
(c) Other Accounts 10,100.00 3,692.59 5,841.15 15,108.59 14,402.40
L. Suspense and (d) Accounts with
Miscellaneous Governments of 1.24 1.24 1.24 1.24 1.24
Foreign Countries
(e) Miscellaneous -- -- -- -- --
(a) Money Orders,
and other (-) 0.50 (-) 0.51 (-) 0.48 5.47 5.55
Remittances
M. Remittances
(b) Inter-
Governmental 5.10 8.56 8.48 8.83 5.02
Adjustment Account
Total (-) 37,122.39 (-) 49,766.54 (-) 55,720.69 (-) 53,541.65 (-) 61,143.99
Note: (+) ve denotes debit balance and ( –) ve denotes credit balances
(Source: Finance Accounts for the respective years)
Exhibit 2.15: Yearly changes in composition of Public Account balances
(₹ in crore)

15,167.43

14,535.35
20,000
9,959.55

5,871.40
3,410.73

10,000

14.30
10.57
8.05
8.00
4.60
0
-1,330.01

-2,144.31
-2,158.36

-2,386.46
-3,410.69

-10,000

-20,000
-21,646.77
-24,109.76

-24,551.74

-30,000
-26,475.22
-29,352.41

-30,103.37
-32,032.78
-33,884.02

-34,304.14

-40,000
-38,395.20

-50,000
Small Savings, Reserve Funds Deposits and Suspense and Remittances
Provident Funds, Advances Miscellaneous
etc

2018-19 2019-20 2020-21 2021-22 2022-23

(Source: Finance Accounts for the respective years)

 The public account liability of the Government increased by

14.20 per cent from ₹53,541.65 crore in 2021-22 to ₹61,143.99 crore in
2022-23.

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 Chapter II – Finances of the State

 The major contributions to the public account were from ‘small savings,
provident fund, etc.’ and ‘Deposits and Advances’.

2.5.2 Reserve Funds

Reserve Funds are created for specific and defined purposes under the Public
Account of the State Government. These funds are met from contributions or
grants from the Consolidated Fund of the State.

The total accumulated balance as on 31 March 2023 under Reserve Funds was
₹14,020.21 crore (includes ₹1,198.57 crore in interest bearing Reserve Funds
and ₹12,821.64 crore under non-interest-bearing Reserve Funds). Some of the
major Reserve Funds are discussed below.

2.5.2.1 Consolidated Sinking Fund

The State Governments have set up the Sinking Fund in line with the
recommendations of the Twelfth Finance Commission (XII FC) for
amortization of market borrowings as well as other loans and debt obligations.
The fund is managed by the Reserve Bank of India
The State Government has created a Consolidated Sinking Fund (CSF) in
2005-06 for amortisation of Open Market Loans, Government of India Loans
and Special Securities issued to National Small Savings Fund availed off by the
State Government. The fund is managed by the Reserve Bank of India. As per
the Notification in Tamil Nadu Gazette, the Government may contribute at the
rate of 0.5 per cent of the outstanding liabilities as at the end of the previous
year, to CSF. During the year, the State Government contributed ₹632.94 crore
to the Fund, which works out to only 0.10 per cent of the outstanding liabilities
of ₹6,10,666 crore as on 1 April 2022.

As on 31 March 2023, CSF had a balance of ₹8,703.35 crore. The interest

earned on the investments made during the year was ₹112.86 lakh.

Due to the increased trend in the liabilities, the Government may initiate
contributing the requisite amount as prescribed in the Act.

2.5.2.2 State Disaster Response Fund

In terms of the guidelines of the State Disaster Response Fund, the Centre and
States are required to contribute to the Fund in a certain proportion (75:25). The
contributions are to be transferred to the Public Account to Major Head – 8121.
Expenditure during the year is incurred by operating Major Head – 2245.
The State Governments are required to pay interest to the SDRF at the rate
applicable to overdrafts under overdraft Regulation Guidelines of the RBI. The
interest is to be credited on a half yearly basis. The accretions to the SDRF
together with the income earned on the investment of SDRF is to be invested in

50
 Chapter II – Finances of the State

Central Government dated Securities, auctioned Treasury Bills and other

interest earning deposits with Scheduled Commercial Banks.

The SDRF is to be used only for meeting the expenditure for providing
immediate relief to the victims of a disaster and the provision for disaster
preparedness, restoration, reconstruction and mitigation should not be a part of
SDRF. Such expenditure has to be built into the normal budgetary heads/ State
Plan Funds, etc.

During the year 2022-23, the State Government transferred ₹1,142.40 crore to
SDRF Account towards natural calamities (Central share of ₹856.80 crore and
State Share of ₹285.60 crore)

The details of expenditure charged to SDRF is given below in Table 2.28.

Table 2.28: Details of expenditure charged to SDRF

(₹ in crore)
Expenditure
Major Head of Account Minor Head of Account
during 2022-23
101 - Gratuitous Relief 0.04
2245- Relief on Account
of Natural Calamities - 911 - Deduct-Recoveries of Overpayments (-) 0.03
01- Drought. Sub Total 0.01
101 - Gratuitous Relief 8.47
102 - Drinking Water supply 373.50
111 - Ex-Gratia payment to bereaved families 10.55
113 - Assistance for repairs / reconstruction of houses 4.14
114 - Assistance to Farmers for purchase of Agricultural
172.11
inputs
2245- Relief on Account
of Natural Calamities - 117 - Assistance to Farmers for purchase of livestock 0.57
02- Floods, Cyclones etc. 118 - Assistance for repairs / replacement of damaged
0.01
boats and equipment for fishing
800 - Other Expenditure 20.73
282 – Public Health 0.00
911 - Deduct-Recoveries of Overpayments (-) 6.14
Sub Total 583.94
102 - Management of Natural Disasters, Contingency
7.56
plans in disaster prone areas
800 - Other Expenditure 136.69
80- General
911 - Deduct-Recoveries of Overpayments (-) 9.91
Sub-Total 134.34
Grand Total 718.29
05 - State Disaster 901- Deduct - Amount met from State Disaster
329.25
Response Fund Response Fund
08 - State Disaster 902- Deduct - Amount met from State Disaster
142.80
Mitigation Fund Mitigation Fund
(Source: Finance Accounts’2022-23)
An expenditure of ₹329.25 crore has been defrayed from the Fund during
2022-23. The available balance in the Fund as on 31 March 2023 amounted to
₹813.15 crore.

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 Chapter II – Finances of the State

2.5.2.3 State Disaster Mitigation Fund

The State Disaster Mitigation Fund (SDMF) is constituted in the year 2021-22
under the section 48 (1) (c) of the Disaster Management Act, 2005. This fund is
exclusively meant for the purpose of mitigation projects in respect of disasters
covered under the State Disaster Response Fund (SDRF) / National Disaster
Response Fund (NDRF). The Government of India will contribute 75 per cent
funds of SDMF and the remaining 25 per cent of funds of SDMF will be
contributed by the State Government.
During the year 2022-23, the State Government received ₹204 crore for
2021-22 and ₹107.10 crore for 2022-23 from the Central Government. The State
Government transferred ₹68.00 crore for 2021-22 and ₹35.70 crore for 2022-23
to the fund and the total amount transferred to fund during 2022-23 was
₹414.80 crore. Government had spent ₹142.80 crore for disaster mitigation
projects during 2022-23 and have a credit balance of ₹272 crore as on
31 March 2023.
2.5.2.4 Guarantee Redemption Fund
The Guarantee Redemption Fund (GRF) was constituted in March 2003 for
meeting the expenditure incurred towards discharging the guarantees invoked
and is administered by the Reserve Bank of India. As per the guidelines of the
GRF scheme in Tamil Nadu, the State Government is to contribute an amount
equivalent to atleast 1/5th of the outstanding invoked guarantee and amount
likely to be invoked as a result of the incremental guarantees issued during the
year.
During the year, the Government had contributed only an amount of
₹1,004.50 crore (1.11 per cent) as against the due amount of ₹18,141.84 crore,
being 1/5th of the outstanding guarantee at the end of the year. Thus, there was
a short contribution of ₹17,137.34 crore to the fund during the year. The closing
balance as on 31 March 2023 was ₹2,150.23 crore out of which ₹2,138.74 crore
was invested in treasury bills. The gain on sale of securities during the year was
₹34.32 crore. No guarantees were invoked during 2022-23.

2.6 Public Liability Management

Management of public liability is the process of establishing and executing a
strategy for managing the Government’s liabilities in order to raise the required
amount of funding, achieve its risk and cost objectives, and to meet any other
sovereign debt management goals that the Government may have set through
enactment or any other annual budget announcements.
Trend analysis of outstanding liability (includes internal debt of the State
Government, loans and advances from GoI and Public Account liabilities) and
in terms of debt as a percentage of GSDP for the period 2018-19 to 2022-23 is
given in Exhibit 2.16.

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 Chapter II – Finances of the State

Exhibit 2.16: Outstanding Public Liability and its percentage to GSDP

(₹ in crore)
800,000 35
28.67* 28.79* 28.64*
700,000 30
24.31
600,000 22.62 25
500,000
20

6,91,591
400,000

6,10,667
15

5,18,796
300,000

423,743
368,736
10
200,000
100,000 5

0 0
2018-19 2019-20 2020-21 2021-22 2022-23

Outstanding Public Liability As % of GSDP

* After excluding back to back loans of ₹6,241 crore in 2020-21 and ₹14,336 crore in 2021-22
and 2022-23 from GoI in lieu of GST compensation shortfall which are not to be repaid by the
State from its sources
(Source: Finance Accounts for the respective years)

2.6.1 Liability profile: Components

Total liabilities of the State Government typically constitutes internal debt of
the State (market loans, ways and means advances from RBI, special securities
issued to National Small Savings Fund and loans from financial institutions,
etc.), loans and advances from the Central Government and Public Account
Liabilities. The component-wise liability trend is given in Table 2.29 and
breakup of outstanding liability at the end of 2022-23 is shown in Exhibit 2.17.
Table 2.29: Component wise liability trends
Components of Fiscal Liability 2018-19 2019-20 2020-21 2021-22 2022-23
Outstanding Overall Liability (A+B) 3,68,736 4,23,743 5,18,796 6,10,667 6,91,591
Internal Debt 3,04,350 3,52,625 4,29,748 5,02,205 5,67,635
A. Public Debt (₹ in crore)
Loans from GoI 17,292 17,925 27,440 39,731 48,258*
B. Public Account Liabilities (₹ in crore) 47,094 53,193 61,608 68,731 75,698

Rate of growth of outstanding total liability

12.93 14.92 22.43 17.71 13.25
(percentage)
Liability/GSDP (per cent) 22.62 24.31 28.67 28.79 28.64^

Total Receipts (₹ in crore) 1,63,335 1,87,208 2,44,197 2,48,996 2,28,906

Total Repayments (₹ in crore) 1,21,117 1,32,202 1,49,143 1,57,125 1,47,982

Net Funds Available (₹ in crore) 42,218 55,006 95,054 91,871 80,924

Repayments/ Receipts (per cent) 74.15 70.62 61.07 63.10 64.65

* Effective Loans and Advances from GoI would be ₹33,922 crore after excluding back to back
loans of ₹6,241 crore in 2020-21 and ₹14,336 crore in 2021-22 and 2022-23 from GoI in lieu of
GST compensation shortfall which are not to be repaid by the State from its sources. As a result,
the net funds available would stand at ₹66,588 crore.
^
The back-to-back loans of ₹8,095 crore during 2021-22 and ₹6,241 crore during 2020-21
received from GoI in lieu of GST compensation has not been considered as Debt for working
out the indicator.
(Source: Finance Accounts for the respective years)

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 Chapter II – Finances of the State

Exhibit 2.17: Break up of outstanding liabilities at the end of the Financial Year
2022-23

Outstanding Total Liability: ₹6,91,591 crore

Public Account
Liabilities
₹ 75,698 crore
11%
Internal Debt
₹ 5,67,635
crore
82%

Loans from GoI

₹ 48,258 crore
7%

Effective Loans and Advances from GoI would be ₹33,922 crore after excluding back to
back loans of ₹6,241 crore in 2020-21 and ₹14,336 crore in 2021-22 and 2022-23 from
GoI in lieu of GST compensation shortfall which are not to be repaid by the State from its
sources.
(Source: Finance Accounts’2022-23)

 The internal debt of the Government increased by 13.03 per cent from
₹5,02,205 crore at the end of 2021-22 to ₹5,67,635 crore at the end of
2022-23.
 During the year 2022-23, Open Market Loans were raised through the
RBI by the State Government to the extent of ₹21,500 crore by re-issue
of existing Government Securities which has resulted in allowing
discount amount of ₹882.08 crore.
 Though the outstanding liability increased from ₹6,10,667 crore in
2021-22 to ₹6,91,591 crore in 2022-23, as a percentage of GSDP, it
decreased from 28.79 per cent in 2021-22 to 28.64 per cent in 2022-23.
The component-wise debt trends and the repayments of internal debt vis-à-vis
internal debt taken are shown below in Exhibits 2.18 and 2.19.

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 Chapter II – Finances of the State

Exhibit 2.18: Component wise debt trends

(₹ in crore)

100,000
95,000
90,000
85,000
80,000
75,000
70,000
65,000
60,000
55,000
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
-5,000
-10,000
-15,000
2018-19 2019-20 2020-21 2021-22 2022-23
Market Borrowings 32,278 49,826 76,796 72,500 68,003
Loans from GOI 1,157 633 9,515 12,290 8,528
Special Securities issued to
-1,777 -1,803 -1,803 -1,803 -1,803
NSSF
Loans from Financial
1,215 252 2,130 1,761 -770
Institutions
Small Savings, PF, etc. 2,450 2,365 2,877 2,680 1,851
Deposits and Advances 10,635 8,123 16,437 10,714 12,416
Suspense and
-3,037 5,682 -6,981 -43 -120
Miscellaneous
Remittances 207 -3 0 -6 4
Reserve Fund 253 1,293 656 1,055 2,732
Contingency Fund 0 10 0 0 0
Overall Deficit 43,381 66,378 99,627 99,148 90,841
Increase/Decrease in cash
-3,954 6,199 5,644 17,313 8,955
balance
Gross Fiscal Deficit 47,335 60,179 93,983 81,835 81,886

Note: Effective Loans and Advances from GoI would be ₹33,922 crore after excluding back
to back loans of ₹6,241 crore in 2020-21 and ₹14,336 crore in 2021-22 and 2022-23 from
GoI in lieu of GST compensation shortfall which are not to be repaid by the State from its
sources.
(Source: Finance Accounts for the respective years)

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 Chapter II – Finances of the State

Exhibit 2.19: Internal debt taken vis-à-vis repaid

(₹ in crore)
100,000 91,997 90,843 90,806
90,000
80,000
70,000 64,784
60,000
50,000 45,596

40,000
30,000 25,377
16,510 18,385
20,000 13,881 14,874
10,000
0
2018-19 2019-20 2020-21 2021-22 2022-23

Internal Debt Taken Internal Debt Repaid

(Source: Finance Accounts for the respective years)

Internal debt receipts increased from ₹45,596 crore in 2018-19 to ₹90,806 crore
in 2022-23 and repayment of internal debt had also increased in similar
proportion from ₹13,881 crore to ₹25,377 crore.

2.6.1.1 Off Budget Borrowings

TNFR Act, 2003 defines total liabilities as “the liabilities under the
Consolidated Fund of the State and the Public Account of the State”. However,
the borrowings made by the Corporation(s) / Agencies for implementing various
State Plan programmes, for which the State Government has undertaken to
repay the principal and interest are not captured in the Finance Accounts of the
State. These borrowings add to the liabilities of the State indirectly. The details
of such outstanding borrowings are given in Table 2.30.
Table 2.30: Details of outstanding Off-Budget Borrowings
(₹ in crore)
Sl. Name of the Agency Off-Budget Off-Budget Borrowings Off-Budget
No borrowings as of Borrowings repaid by borrowings as
31 March 2022 during the year Government of 31 March
during the year 2023
Tamil Nadu Rural Housing
1 and Infrastructure 373.03 -- 64.32 308.71
Development Corporation
Water and Sanitation Pooled
Fund – Tamil Nadu Urban
2 239.17 164.48 23.51 380.14
Infrastructure Financial
Services Limited
Tamil Nadu Water Supply
3 0.45 -- 0.45 --
and Drainage Board
Tamil Nadu Water Resources
4 Conservation and River 629.31 1,020.21 39.83 1,609.69
Restoration
Total 1,241.96 1,184.69 128.11 2,298.54
(Source: Budget documents and details furnished by the Finance Department)

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 Chapter II – Finances of the State

Though the repayment of principal and interest is made through the budget, the
outstanding Off-Budget borrowings do not form part of the outstanding debt
liability. The outstanding liability of the Government as on 31 March 2023 was
₹6,91,591 crore and it did not include the Off-Budget borrowing of
₹2,298.54 crore as of 31 March 2023. If Off-Budget borrowing takes into
account, the outstanding liability would stood at ₹6,79,553.54 crore (excluding
back to back loan) and debt GSDP ratio would increase from 28.64 per cent to
28.73 per cent. As they are not depicted in the Finance Accounts each year,
there is lack of transparency in the actual outstanding borrowings of the
Government at the end of year and hence true picture of the liability of the
Government cannot be ascertained through books of accounts.

2.6.1.2 Composition of fiscal deficit and financing pattern

The components of Fiscal deficit and the financing pattern of the deficit is
shown in Table 2.31 and Financing of fiscal deficit expressed through a water
fall Chart is shown in Exhibit 2.20.
Table 2.31: Components of fiscal deficit and its financing pattern
(₹ in crore)
Particulars 2018-19 2019-20 2020-21 2021-22 2022-23

Composition of Fiscal Deficit 47,335 60,179 93,983 81,835 81,886

1 Revenue Deficit 23,459 35,909 62,326 46,538 36,215

2 Net Capital Expenditure 24,311 25,632 33,067 37,011 39,488

3 Net Loans and Advances (-) 435 (-) 1,362 (-) 1,410 (-) 1,714 6,183

Financing Pattern of Fiscal Deficit

1 Market Borrowings 32,278 49,826 76,796 72,500 68,003

2 Loans from GOI 1,157 633 9,515 12,290 8,528

3 Special Securities issued to NSSF (-) 1,777 (-) 1,803 (-) 1,803 (-) 1,803 (-) 1,803

4 Loans from Financial Institutions 1,215 252 2,130 1,761 (-)770

5 Small Savings, PF, etc. 2,450 2,365 2,877 2,680 1,851

6 Deposits and Advances 10,635 8,123 16,437 10,714 12,416

7 Suspense and Miscellaneous (-) 3,037 5,682 (-) 6,981 (-) 43 (-) 120

8 Remittances 207 (-) 3 -- (-) 6 4

9 Reserve Fund 253 1,293 656 1,055 2,732

10 Contingency Fund -- 10 -- -- --

11 Overall Deficit 43,381 66,378 99,627 99,148 90,841

12 Increase/Decrease in cash balance (-) 3,954 6,199 5,644 17,313 8,955

13 Gross Fiscal Deficit 47,335 60,179 93,983 81,835 81,886

(Source: Finance Accounts for the respective years)

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 Chapter II – Finances of the State

Exhibit 2.20: Financing of fiscal deficit

(₹ in crore)
90,000
80,000
70,000
60,000
50,000

81,835

81,886
8,358
40,000
30,000

1,677
-2,531

1,702
20,000

-4,497

-3,762

10
-829

-77
10,000
0
-10,000
-20,000

Decrease Increase

(Source: Finance Accounts’2022-23)

The details of receipts and disbursements financing the fiscal deficit component-
wise during the year is shown in Table 2.32.

Table 2.32: Receipts and Disbursements under components financing the fiscal deficit
(₹ in crore)
Sl. No Particulars Receipt Disbursement Net
1 Market Borrowings 87,000 18,997 68,003
2 Loans from GOI 10,255 1,727 8,528
3 Special Securities issued to NSSF 0 1,803 (-) 1,803
4 Loans from Financial Institutions 3,806 4,576 (-) 770
5 Small Savings, PF, etc. 9,177 7,326 1,851
6 Deposits and Advances 98,511 86,095 12,416
7 Suspense and Miscellaneous 3,66,528 3,66,648 (-) 120
8 Remittances 0 (-) 4 4
9 Reserve Fund 5,126 2,394 2,732
10 Contingency Fund -- -- --
11 Total / Overall Deficit 5,80,403 4,89,562 90,841
12 Cash balance 72,386 81,341 8,955
13 Total / Gross Fiscal Deficit 5,08,017 4,08,221 81,886
(Source: Finance Accounts’2022-23)

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 Chapter II – Finances of the State

2.6.2 Debt profile: Maturity and Repayment

Debt maturity and repayment profile indicates commitment on the part of the
Government for debt repayment or debt servicing. The details of debt and the
debt repayment period is shown in Table 2.33 and Exhibit 2.21.

Table 2.33: Debt Maturity profile of repayment of State debt

Period of repayment Amount Percentage
(Years) (₹ in crore) (w.r.t. Public debt)
0-1 years 39,259 6.37
>1 to 3 years 77,126 12.52
>3 to 5 years 93,721 15.22
>5 to 7 years 81,463 13.23
Above 7 years 2,60,675 42.33
Others7 63,649 10.33
Total 6,15,893 100.00
(Source: Finance Accounts)

Exhibit 2.21: Repayment Schedule of Public Debt

Amount to be repaid (₹ in crore)

260,675
39,259

77,126

93,721

81,463

63,649

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0-1 year 1-3 years 3-5 years 5-7 years Above 7 years Others

(Source: Finance Accounts)

The details of repayment of principal and interest of the outstanding market loan
in the next 10 years (2023-24 onwards) is shown in Table 2.34 and
Exhibit 2.22 below:

7
Payment schedule of this amount is not being maintained by the Accountant General
(A&E).

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 Chapter II – Finances of the State

Table 2.34: Repayment of Debt and interest

(₹ in crore)
Repayment of
Year
Market loans Interest Total
2023-24 34,749.15 2,609.60 37,358.75
2024-25 31,450.00 2,544.79 33,994.79
2025-26 37,375.00 2,926.18 40,301.18
2026-27 40,610.00 3,069.34 43,679.34
2027-28 45,635.32 3,449.23 49,084.55
2028-29 40,905.50 3,320.89 44,226.39
2029-30 33,650.00 2,439.96 36,089.96
2030-31 46,977.00 3,163.33 50,140.33
2031-32 38,100.00 2,699.75 40,799.75
2032-33 26,500.00 2,040.60 28,540.60
Total 3,75,951.97 28,263.67 4,04,215.64

Exhibit: 2.22 - Total Repayment of market loan

60,000
49,084.55 50,140.33
50,000
40,301.18 40,799.75
37,358.75
40,000 44,226.39
₹ in crore

43,679.34
30,000 36,089.96
33,994.79
28,540.60
20,000

10,000

0
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33
Year

(Source: Finance Accounts’2022-23)

Over the period of the next ten years, the above trend indicates that the State’s
repayment of outstanding market loans along with interest shows a fluctuating
trend. The State’s liability on account of interest would be ₹28,263.67 crore and
the liability towards principal amount of market loan would be
₹3,75,951.97 crore over the next 10 years.

2.7 Debt Sustainability Analysis (DSA)

Debt sustainability is defined as the ability of the State to service its debt in the
current and future years. DSA considers the feasibility of meeting debt related
financial obligations during a period beginning with the present and is a crucial
aspect for assessing the financial health of an economy. A high level of debt
raises number of challenges. A high debt level is generally associated with
higher borrowing requirements and therefore, a higher risk of rollover crisis

60
 Chapter II – Finances of the State

(being unable to fulfil borrowing requirements or being able to do so at high

interest rates).
Debt sustainability analysis has been carried out on the basis of fiscal and debt
parameters; Domar approach and compliance of macro-fiscal parameters to the
respective FRBM targets. The results of the analysis are given in the following
paragraphs:
(A) Analysis of variations in debt sustainability indicators for the period
2018-19 to 2022-23 is shown below in Table 2.35 and Exhibit 2.23.

Table 2.35: Trends in debt Sustainability indicators

Debt Sustainability Indicators 2018-19 2019-20 2020-21 2021-22 2022-23
(1) (2) (3) (4) (5) (6)
Outstanding Public Debt* (₹ in crore)
(as on 31st March of the year) 3,21,642 3,70,550 4,50,947 5,27,600 6,01,557

Rate of Growth of Outstanding Public

Debt (per cent) 11.38 15.21 21.70 17.00 14.02

GSDP (₹ in crore) 16,30,209 17,43,144 17,88,074 20,71,286 23,64,514

Rate of Growth of GSDP (per cent) 11.27 6.93 2.58 15.84 14.16
Public Debt*/GSDP (per cent) 19.73 21.26 25.22 25.47 25.44
Average Interest Rate of Outstanding
7.97 7.71 7.54 7.26 7.12
Public Debt (per cent) ^
Interest payments on Public Debt
(₹ in crore)
24,310 26,690 30,983 35,521 40,182
Revenue deficit (-) / surplus (+) without
interest payment (₹ in crore) 851 (-) 9,219 (-) 31,343 (-) 11,017 3,967

Revenue deficit (-) due to interest

payment (₹ in crore) (-) 23,459 (-) 35,909 (-) 62,326 (-) 46,538 (-) 36,215

Percentage of Interest payment to

13.99 15.29 17.80 17.12 16.48
Revenue Receipt
Percentage of Debt Repayment to Debt
31.43 26.76 15.78 18.89 26.82
Receipt
Net Debt available to the State# (₹ in
8,562 22,218 49,414 41,132 33,775
crore)
Net Debt available as per cent to Debt
Receipts**
17.86 33.27 51.14 42.67 33.42

Primary Deficit 18,578 28,199 57,486 40,271 34,975

$
Debt Stabilisation (Quantum spread +
Primary Deficit) (₹ in crore) (-) 7,964 (-) 31,089 (-) 79,853 4,997 7,375
*
Outstanding Public Debt is the sum of outstanding balances under the heads 6003-Internal
Debt and 6004- Loans and Advances from the Central Government after excluding the back-to-
back loan of ₹8,095 crore in 2021-22 and ₹6,241 crore in 2020-21.
#
Net debt available to the State Government is calculated as excess of ‘Public debt’ receipts
over Public debt repayment and interest payment on Public Debt and does not include back to
back loan.
** Debt receipts do not include the back to back loan of 2020-21 and 2021-22
$ Quantum Spread = Debt X (GSDP growth rate – interest rate)/100
^Average Interest Rate of outstanding Public Debt = {Interest Payments on Public Debt /
(Opening Balance of Public Debt + Closing Balance of Public Debt)/2)*100}
(Source: Finance Accounts for the respective years)

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 Chapter II – Finances of the State

Exhibit 2.23: Trends of Debt Sustainability indicators

2018-19 2019-20 2020-21 2021-22 2022-23

31.43
35

26.82
26.76
30

25.47
25.44
25.22
21.70

21.26
25

19.73

18.89
17.80
(in per cent)

17.12
17.00

16.48
15.84

15.78
20

15.29
15.21

14.16
14.02

13.99
11.38

11.27
15

6.93
10

2.58
5

0
Rate of Growth of Rate of Growth of Debt as a percent Percentage of Percentage of
Outstanding GSDP of GSDP Interest payment Public Debt
Public Debt to Revenue Receipt repayment to
Public Debt
Receipt

(Source: Finance Accounts for the respective years)

Effective outstanding public debt would be ₹6,01,557 crore as the Department

of Expenditure, GoI had decided that GST compensation of ₹6,241 crore and
₹8,095 crore given to the State, during 2020-21 and 2021-22 respectively, as
back-to-back loan under debt receipts would not be treated as debt of the State
for any norms which may be prescribed by the Finance Commission and
therefore, the ratio of effective outstanding public debt to GSDP would be
25.44 per cent.
 A sustainable fiscal policy is one where the debt to GSDP ratio is stable
or declining over a period of time. However, from the above it could be
seen that the debt to GSDP ratio was on an increasing trend till the
previous year, marginally reduced during the current year. High debt to
GSDP ratio means higher levels of debt which in turn leads to higher
deficits.
 The ratio of interest payments on public debt to revenue receipts has
decreased considerably to 16.48 per cent. If significant portion of
borrowed funds are used for repayment of borrowings and interest
thereon, the net debt available with the State for developmental activities
is curtailed.
(B) An analysis on debt sustainability was carried out based on a study by E.D
Domar8 [Domar 1944]. The Domar model states that the necessary premise

8
Domar model does not take into account maturity profile, composition, cost and risk
characteristics of debt stock.

62
 Chapter II – Finances of the State

for ensuring stability of public indebtedness is that the interest rates for
Government loans should not exceed the growth rate of GDP.
The dynamics of public debt depending on the interest rate, growth rate of GSDP
and the primary budget balance are as follows:
g-r (g – real economic
growth rate; r – real interest s < 0 (primary deficit) s > 0 (primary surplus)
rate)
Public debt as percentage of
Public debt as percentage of GSDP
g – r > 0 (strong economic GSDP should converge to a
should converge to a stable level
growth) stable level less than zero
greater than zero
leading to public savings.
Public debt as percentage of GSDP
g – r < 0 (slow economic
should increase indefinitely, without Undefined situation
growth)
converging to a stable level.

The results of applying the above parameters in the case of Tamil Nadu, are
shown in Table 2.36.
Table 2.36: Debt Sustainability analysis based on Domar model
Primary
Real Real g–r
Deficit (-)/
Year Growth Interest (Domar Remarks
Surplus(+)
(g) (r) Gap)
(₹ in crore)
2018-19 7.01 4.59 2.41 (-) 18,578 Public debt as percentage of
GSDP should converge to a
2019-20 3.25 2.37 0.88 (-) 28,199 stable level greater than zero
Public debt as percentage of
GSDP should increase
2020-21 0.07 0.98 (-) 0.91 (-) 57,486
indefinitely, without converging
to a stable level.
2021-22 7.92 1.82 6.10 (-) 40,271 Public debt as percentage of
GSDP should converge to a
2022-23 8.19 1.42 6.77 (-) 34,975 stable level greater than zero
Note: Real Growth rate calculated for GSDP at constant prices
Real Interest rate is the average interest rate adjusted for inflation of Tamil Nadu

The DOMAR analysis showed that the Domar gap (g-r) was positive during the
period from 2018-19 to 2022-23, except in 2020-21. During the pre-COVID
period i.e. 2018-19 and 2019-20, the real growth rate of the GSDP was
7.01 per cent and 3.25 per cent respectively and the Domar gap (express as g-r)
remained positive but there was primary deficit in the State. Covid-19 affected
the real growth rate of GSDP during 2020-21 and the Domar gap turned negative
during the year. In the subsequent years (2021-22 and 2022-23), the Domar gap
became positive along with primary deficit, which reflect that Public debt as a
percentage of GSDP tends towards a stable value and is therefore sustainable.
Depending on the stock of debt, it will either increase or decrease in time to
reach a stable level greater than zero.
It may be mentioned that the sustainability of Public Debt will depend on
whether the State economy maintains the real growth rate in the long run
keeping the real interest rate under control.

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 Chapter II – Finances of the State

2.7.1 Utilisation of borrowed funds

Borrowed funds should ideally be used to fund capital creation and
developmental activities. Using borrowed funds for meeting current
consumption and repayment of interest on outstanding loans is not sustainable.
The trends in the utilisation of borrowed funds during the period 2018-19 to
2022-23 is shown in Table 2.37 and Exhibit 2.24.
Table 2.37: Utilisation of borrowed funds
(₹ in crore)
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Total Borrowings (Public Debt) A 47,936 66,774 1,02,867 1,04,485 1,01,062
Repayment of earlier borrowings 15,064 17,866 16,229 19,737 27,104
B
(Principal) (percentage) (31.43) (26.75) (15.78) (18.89) (26.82)
Net capital expenditure 24,311 25,632 33,067 37,011 39,488
C
(percentage) (50.72) (38.39) (32.14) (35.42) (39.07)
Net loans and advances 435 1,362 1,410 1,714 (-) 6,183
D
(percentage) (0.90) (2.04) (1.37) (1.64) ((-) 6.12)
Portion of Revenue expenditure
E = A- 8,126 21,914 52,161 46,023 40,653
met out of net available
B-C-D (16.95) (32.82) (50.71) (44.05) (40.23)
borrowings (percentage)
(Source: Finance Accounts for the respective years)
 40.23 per cent of the borrowed funds was utilised for revenue
expenditure.
 Borrowings decreased by 3.28 per cent during the year due to a steep
increase (17.47 per cent) in revenue receipts.
As per the Finance Commission, States are being given revenue deficit grants
to reduce and ultimately eliminate revenue deficit and to enable all borrowings
to be used for capital expenditure. In 2021-22 and 2022-23, GoTN received
post devolution revenue deficit grant of ₹3,010 crore in 2021-22 and
₹801 crore in 2022-23.
As per TNFR Act, revenue deficit should be eliminated by 2023-24. Though
Revenue Deficit has been decreasing trend from 2021-22, the State may not
adhere to the TNFR target of eliminating revenue deficit by 2023-24.
Exhibit 2.24: Trends of utilisation of borrowed funds

100%
16.95
80% 0.90 32.82
50.71 44.05 40.23
2.04
(in per cent)

60% 50.72 1.64

38.39 1.37
40% 39.07
35.42
32.14
20%
31.43 26.75 26.82
15.78 18.89
0% -6.12
-20%
2018-19 2019-20 2020-21 2021-22 2022-23

Repayment of borrowings Net Capital Expenditure

Net Loans & Advances Revenue Expenditure

(Source: Finance Accounts for the respective years)

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 Chapter II – Finances of the State

2.7.2 Status of Guarantees – Contingent Liabilities

Guarantees are liabilities contingent on the Consolidated Fund of the State in
case of default by the borrower for whom the guarantee has been extended. The
State Governments have come out with legislations or instructions with regard
to cap on the guarantees.
As per Article 293 of the Constitution of India, limits for giving guarantees by
the State Government have to be fixed by the State Legislature. Tamil Nadu
Fiscal Responsibility Act 2003, prescribes a cap on total outstanding guarantees
to 100 per cent of total Revenue Receipts of the preceding year or 10 per cent
of Gross State Domestic Product (GSDP), whichever is lower and cap on risk
weighted guarantees to 75 per cent of total Revenue Receipts of the preceding
year and 7.5 per cent of GSDP, whichever is lower.
The total outstanding guarantees of the State Government were ₹90,709.22
crore as on 31 March 2023. This constituted 43.72 per cent of the total revenue
receipts of 2021-22 (₹2,07,492.40 crore) and 3.84 per cent of the GSDP
(₹23,64,514 crore at current prices). No guarantee was invoked during the year.
Further, as against the estimated receivable Guarantee Fees of
₹1,762.81 crore, Guarantee Fees received by the Government was
₹968.37 crore. Thus, there was a short collection of Guarantee Fees to the tune
of ₹794.44 crore.
The details of outstanding amount of guarantees including interest for the period
2018-19 to 2022-23 is given below in Exhibit 2.25.
Exhibit 2.25: Guarantees given by the State Government
(₹ in crore)
100,000
91,975 90,709
90,000
80,000
65,659
70,000
60,000
44,163 47,319
50,000
40,000
30,000
20,000
10,000
0
2018-19 2019-20 2020-21 2021-22 2022-23

(Source: Finance Accounts for the respective years)

2.7.3 Management of Cash Balances

As per the agreement with the Reserve Bank of India, Tamil Nadu State has to
maintain a minimum daily cash balance of ₹3.25 crore with the Bank. If the
balance falls below the agreed minimum on any day, the deficiency is made

65
 Chapter II – Finances of the State

good by taking ordinary Ways and Means Advances (WMA)/Special Ways and
Means Advances (SWMA)/Overdrafts (OD) from time to time. The limit for
Ordinary Ways and Means Advances to the State Government is
₹3,601 crore with effect from 31 March 2022. The limit of Special ways and
Means Advances is revised by the Bank from time to time . State Government
invests its surplus cash balance in short and long-term GoI Securities and
Treasury Bills. The profits derived from such investments are credited as
receipts under the head ‘0049-Interest Receipts’. The cash balances are invested
in the Consolidated Sinking Fund and Guarantee Redemption Fund as well.

The State Government maintained the minimum daily cash balance with the RBI
during 2022-23 and no WMA/ SWMA/ OD was availed during the year.

The details of cash balance and their investments during the year 2022-23 is
shown in Table 2.38 below:
Table 2.38: Cash Balances and their investment
(₹ in crore)
Opening balance on Closing balance on
1 April 2022 31 March 2023
A. General Cash Balance
Cash in treasuries -- --
Deposits with Reserve Bank of India 266.95 (-) 59.17
Deposits with other Banks -- --
Remittances in transit – Local 16.80 16.80
Total 283.75 (-) 42.37
Investments held in Cash Balance
14,875.95 14,123.55
investment account
Total (A) 15,159.70 14,081.18
B. Other Cash Balances and Investments
Cash with departmental officers viz.,
4.16 4.16
Public Works, Forest Officers
Permanent advances for contingent
7.59 7.35
expenditure with department officers
Investment in earmarked funds 57,214.65 67,248.03
Total (B) 57,226.40 67,259.54
Total (A + B) 72,386.10 81,340.72
Interest realized 3,917.94 4,747.10
(Source: Finance Accounts’2022-23)

Cash Balances (and its investments) of the State Government at the end of the
current year increased by ₹8,955 crore from ₹72,386 crore in 2021-22 to
₹81,341 crore in 2022-23.
The State Government has earned an interest of ₹130 crore during 2022-23 from
the investments made in GoI Securities and Treasury Bills. Out of the
investment of ₹67,248 crore in earmarked funds, ₹8,320.93 crore was invested

66
 Chapter II – Finances of the State

in the Consolidated Sinking Fund and ₹2,138.74 crore in Guarantee Redemption

Fund at the end of the year.
The general cash balance would have gone negative had the entire budget
provision of ₹3,94,255.72 crore was utilized without leaving the unspent
(savings) provisions of ₹35,089.39 crore.
The trends of cash balance investment account of the Government during the
period 2018-19 to 2022-23 are shown in Table 2.39.
Table 2.39: Cash Balance Investment Account (Major Head-8673)
(₹ in crore)
Opening Closing Increase (+) / Interest
Year
Balance Balance decrease (-) earned
2018-19 18,585.03 11,008.09 (-) 7,576.94 729.20
2019-20 11,008.09 10,141.94 (-) 866.15 300.72
2020-21 10,141.94 5,622.30 (-) 4,519.64 214.51
2021-22 5,622.30 14,875.95 9,253.65 120.58
2022-23 14,875.95 14,123.55 (-) 752.40 130.32
(Source: Finance Accounts for the respective years)

The trend analysis of the cash balance investment of the State Government
during 2018-23 revealed that the investment at the end of 2018-19, which was
₹11,008 crore, gradually reduced to ₹5,622 crore at the end of the 2020-21 and
then further increased significantly to ₹14,124 crore at the end of March 2023.
The Government paid interest at an average rate of 7.12 per cent towards
outstanding public debt.
Exhibit 2.26 compares the balances available in the Cash Balance Investment
Account and the Market Loans taken by the State during the period 2018-23.
Market Loans were taken at higher interest rates whereas investment in Treasury
Bills yielded interest at lower rates.
Exhibit 2.26: Market loans vis-à-vis Cash Balance

100,000 91,997 90,843 90,806

90,000
80,000
64,784
70,000
(₹ in crore)

60,000
45,596
50,000
40,000
30,000
14,876 14,124
20,000 11,008 10,142
5,622
10,000
0
2018-19 2019-20 2020-21 2021-22 2022-23

Cash Balance Investment (CB) Market borrowing (Internal Debt)

(Source: Finance Accounts for the respective years)

67
 Chapter II – Finances of the State

A positive 'net cash balance investment' denotes that during the month the
Government had invested that amount in Treasury Bills (MH 8673) and a
negative 'net cash balance investment' indicates that the Government has
credited back into Government Account from the Treasury Bills by way of
Maturity or Discount during the month.
General cash balance of ₹14,081 crore includes cash balance investment of
₹14,124 crore and Deposits with RBI and remittance in transit was
(-) ₹43 crore.

2.8 Conclusion
State’s Own Resources:
Own tax revenue: The annual growth rate of own tax revenue during 2022-23
was 22.27 per cent.
Own tax revenue as a percentage of GSDP of the State during
2022-23 was 6.35.
Non-tax revenue: The non-tax revenue of the State increased by ₹4,944 crore
(40.80 per cent) in 2022-23 over the previous year.

State’s performance in mobilization of resources: During the year, State’s

own tax revenue receipts fell short of the budget projections but exceeded the
target fixed under XV FC while non-tax revenue receipts fell short of the target
fixed under XV FC but exceeded the Budget projections.
(Paragraphs 2.3.2 and 2.3.4)

Revenue expenditure: During 2022-23, the revenue expenditure witnessed an

increase of ₹25,934.06 crore (10.21 per cent) during the year as against an
increase of 7.46 per cent during the previous year. As a percentage of GSDP
the Revenue expenditure decreased from 12.26 per cent in 2021-22 to
11.84 per cent during the current year. There was short devolution of
₹461.26 crore to local bodies due to non-sharing of GST compensation.

Capital expenditure increased by 6.81 per cent during the year. As a

percentage of total expenditure, capital expenditure decreased by 0.46 per cent
during the current year.

(Paragraphs 2.4.1 and 2.4.3)

2.9 Recommendations

(i) The State Government should mobilise its resources to minimise

dependence on borrowings.

(ii) Committed expenditure such as salaries, pension and interest

payments, which are on increasing trend, requires utmost attention
of the State Government.

68
 CHAPTER III
BUDGETARY
MANAGEMENT
 CHAPTER III

BUDGETARY MANAGEMENT
3.1 Introduction
Effective financial Management ensures decisions taken at the policy level are
implemented successfully at the administrative level without wastage or
diversion of funds. This chapter is based on the audit of Appropriation Accounts
of the State. It reviews allocative priorities of the Government, reports on
deviations from Constitutional provisions and highlights issues affecting
transparency.

3.2 Budget process

In compliance with Article 202 of the Constitution of India, in respect of every
financial year, a statement of the estimated receipts and expenditure of the State
for that year, called “the annual financial statement (Budget)” is to be laid before
the State Legislature. The estimates of the expenditure show ‘charged’ and
‘voted’ items1 of expenditure separately and distinguish expenditure on revenue
account from other expenditure. Legislative authorisation is necessary before
incurring any expenditure by the State Government.

As per the Tamil Nadu Budget Manual, Finance Department frames Rules for
the guidance of Estimating Officers and departments of the Secretariat in the
preparation and examination of the budget estimates and the subsequent control
over expenditure to ensure that it is kept within the authorised grants. The
Finance Department consolidates the Estimates embodying the decision of
Government and prepares the following:
i) Summary statement of the financial position for the budgeted year;
ii) Detailed Estimates of receipts; and
iii) Statements of demands for grants followed by detailed estimates of
expenditure.
These estimates include both voted and charged expenditure to be met from the
Consolidated Fund of the State. A typical budget preparation process in the
State is given in the flow chart below:

1
Charged Expenditure: Certain categories of expenditure (e.g. salaries of
Constitutional authorities, loan repayments, etc.) constitute a charge on the
Consolidated Fund of the State and are not subject to vote by the Legislature.
Voted Expenditure: All other expenditure is voted by the Legislature.

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Budgetary Process

Budgetary process
States own revenue
(Tax and Non-Tax)

Estimated resource
Central devolution (Taxes 1 pool
and Grants)

Net borrowings (Internal

and External Debts)
Includes establishment
Provided for committed expenditure including
2 expenditure salaries, pension, interest,
etc.

Allocation for central

schemes and Resources for State’ s
3 corresponding state flagship schemes are
CSS, CS, EAPs, etc.
share in those scheme generally allocated by
Finance Department in
consultation with
Administrative
Department
Allocation for State’s
4 flagship schemes/
programmes

Once the sectoral allocation

is finalised, Administrative
5 departments
submits grants to
Finance Department

Demands for grants are

6 placed in Budget

CSS: Centrally Sponsored Schemes; CS: Central Schemes; EAP: Externally Aided Projects

The annual budget is tabled in the house of the State Legislature by the Finance
Minister each year.

The total amount approved by the State Legislature including the original and
supplementary budgets, expenditure and savings during 2022-23 is depicted in
Exhibit 3.1.

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 Chapter III – Budgetary Management

Exhibit 3.1: Summary of Budget and Expenditure

Original Budget:
₹3,64,107.02
crore

Expenditure Savings:
Total Budget:
 ₹ 3,59,166.33 crore ₹35,089.39 crore
₹3,94,255.72
crore
Supplementary
Provision:
₹30,148.70
crore

Approved by the Legislature Implemented by the Government

3.3 Gender Budgeting

The Gender Budgeting Statement (GBS) (Statement 13) is a tool for gender
mainstreaming which uses the budget as an entry point to apply a gender lens
to the entire policy process.

Government of Tamil Nadu (GoTN) presents a GBS as part of annual budget

document from the year 2018-19 onwards. However, the proposed Gender
Budget Cells (GBC) were not established in all departments to facilitate the
integration of gender analysis into the Budget. Only three departments (viz.
Rural Development & Panchayat Raj, Agricultural and Farmers Welfare and
Cooperation, Food and Consumer Protection) had so far created (September
2023) GBCs in their departments besides a nodal GBS in Finance Department.

The GBS presented by GoTN depicts the probable allocation for women in the
total budget which are classified into three categories based on the percentage
of allocation proposed for schemes benefiting women viz., Part A (schemes that
are specifically targeted for women with 100 per cent allocation), Part B
(schemes that are beneficiary oriented wherein 40 per cent to 99 per cent of
outlay benefits women) and Part C (other schemes and expenditure items of
GoTN wherein at least 30 per cent of outlay is expected to be beneficial to
women).
3.3.1 Overview of Gender Budget Statement 2022-23
The year wise comparison of Gender Budget Statement from 2018-19 to
2022-23 is given below in Exhibit 3.2.

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Exhibit 3.2: Gender Budget Statement- Year wise comparison

(₹ in crore)
237111.63
250000 230408.72
202930.25
200000 164871.90 177607.85
150000
78796.16 88298.87 92410.65
100000 65071.65 69232.88
50000
0
2018-19 2019-20 2020-21 2021-22 2022-23
Year

Budget Estimate ( in crore) Gender Budget Allocation ( in crore)

The percentage of gender budget outlay over the budget estimate varies between
38.32 per cent (during 2021-22) and 39.47 per cent (during 2018-19) and
marginally increased by 0.65 per cent in 2022-23 compared to previous year.
Also, the percentage of allocation under Part A, B & C schemes falls within the
prescribed limit during the years.
3.3.2 Analysis of Gender Budget Statement 2022-23
The details of number of schemes and amount allocated under each part in the
GBS for the year 2022-23 is detailed below in Table 3.1:
Table 3.1: Category wise details of GBS 2022-23
(₹ in crore)
Financial Year 2022-23
Parts of GBS No of No of Amount included
BE 2022-23
Sectors schemes in GBS 2022-23
Part A 11 89 6,623.63 6,623.63
Part B 13 298 73,103.67 38,571.74
Part C -- NA* 1,57,384.33 47,215.28
Total 410 2,37,111.63 92,410.65
* 23 Departments implementing the schemes
(Source: Gender Budget Statement 2022-23)

Among 11 sectors allocated under Part A, Social Welfare and Nutrition sector
was allocated the maximum around 84.75 per cent and the maximum allocation
was provided for the flagship scheme on ‘Reimbursement of loss due to issue
of free bus passes to women’ with an allocation of ₹1,521.21 crore under Part
A. Among 13 sectors under Part B, ‘Education Sports and Culture’ sector had
the maximum allocation at around 20.36 per cent and among schemes, the
maximum allocation of ₹3,750 crore was provided to ‘Social Security Net-Food
Security-PDS support’ scheme under ‘General Economic Services’ sector of
Part B.

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 Chapter III – Budgetary Management

Analysis of GBS for the year 2022-23 revealed the following.

 The GBS was not prepared as per the format prescribed by GoI in
Statement No.13 as the actuals of the 2020-21, budget estimate and
revised estimate of the previous year 2021-22 were not depicted in the
GBS presented by GoTN. As a result, the actual expenditure on women
and supplementary grants, if any provided for schemes included in GBS
during the past years could not be ensured by Audit.
 Non-formation of GBCs in line departments contributed to non-
preparation of GBS in a holistic manner by carrying out proper gender
analysis of all schemes in all sectors as indicated below:
 Non-allocation of funds to Handlooms and Textile sector in
GBS in any Part even though Tamil Nadu ranked fourth in the
State-wise list of number of women handloom workers as per
4th All India Handloom Census 2019-20.
 Similarly, certain women-oriented schemes such as ‘Pudhumai
Penn Scheme/ Moovalur Ramamirtham Ammaiyar Higher
Education Assurance Scheme’ under Grant No.45, ‘Wing for
Crime against Women and Children’ under Grant No. 22 and
‘Providing Training and Incubation facility to Self Help Group
women on Food Processing technology Schemes under State
Innovation Fund’ under Grant No.42 were not included in GBS.
 The percentage of allocation for ‘Agriculture and Allied
Activities’ sector had reduced considerably from 7.03 per cent
to 0.96 per cent during 2019-20 to 2022-23, despite this sector
having the highest distribution of female workers with 62.9 per
cent as per Annual Periodic Labour Force Survey Report
2021-22.
3.3.3 Withdrawal of provision under Part A schemes
The budget provision for five Part A schemes included in GBS 2022-23 were
fully withdrawn, resulting in ‘Nil’ expenditure under the respective heads of
account. Among these schemes two schemes viz., NIRBHAYA fund (Grant No.
34) and Mahila Shakthi Kendra Scheme involved a budget provision of ₹71.37
crore and ₹9.38 crore respectively. NIRBHAYA fund scheme was a Centrally
Sponsored Scheme (CSS) launched in eight selected Metropolitan cities in India
with an objective to create a safe, secure and empowering environment for
women in public places and to enable them to pursue all opportunities without
the threat of gender-based violence and/or harassment. The Mahila Shakthi
Kendra Scheme aimed to empower rural women through community
participation and to facilitate inter-sectoral convergence of schemes and

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

programs meant for women. Both the schemes were funded in 60:40 ratio by
GoI and GoTN. Withdrawal of the budget provisions under these schemes and
the Nil expenditure established poor implementation of these nationally
important schemes despite availability of funds.
3.3.4 Other audit observations
The list of 100 per cent women-oriented schemes under Part A, where the
budget was less utilised than the provision as given in Table 3.2.
Table 3.2: Schemes under Part A, where budget was less utilised
(₹ in crore)
Percentage
Sl Budget Actual
Scheme of
No. Estimate Expenditure
utilisation
1 Menstrual Hygiene Programme 115.01 79.66 69.26

2 Marriage Assistance Schemes 761.99 91.86 12.06

Dr.Muthulakshmi Reddy Maternity
Assistance Scheme for the female
3 816.98 691.20 84.60
members of below poverty line
families for delivery
Indira Gandhi National Destitute
4 867.66 604.20 69.64
Widow Pension Scheme
Social Security Net-Pension to
5 174.83 143.80 82.25
Deserted Wives
6 Autonomous Colleges (Women) 2.17 1.31 60.37
Government Hospital for Women and
7 44.93 38.42 85.51
Children, Chennai
Mother Teresa Women's University,
8 16.50 12.60 76.36
Kodaikanal
9 Compensation for tubectomy 16.66 12.90 77.43
10 Muslim Women Society 4.13 2.49 60.29
11 Pension for poor old spinster 36.61 31.00 84.68
(Source: Gender Budget Statement and Appropriation Accounts’2022-23)

Audit observed that in respect of ‘Menstrual Hygiene Programme’, only 69.26

per cent of the budget was utilised during 2022-23. It is pertinent to mention
that ₹147.65 crore, being the unspent balances under this scheme relating to
previous years was brought into account during 2022-23. This established that
the provision for this scheme has been underutilised consistently.

On being pointed out by Audit, the Director of Public Health and Preventive
Medicines replied (November 2023) that due to non-availability of raw
materials and transportation on account of COVID 19, the proper supply of
sanitary napkins could not be made. The reply was not tenable as COVID 19
restrictions was relaxed during 2022-23.

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 Chapter III – Budgetary Management

Further, in respect of 12 schemes under Part A, only token budget provisions

were being provided and the same was subsequently withdrawn. After leaving
out these 12 schemes, the net total number of schemes covered under Part A
would be 77 instead of 89. Details are enlisted under Appendix 3.1.

Audit observed that lack of formation of Gender Budget Cell in all State
Government departments, the functioning of which helps in streamlining the
policies/schemes/programmes based on the quantum of resources available to
address the developmental needs of women resulted in underutilisation of
budget provision and improper budgetary process.

3.4 Appropriation Accounts

Appropriation Accounts are accounts of the expenditure of the Government for
each financial year, compared with the amounts of voted2 grants and charged3
appropriations for different purposes as specified in the schedules appended to
the Appropriation Act. These Accounts depict the original budget provision,
supplementary grants, surrenders and re-appropriations and indicate actual
capital and revenue expenditure on various specified services vis-à-vis those
authorised by the Appropriation Act in respect of both Charged and Voted items
of budget. The Appropriation Accounts thus facilitate understanding of
utilisation of funds and are, therefore, complementary to the Finance Accounts.
3.4.1 Summary of total provisions, actual disbursement and
savings/excess during 2022-23

The summarised position of total budget provision and disbursements with its
bifurcation into Grants/Appropriations during 2022-23 for 54 Grants/ two
appropriations is given in Table 3.3.
Table 3.3: Number of Grants/Appropriations operated by the State in 2022-23
(₹ in crore)
Sl Descripti Total No. of Items of Revenue Capital Budget Disbursements
No. on Grants/ Expenditure Provision
Appropriations Voted/
Charged
A Grants Voted/
54 54 47 3,16,485.72 2,84,514.73
Charged
B Appropri
2 Charged 1 1 77,770.00 74,651.61
ations
Total (A+B) 3,94,255.72 3,59,166.33
(Source: Appropriation Accounts for the year 2022-23)

2
Amounts voted by the State Legislature in respect of demands for grants for specific
purposes.
3
Amounts directly charged to the Consolidated Fund of the State, which are not subject
to the vote of the State Legislature.

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

3.4.2 Charged and Voted disbursements

The details of total voted and charged disbursement and savings/excess for the
five-year period from 2018-19 to 2022-23 are given below in Table 3.4.
Table 3.4: Trend of Savings/Excess
(₹ in crore)
Provisions Disbursements Net savings (-)
Year
Voted Charged Total Voted Charged Total Voted Charged
2,03,324 44,846 2,48,170 (-) 17,844 (-) 1,980
2018-19 2,21,168 46,825 2,67,993
(92) (96) (92.60) (8) (4)
2,10,349 50,910 2,61,259 (-) 26,009 (-) 1,084
2019-20 2,36,358 51,995 2,88,353
(89) (98) (90.60) (11) (2)
2,40,033 53,720 2,93,753 (-) 42,806 (-) 2,413
2020-21 2,82,839 56,133 3,38,972
(85) (96) (86.66) (15) (4)
2,56,920 62,442 3,19,362 (-) 27,619 (-) 2,759
2021-22 2,84,539 65,201 3,49,740
(90) (96) (91.31) (10) (4)
2,83,715 75,451 3,59,166 (-) 31,930 (-) 3,160
2022-23 3,15,645 78,611 3,94,256
(90) (96) (91.10) (10) (4)
Figures in parenthesis indicate per cent of utilisation
(Source: Appropriation Accounts for the respective years)

The Government spent 86.66 to 92.60 per cent of the budget provisions during
the last five years. The total utilisation of voted grants was 90 per cent and
charged appropriation was 96 per cent of the provision during the current year,
with no change over the previous year.
3.4.3 Budget marksmanship
Budget Marksmanship is about examining the relations between the budget
projections of revenue and expenditure against actual receipt and spending. The
World Bank’s Public Expenditure and Financial Accountability (PEFA)
measures the Budget Reliability in terms of Aggregate Expenditure Outturn and
Expenditure Composition Outturn.
3.4.3.1 Aggregate Expenditure Outturn
Aggregate Expenditure Outturn measures the extent to which the aggregate
budget expenditure outturn/actual expenditure compares with the budget
originally approved. This reflects the fiscal marksmanship or the accuracy of
the forecast of revenue and expenditure during the year.

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 Chapter III – Budgetary Management

Table 3.5: Comparison between Original Budget and Actual expenditure

(₹ in crore)
Percentage of
Difference between
deviation in
Original Actual the Actual
Section actual
Budget Expenditure Expenditure and
expenditure with
Original Budget*
Original Budget
Revenue 2,87,886.95 2,85,028.80 (-) 2,858.15 (-) 0.99
Capital 43,072.81 39,772.32 (-) 3,300.48 (-) 7.66
* Excess of actuals over the original provision is denoted as (+) figure and shortage of actuals
over original provision is denoted as (-) figure
(Source: Appropriation Accounts for the year 2022-23)

In Revenue section, the overall deviation in Actual Expenditure compared with

Original Budget was 0.99 per cent. This was due to deviation up to 25 per cent
in 41 grants, more than 25 per cent and up to 50 per cent in eight grants, and
more than 50 per cent and up to 100 per cent in six grants respectively.

In Capital section, the overall deviation in Actual Expenditure compared with

Original Budget was 7.66 per cent. This was due to deviation up to 25 per cent
in 13 grants, more than 25 per cent and up to 50 per cent in nine grants, more
than 50 per cent and up to 100 per cent in six grants and more than or equal to
100 per cent in 15 grants respectively. The original provision given under five
grants were surrendered and no expenditure incurred.

3.5 Audit of Appropriation

Audit of appropriation by the CAG seeks to ascertain whether the expenditure
actually incurred under various grants is in accordance with the authorization
given under the Appropriation Act and that the expenditure required to be
charged under the provisions of the Constitution (Article 202) is so charged. It
also ascertains whether the expenditure incurred is in conformity with the laws,
relevant rules, regulations and instructions.
3.5.1 Comments on integrity of budgetary and accounting process
3.5.1.1 Expenditure incurred without authority of law
Article 266 (3) of the Constitution of India prohibits withdrawal of money from
the Consolidated Fund of the State unless relevant Appropriation Acts under
Articles 204 and 205 of the Constitution of India are passed by the Legislature.
However, it was noticed that in eight cases, a total expenditure of ₹40.09 lakh
as detailed in Table 3.6 was incurred through re-appropriation without
provision either in Original or Supplementary stage and exceeded the limits

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

prescribed in the ‘New Service Rules’ constituting ‘New Service/New

Instrument of Service’. Failure to observe the prescribed procedure had led to
incurring of expenditure on the schemes without the authority of legislature.
Table 3.6: Expenditure based on irregular re-appropriation
(₹ in lakh)
Provision made
Provision made
Sl. Grant in Original and Actual
Head of Account through Re-
No. No. Supplementary Expenditure
appropriation
Estimates
1 05 2401.00.104.AD 0 1.10 1.10
2 05 2401.00.107.JA 0 0.76 0.76
3 19 2210.01.001.AS 0 4.81 4.81
4 29 3452.01.101.PA 0 1.65 1.65
5 39 4210.02.103.JA 0 17.48 17.48
6 43 4202.01.202.JH 0 2.90 2.90
7 44 2851.00.102.MC 0 3.37 3.37
8 45 2235.02.103.UO 0 8.02 8.02
Total 0 40.09 40.09
(Source: Appropriation Accounts for the year 2022-23)

Audit observed that re-appropriation of funds to the Heads of Account without

any provision in Original or Supplementary stage indicate defective budgeting
process. Further, the expenditure was incurred without legislative authority and
hence, was unconstitutional.
3.5.1.2 Drawal of funds to avoid lapse of budget grant
According to Para 178 of the Tamil Nadu Budget Manual, it is irregular to draw
money from Government account without immediate requirement. Further, as
per Article 39 of the Tamil Nadu Financial Code Volume-I, all appropriations
lapse at the close of the financial year and no money should be drawn from the
treasury in order to prevent it from lapsing and use it for expenditure after the
end of year.

During the year, it was noticed that the amounts transferred to DDO’s Bank
Account, under the heads of account as shown in Table 3.7 were treated as
expenditure in the Appropriation Accounts, though the unspent amount
(₹4.59 crore) after actual expenditure are lying in DDO’s Bank Account,
thereby violating the codal provisions and inflating the revenue expenditure of
the department to that extent. This is indicative of the fact that the money was
drawn without requirement and it was drawn to avoid lapse at the close of the
financial year.

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Table 3.7: Unspent amount in the Bank Account as on 31 March 2023

(₹ in lakh)
Unspent
Amount
Amount amount in the
Sl. Grant Head of actually spent
Name of DDO Transferred Bank account
No. No. Account during 2022-
during 2022-23 as on 3l
23
March, 2023
Directorate of Technical
1 20 3425.60.200.JQ 165.40 158 7.40
Education (Science City)
Directorate of Technical
Education (Tamil Nadu
2 20 3425.60.200.AF 381.99 306.86 75.13
Science and Technology
Centre)
Director of Town and 2217.05.191.SC 346.38 83.1 263.28
3 26
Country Planning 2217.05.800.PD 222.57 132.57 90
Chennai Unified
4 Metropolitan Transport 26 3055.00.800.AN 808 784.84 23.16
Authority
Total 1,924.34 1,465.37 458.97
(Source: Appropriation Accounts for the year 2022-23)

3.5.1.3 Misclassification of Expenditure

Misclassification of expenditures and receipts has a great impact on the integrity
of the financial statements. Annual Financial Statement distinguishes
expenditure on revenue account from other expenditure. Classification of
expenditure of revenue nature as capital expenditure or vice-versa, results in
overstatement/understatement of revenue expenditure and revenue deficit/
surplus.
Incorrect booking of expenditure
There are specific object heads meant for obtaining provision for acquisition of
Capital Assets and other Capital Expenditure.

During the year, capital expenditure of an amount of ₹5.74 crore booked under
the Major Head 5054 was to be transferred to ‘State Infrastructure and
Amenities Fund’. Instead, due to misclassification, the sum of ₹5.74 crore was
transferred from Major Head 2217 to the ‘State Infrastructure and Amenities
Fund’ as ‘Expenditure met from Reserve Fund’. This had resulted in
understatement of Revenue Expenditure to that extent.
3.5.1.4 Unnecessary or excessive Supplementary grant
During 2022-23, against the original budget provision of ₹3,64,107.02 crore and
supplementary provision of ₹30,148.70 crore, only an expenditure of
₹3,59,166.33 crore was incurred, leading to a net savings of ₹35,089.39 crore.

Test checked cases of supplementary provisions showed instances of

unnecessary/excessive/inadequate provisions (Appendix 3.2 (a), Appendix
3.2 (b) and Appendix 3.3) as detailed in Exhibit 3.3.

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Exhibit 3.3: Unnecessary/excessive/inadequate supplementary provision

Unnecessary Inadequate Supplementary

Supplementary Excessive Supplementary
Provision (>₹10 crore ) Provision (>₹ 50 lakh )
Provision (> ₹ 50 lakh)
( 59 cases under 27 (30 cases in 17 grants ) (92 cases in
grants) 36 grants)

Original Provision: Original Provision:

Original Provision: ₹13,863.66 crore
₹10,846 crore ₹13,347.88 crore
Expenditure: Expenditure: ₹25,398.76
Expenditure: ₹9,052 crore crore
₹ 20,397.10 crore

Suplementary Provision Supplementary Supplementary Provision

(> ₹ 50 lakh cases) : Provision (>₹10 crore (>₹ 50 lakh cases) :
cases) : ₹7,711.76 crore
₹441 crore ₹8,048.29 crore
Unspent provision :₹1,794 Excess expenditure
crore. Hence entire Unspent provision
supplementary provision (> ₹10 crore cases) : (> ₹10 crore cases :
proved unnecessary ₹999.07 crore ₹3,823.34 crore
(Appendix 3.2(a)) (Appendix 3.2(b)) (Appendix 3.3)

From the above, it was noticed that there were instances where supplementary
provision provided were unnecessary as original provisions were enough to take
care of the expenditure. Further, it was also noticed that under certain heads of
accounts, the total provision including supplementary provision was insufficient
resulting in excess expenditure.
3.5.1.5 Unnecessary/excess/insufficient re-appropriation of funds
Apart from supplementary grant, re-appropriation can be used to re-allocate
funds within a Grant. Re-appropriation is the transfer, by competent authority,
of savings from one unit of appropriation to meet additional expenditure under
another unit within the same section (Revenue-Voted, Revenue-Charged,
Capital-Voted, Capital-Charged) of the Grant or Charged Appropriation.
However, considerable re-appropriation from one sub-head to another must
always be avoided and the process of re-appropriation should not be merely
used to rectify omissions and lack of foresight.

Audit scrutiny revealed that there were unnecessary / excess / insufficient

re-appropriations made indicating inaccurate and unrealistic budgeting, thereby
depriving funds for the other needy Schemes as detailed in Table 3.8.

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Table 3.8: Injudicious re-appropriations made during 2022-23

Amount Reference
Sl No. of Suppleme Re- FMA
Description Original – Appendix
No HoA ntary appropriation (O+S+R)
No.
(₹ in crore)

I Excessive/Insufficient re-appropriation of funds

Savings greater
1 50 42,357.27 584.73 (-) 14,49.37 41,492.63 2,014.74 3.4
than ₹2 crore

Excess greater
2 25 31,503.01 0 4,797.02 36,300.04 427.04 3.4
than ₹2 crore

II Unnecessary re-appropriation of funds

Provision made
in re-
appropriation
where
expenditure was
3 17 154.56 6.17 11.06 171.78 11.06 3.5
either nil or
within the
original and
supplementary
provisions
III Injudicious re-appropriation of funds
Provision of
more than ₹ 100
crore fully
4 24 12,461.23 0 (-) 12,461.23 0 12,461.23 3.6
withdrawn
through re-
appropriation
Withdrawal of
entire provision
of interest
5 liability (2049- 9 29.09 0 (-) 29.09 0 29.09 3.7
60-101) on
deposits under
MH 8342
Expenditure
incurred without
6 14 1,718.41 0.00* (-) 1,718.41 0 141.98 3.8
Final Modified
Appropriation
*Token provision of ₹10,000
(Source: Detailed Appropriation Accounts for the year 2022-23)

Under six heads of account as detailed in Table 3.9, only token provisions were
made in supplementary estimate. An additional provision to the tune of ₹107.08
crore were made in first re-appropriation and the entire provision was
subsequently withdrawn in second re-appropriation. However, an expenditure
of ₹59.52 crore was incurred under these heads of account without any
provision. Further scrutiny revealed that expenditure was incurred during March
2023 in respect of Sl.No.1 and for items under Sl. No. (2) to (6) during October
2022 and February 2023. The withdrawal of entire provision during second re-

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

appropriation in March 2023, had resulted in expenditure without Final

Modified Appropriation (FMA).
Table 3.9: Injudicious re-appropriations made under Schemes where token provision
made in supplementary
(₹ in lakh)
Sl Supple- Supple- Provision in supplementary Re-Appro- Re- Appro- Actual
Grant Head of Account
No. mentary I mentary II estimates priation I priation II Expenditure
Token provision made
towards Grants to 28 newly
upgraded Municipalities
1. 34 2217.05.191.AJ 0.00 0.01 5,599.99 (-) 5,600.00 5,600.00
(Each 2 crore) for creation
of basic Infrastructure
facilities.
2. 05 2408.01.103.AD 0.01 0.00 Token provisions made 52.83 (-) 52.84 52.83
3. 05 2408.01.103.UA 0.01 0.01 Pradhan Mantri 3,993.03 (-) 3,993.05 245.76
Formalization of Micro
4. 05 2408.01.793.AA 0.01 0.00 Food Processing 1.13 (-) 1.14 1.14
5. 05 2408.01.793.UA 0.01 0.01 Enterprises Scheme in 1,010.88 (-) 1,010.90 45.18
Tamil Nadu during the year
6. 05 2408.01.794.UA 0.01 0.01 2022-2023 50.53 (-) 50.55 6.70
0.05 0.04 Total 10,708.39 (-) 10,708.48 5,951.61
(Source: Detailed Appropriation Accounts for the year 2022-23)

There are 63 instances where provisions to the tune of ₹483.76 crore were made
through the first re-appropriation and an amount of ₹502.63 crore including the
provision made in the Original/Supplementary estimates were subsequently
withdrawn in the second re-appropriation which resulted in ‘nil’ expenditure as
detailed in Appendix 3.9.

Thus, from the above, it is seen that there is a clear lack of procedure to ascertain
the necessity and quantum of re-appropriation leading to unnecessary
re-appropriations resulting in unnecessary savings / surrenders at the end of the
year.

Further, detailed scrutiny of all the re-appropriation orders issued by the Finance
Department revealed that in respect of 10,436 out of 25,204 items
(41.41 per cent), no valid reasons were given for additional provisions/
withdrawal of provisions and only vague expressions such as ‘actual
requirement’, ‘lesser/higher requirement’, ‘based on actuals’, etc., was given,
which is in violation of Paragraph 151 (ii)4 of the Tamil Nadu Budget Manual.

Thus, the injudicious re-appropriations at various stages and incurring

expenditure without provisions, clearly indicate the weak internal
controls/monitoring mechanism at both the budget allocation levels and at the

4
As per Paragraph 151(ii) of the Tamil Nadu Budget Manual, the reasons for
the additional expenditure and the savings should be explained clearly. Vague
expressions such as “based on actuals”, “based on progress of expenditure”,
etc, should be avoided.

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 Chapter III – Budgetary Management

re-appropriation stage. Hence, due to lack of procedure to ascertain the necessity

and quantum of re-appropriation has resulted in unnecessary
re-appropriations which in turn leads to unnecessary savings / surrenders at the
end of the year which is indicative of unrealistic budgeting.
3.5.1.6 Provision met only through re-appropriation of funds but ‘nil’
expenditure
In seven cases as detailed in Table 3.10, provisions were made only through
re-appropriation to the tune of ₹403.31 lakh, but no expenditure was made in
these schemes.

Table 3.10: Provision only by re-appropriation but nil expenditure

(₹ in lakh)
Sl. Provision made through
Grant No. Head of Account
No. Re-appropriation
1 04 2225.02.796.AE 190.00
2 16 7610.00.202.AA 7.28
3 16 7610.00.202.AB 3.11
4 16 7610.00.204.AA 2.14
5 41 2235.60.102.BL 0.16
6 47 2250.00.102.AC 200.56
7 54 2406.01.102.PF 0.06
Total 403.31
(Source: Appropriation Accounts for the year 2022-23)

Thus, unnecessary provisions were made in the re-appropriation without

ascertaining the actual requirement.
3.5.1.7 Unspent amount and surrendered appropriations and/or large
savings / surrenders
The golden rule for all the Estimating Officers should be to provide in the
budget, everything that can be foreseen and to provide only as much as is
necessary. For this reason, appropriations which are likely to remain unspent
must be reported for surrender as early as possible. If this is not done, other
spending Departments are deprived of the funds which they could have utilised.
Surrenders are being made generally in the month of March and a careful study
of figures of the expenditure incurred and watch over previous month’s
expenditure should enable the Controlling Officer to fix upon his final
requirements with a reasonable degree of exactness. No savings shall be held in
reserve for possible future excesses.

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

The instances of huge savings and surrenders are discussed in the succeeding
paragraphs.
(a) Grants having large savings during 2022-23.
Audit observed that in 34 cases, there were savings of above ₹100 crore
amounting to ₹33,183.15 crore across various grants as detailed in
Appendix 3.10. The details of Grants/Appropriations, where provision is more
than ₹10 crore, with Budget utilisation less than 50 per cent during the year is
given in Table 3.11.
Table 3.11: Grants/ Appropriations greater than ₹10 crore where utilisation of
budget was less than 50 per cent
(₹ in crore)
Sl. Total Percentage of
Grant Number and Description Expenditure
No. provision utilisation
Revenue
1 31 - Information Technology Department 199.20 90.03 45.20
53 - Department of Special Programme
2 56.05 6.15 10.97
Implementation
Capital
3 14 - Energy Department 581.24 57.99 9.98
4 16 - Finance Department 740.65 65.20 8.80
22 - Police (Home, Prohibition and Excise
5 200.00 73.17 36.59
Department)
6 43 - School Education Department 544.96 217.54 39.92
45 - Social Welfare and Nutritious Meal
7 54.04 23.26 43.04
Programme Department
Loans
8 14 - Energy Department 1,843.78 379.60 20.59
9 16 - Finance Department 128.97 57.08 44.26
22 - Police (Home, Prohibition and Excise
10 21.15 9.21 43.55
Department)
(Source: Appropriation Accounts for the year 2022-23)

It was noticed that utilisation was less than 10 per cent of the provision made in
two cases.
Details of grants grouped by the percentage of utilization along with the total
savings during 2022-23 has been shown in Exhibit 3.4.

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 Chapter III – Budgetary Management

Exhibit 3.4: The distribution of the number of Grants/Appropriations grouped by the

percentage of Savings along with the total savings

(₹ in crore)

25000 23099.68 35
30 30

Amount of Savings

Number of Grants
20000
25
15000 23 20
10456.05
10000 15
10
5000 1483.76
49.90 1 5
2
0 0
0-50 50-70 70-90 90-100

Percentage Utilization
Savings Number of grants

Thus, huge saving is indicative of defective budgeting as well as shortfall in

performance of Grant or Appropriation.
(b) Surrender of savings
As per Paragraph 140 of the Tamil Nadu Budget Manual, the spending
departments are required to surrender the grants/appropriations or a portion
thereof to the Finance Department as and when savings are anticipated.

During the year, out of total savings of ₹35,089.39 crore, an amount of

₹35,039.53 crore was surrendered. Out of the ₹13,320.27 crore (Net)
surrendered on the last day (31 March 2023) as detailed in Exhibit 3.5, 89 cases
amounting to ₹12,979.70 crore (Appendix 3.11) were in excess of over ₹10
crore indicating inadequate financial controls.

Further, in respect of surrender more than savings, the departments could not
know the exact amount of savings which is to be surrendered at the end of the
financial year during re-appropriation. Under 24 voted grants and one charged
appropriation, savings of more than ₹one crore amounting to ₹632.68 crore was
not fully surrendered as given in Appendix 3.12. In respect of seven
Grants/Appropriations under Revenue Account, 10 Grants under Capital
Account and three Grants under Loan Account, surrenders were made more than
the savings as listed in Appendix 3.13. This indicates that the Finance
Department has no proper control over the finances of the State even after the
implementation of IFHRMS.

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Exhibit 3.5 : Savings and surrenders for the year 2022-23

(₹ in crore)

Total Savings 35,089.39

Savings surrendered during 2022-23 35,039.53

Savings surrendered on 31 March 2023 13,320.27

0 10,000 20,000 30,000 40,000

(c) Budget Utilisation

The distribution of the number of grants / appropriations grouped by percentage
of utilisation and total savings in each group is given in Table 3.12 below:
Table 3.12: Utilisation of Grants / Appropriations

0 to 50 to 70 to- 90 to
Percentage utilisation
50 per cent 70 per cent 90 per cent 100 per cent
Number of Grants 1 2 23 30
Saving (₹ in crore) 49.90 1,483.76 23,099.68 10,456.05
(Source: Appropriation Accounts for the year 2022-23)

(d) Persistent Savings

Under 26 Grants/Appropriations, there were persistent savings of more than five
per cent of the total grant during the last five years as indicated in
Appendix 3.14. During 2022-23, the percentage of savings under Revenue
Section ranged from 5.85 per cent to 54.80 per cent and Capital Section ranged
from 8.51 per cent to 91.20 per cent respectively.

As may be noted from the Appendix 3.14, there was a persistent savings of
more than 91 per cent under Capital Section during all the past five years in
Grant 16 - Finance Department. It was noticed that under the Head of Account:
‘4070-00-800-KF – Transfer to Tamil Nadu Infrastructure Development Fund
(TNIDF)’, the huge amounts provided were either partially or fully withdrawn
through re-appropriation during the past nine years, as shown below
in Table 3.13.
Table 3.13: Provision and re-appropriation under Tamil Nadu Infrastructure
Development Fund
(₹ in crore)
Details 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Provision 2,000 2,000 2,000 2,000 500 500 500 500 500

Re-appropriation (-)2,000 (-)1,980 (-)1,970 (-)2,000 (-)499 (-)498 (-)500 (-)457 (-)500

(Source: Appropriation Accounts for the respective years)

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 Chapter III – Budgetary Management

It could be seen from the above table that the entire provisions were made
consistently during all the years in the original budget stage and withdrawn at
the re-appropriation stage. The above lapses were being continued despite being
pointed out by Audit in the previous year audit report for the year ending March
2022.

In reply (October 2023), the Tamil Nadu Infrastructure Development Board

(TNIDB) stated that the financial assistance for Infrastructure projects would be
considered only after approval of TNIDB and subsequent tendering of the
projects. They further stated that many of the projects were at preliminary stage
and the necessity for seeking finance assistance does not arise and the funds
were surrendered during the past years. The reply also stated that TNIDB would
seek funds from Government only after exhausting their funds.

It is evident from the reply that budget provision was being made every year
without ascertaining the actual requirement. The Government should consider
the previous year’s surrenders and estimate the actual requirement of transfer.
In such situations, Government could have made a token provision at the Budget
Estimate stage instead of making huge provisions.

Thus, improper budgeting without analysing the actual requirements had

resulted in excess provisions which led to subsequent withdrawal through Re-
appropriation thereby depriving the other schemes / departments for utilising it
during that year.
3.5.1.8 Excess expenditure and its regularisation
As per Article 205 (1) (b) of the Constitution of India, it is mandatory for a State
Government to get the excess over a grant/appropriation regularised by the State
Legislature. Although no time limit for regularisation of expenditure has been
prescribed under the above Article, the regularisation of excess expenditure is
done after the completion of discussion of the Appropriation Accounts by the
Committee on Public Accounts (PAC).
(a) Regularisation of excess expenditure
Excess expenditure of ₹2,854.07 crore relating to 2014-22 was yet (September
2023) to be regularised by the State Legislature as detailed below in Table 3.14.

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Table 3.14: Regularisation of excess expenditure of previous years

Amount of excess required
Grant
Year to be regularised Status of regularisation
No./Appropriation (₹ in crore)
(1) (2) (3) (4)
10, 16, 23,30, 32, 35, 36,
2014-15 78.55 Recommended by PAC for regularisation vide
40, 43, 45
82nd PAC Report placed in the Legislative
2015-16 19, 23, 30, 39, 47, 49 82.16 Assembly on 12 January 2023

2016-17 10, 12, 17, 21, 32, 39, 40 167.16 17 Grants and 6 Appropriations pertaining to
the years 2016-17, 2017-18 and 2018-19 were
06, 10, 13, 19, 21, 24, 40,
2017-18 77.55 taken up by PAC for consideration on
41, 52
20.09.2023 and PAC’s recommendations are
2018-19 10, 15, 27, 37, 40, 42, 43 1,480.54 yet to be received.
Explanatory notes for two grants (13 & 43)
2019-20 13, 40, 41, 43, 48 942.00
have not been received.
Explanatory Notes has been received for the
2020-21 27 20.87 Grant and yet to be taken up for consideration
by PAC.
Explanatory Notes have not been received for
2021-22 34, 35, 44, 51 5.24
all the four Grants.
Total 2,854.07
(Source: Appropriation Accounts)
During the year 2022-23, an excess amount of ₹0.50 lakh had been incurred in
Grant No. 51 – Relief on account of natural calamities under Revenue section
(charged) due to mis-classification. Further, incurring expenditure in excess of
provision without regularisation in the legislature is in violation to Article 205
(1) (b) of the Constitution of India.
3.5.2 Comments on effectiveness of budgetary and accounting process
3.5.2.1 Budgetary projection and gap between expectations and actuals
Efficient management of tax administration/other receipts and public
expenditure holds the balance for achievement of various fiscal indicators.
Budgetary allocations based on unrealistic proposals, poor expenditure
monitoring mechanism, weak scheme implementation capacities/ weak internal
controls lead to sub-optimal allocation among various developmental needs.
Excessive savings in some departments deprive the funds of other departments,
which they could have utilised.
Summarised position of actual expenditure vis-à-vis Budget (Original/
Supplementary) provision during 2022-23 (Voted and Charged) is given below
in Table 3.15.

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 Chapter III – Budgetary Management

Table 3.15: Actual expenditure vis-à-vis original/supplementary provisions

(₹ in crore)
Percentage
Original Supplementary Amount
Nature of Actual Net Saving Amount of savings
Grant/ Grant/ Total surrendered
expenditure Appropriation Appropriation
expenditure (-) surrendered surrendere
on 31 March d

(9) = ((7)/(6)) x
(1) (2) (3) (4) (5) (6) (7) (8) 100

Voted
I Revenue 2,36,831.52 21,306.73 2,58,138.24 2,36,906.17 (-) 21,232.07 (-) 21,077.90 (-) 10,035.41 99.27

II Capital 43,067.80 5,201.19 48,269.00 39,548.12 (-) 8,720.88 (-) 8,758.44 (-) 2,746.43 100.43

III Loans and

6,019.61 3,218.03 9,237.63 7,260.82 (-) 1,976.81 (-) 1,975.57 (-) 277.20 99.94
Advances
Total Voted 2,85,918.93 29,725.95 3,15,644.87 2,83,715.11 (-) 31,929.75 (-) 31,811.91 (-) 13,059.04 99.63

Charged

IV Revenue 51,055.43 191.88 51,247.31 48,122.62 (-) 3,124.69 (-) 3,192.73 (-) 249.57 102.18

V Capital 5.00 230.87 235.87 224.20 (-) 11.67 (-) 11.66 (-) 11.66 99.91

VI Public Debt-
27,127.67 0.00 27,127.67 27,104.39 (-) 23.28 (-) 23.23 0.00 99.79
Repayment
Total -
78,188.10 422.75 78,610.85 75,451.21 (-) 3,159.64 (-) 3,227.62 (-) 261.23 102.15
Charged
Appropriation to
Contingency
Fund (if any)

Grand Total 3,64,107.03 30,148.70 3,94,255.72 3,59,166.32 (-) 35,089.39 (-) 35,039.53 (-) 13,320.27 99.86

(Source: Appropriation Accounts for the year 2022-23)

The following Exhibit 3.6 shows the Budget utilisation for the period from
2018-19 to 2022-23.
Exhibit 3.6: Budget Utilisation during 2018-19 to 2022-23
450000 92.60 90.60 91.31 91.10 100.00
86.66
Budget Allocation (₹ in crore)

400000

Budget Utilisation %
350000 80.00
300000
60.00
250000
200000
3,49,740
2,88,353

3,38,972

40.00
3,94,256
2,67,993

150000
100000 20.00
50000
0 0.00
2018-19 2019-20 2020-21 2021-22 2022-23

Year
Budget (O+S) (₹ in crore) Budget Utilization (%)

(Source: Appropriation Accounts for the year 2022-23)

The percentage of utilisation decreased marginally by 0.21 per cent during the
current year and stood at 91.10 per cent.

A summarised position of total budget provision, disbursement and

saving/excess in 54 Grants and two appropriations with its further bifurcation
into voted/charged during the year 2022-23 is given below in Table 3.16.

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Table 3.16: Summarised position of Budget

(₹ in crore)
Total Budget Provision Disbursements Savings (-) Excess (+)

Voted Charged Voted Charged Voted Charged Voted Charged

3,15,644.88 78,610.85 2,83,715.11 75,451.22 (-) 31,929.76 (-) 3,159.64 -- --*

* ₹ 0.50 lakh: This excess happened due to misclassification of a Voted expenditure under
Grant 51 - 2245-80-800-AH as Charged expenditure under 2245-02-101-AB.
(Source: Appropriation Accounts for the year 2022-23)

The overall savings seen from above works out to ₹35,089 crore. It is also
pertinent to mention here that the actual receipt in the Consolidated Fund is
₹11,685 crore less than the budgeted receipt, and the actual expenditure is
₹6,519 crore less than the budgeted expenditure. This had led to an excess
expenditure of ₹7,929 crore, which was met from the Public Account. The
savings worked out here as ₹35,089 crore is actually a notional savings, which
had happened due to unnecessary supplementary budget.

An amount of ₹35,039.52 crore was surrendered in the month of March 2023.

Out of this, an amount of ₹13,320.27 crore (38.01 per cent) was surrendered on
the last day i.e., 31 March 2023 as discussed in Para 3.5.1.7(b). This indicates
lack of effective budgeting and expenditure planning.

Trends in expenditure during the past five years with reference to the Original
Budget and Revised Estimate are given below in Table 3.17.
Table: 3.17: Trend of Total Budget, Revised Estimate and Actual Expenditure during 2018-23
(₹ in crore)
2018-19 2019-20 2020-21 2021-22 2022-23
Original budget 2,43,847.26 2,68,501.58 3,04,954.44 3,35,288.14 3,64,107.02
Supplementary budget 24,146.16 19,851.68 34,018.02 14,451.49 30,148.70
Total Budget (TB) 2,67,993.42 2,88,353.26 3,38,972.45 3,49,739.63 3,94,255.72
Revised Estimate (RE) 2,48,360.08 2,70,255.50 3,29,034.84 3,20,375.66 3,48,450.41
Actual Expenditure (AE) 2,48,170.03 2,61,259.86 2,93,753.73 3,19,361.82 3,59,166.33
Savings (-) 19,823.39 (-) 27,093.40 (-) 45,218.72 (-) 30,377.81 (-) 35,089.39
Percentage of
supplementary to the 9.90 7.39 11.16 4.31 8.28
original budget
Percentage of overall
savings/excess to the 7.40 9.40 13.34 8.69 8.90
overall provision
TB-RE 19,633.34 18,097.76 9,937.61 29,363.97 45,805.31
RE-AE 190.05 8,995.64 35,281.11 1,013.84 (-) 10,715.92
(TB-RE) as % of TB 7.33 6.28 2.93 8.40 11.62
(RE-AE) as % of TB 0.07 3.12 10.41 0.29 (-)2.72
(Source: Appropriation Accounts for the respective years and Annual Financial Statements)

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 Chapter III – Budgetary Management

Table 3.17 shows that supplementary provision of ₹30,148.70 crore during

2022-23 constituted 8.28 per cent of the original provision as against 4.31
per cent during previous year.

Exhibit 3.7: Trend showing TB, RE and AE

500000
394255.72
338972.45 349739.63
400000 288353.26
359166.33
267993.42
300000
₹in crore

348450.41
293753.73
319361.82
261259.86
200000 329034.84
248360.08 248170.03 270255.50 320375.66

100000

0
2018-19 2019-20 2020-21 2021-22 2022-23

Total Budget (TB) Revised Estimate (RE) Actual Expenditure (AE)

From the above table, it could be seen that during the years from 2018-19 to
2022-23, the revised estimate was lower than the total budget of the State. The
gap between the total budget and revised estimate showed a declining trend
during the first three years (2018-19 to 2020-21) and then increase sharply
during the next two years (2021-22 and 2022-23). The widening of gap between
revised estimate and total budget indicate large estimation error.

Further, the actual expenditure during 2022-23 was higher than revised estimate
whereas the actual expenditure became lower than revised estimate during the
years 2018-19 to 2021-22 as shown in Exhibit 3.7. The gap between revised
and actual expenditure showed an increasing trend from 2018-19 to 2020-21
and then marginally decreased during 2021-22. During 2022-23, the gap turned
negative and stood at ₹ (-)10,715.92 crore.

The supplementary provisions during 2019-20 to 2022-23 proved unnecessary

since the actual expenditure did not come up even to the level of Original budget
provision. These reflects inefficiencies in preparation of realistic budget
estimates.

Out of 4,900 Sub-Heads, a total of 1,423 sub heads were commented in the
Appropriation Accounts of the State. The reasons for variation in savings/excess
were received for 1,196 sub-heads only as detailed in Exhibit 3.8.

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Exhibit 3.8: Explanation for variation in Appropriation Accounts

No.of sub-heads for which replies

1,196
were received

In numbers
No.of sub-heads included in
1,423
Appropriation accounts
Total Sub-Heads 4,900

0 1000 2000 3000 4000 5000 6000

Number of Sub-heads
3.5.2.2 Major policy pronouncements in budget and their actual
funding for ensuring implementation
The State Government made several schemes/policies and announcements
during 2022-23 budget. From the analysis of State Budget 2022-23, it was seen
that some of the announcements during budget did not translate as financial
provision in budget and in respect of some other schemes, the provisions were
fully or partially remained unutilised. The ‘free bus travel for women’ scheme
for the empowerment of women attracted the attention of public, especially the
attention of low-income categories; for which only the provision was fully
utilised under flagship schemes.

On test check of major policy highlights and various schemes implemented, the
following observations were made in Table 3.18.

Table 3.18: Analysis of major budget pronouncements during 2022-23

(₹ in crore)
Sl Outlay announced in Amount provided Amount
Grant No Name of the Scheme
No the Budget speech in BE/RE spent

I- Announcement did not translate into budget provision

Construction of Buildings for
1 45 Integrated Training Centre for 27.00 0.00 0.00
Social Empowerment
II- Budget provision was withdrawn in full
2 27 Export Promotion Fund 100.00 100.00 0.00
3 16 Investment Fund for Startups 50.00 50.00 0.00
4 54 Nilgiris Tahr Project 10.00 10.00 0.00
III- Budget provision was short of announcement
Jal Jeevan Mission (Erstwhile
5 42 National Rural Drinking Water 3,000.00 915.04 915.04
Programme)
Housing For All - Pradhan Mantri
6 26 Awaas Yojana (Urban)
3,700.00 1,252.58 1,252.58
Anaithu Grama Anna
7 42 Marumalarchi Thittam
1,455.00 250.00 334.47

Reconstruction and Repairs of

8 42 190.00 45.55 67.01
Samathuvapurams

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 Chapter III – Budgetary Management

Sl Outlay announced in Amount provided Amount

Grant No Name of the Scheme
No the Budget speech in BE/RE spent

IV- Expenditure was meagre in comparison with announcement

Moovalur Ramamirtham
Ammaiyar Girl children
9 45 698.00 697.78 104.06
Higher Education Guarantee
Scheme
Grants to Tamil Nadu
10 49 25.00 25.00 1.00
Olympic Gold Quest
(Source: Tamil Nadu Budget’ 2022-23 and Appropriation Accounts’2022-23)

Thus, the above instances of provisions fully /partly withdrawn and incurring
meagre expenditure indicate non-fulfilment of promises made in the budget
speech.
3.5.2.3 Rush of expenditure
Government funds should be evenly spent throughout the year. The rush of
expenditure towards the end of the financial year is regarded as a breach of
financial propriety. Maintaining a steady pace of expenditure is a crucial
component of sound public management, as it obviates fiscal imbalance and
temporary cash crunches due to mismatch of revenue expenditure during a
particular month arising out of unanticipated heavy expenditure in that
particular month.

According to Article 39 of the Tamil Nadu Financial Code, rush of expenditure

in the closing month of the financial year should be avoided. Contrary to this,
an amount of ₹3,802.84 crore under 101 sub-heads for which provision was
made in the original grant, as listed in Appendix 3.15 was fully expended during
the month of March 2023. Besides, in respect of one grant listed below in Table
3.19, more than 50 per cent of expenditure was incurred in the month of March
2023. Rush of expenditure at the end of the year shows poor management of
expenditure and control.
Table 3.19: Grant with more than 50 per cent of expenditure in March alone
(₹ in crore)
Expenditure in
March as
Sl. Grant st nd rd th Expenditure
Description 1 Qtr 2 Qtr 3 Qtr 4 Qtr Total percentage of
No No. in March Total
Expenditure

Dairy Development
(Animal Husbandry,
1. 08 Dairying and 17.57 21.59 23.69 286.34 349.19 180.79 51.77
Fisheries
Department)
(Source: Compilation from VLC data)

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

The following Exhibit 3.9 showing the monthly receipts and expenditure during
the year 2022-23 is given below:

66,907.26
Exhibit 3.9: Month-wise Revenue Receipts and Expenditure
70,000

60,000

39,570.88
37,759.05
50,000

32,918.10
31,124.46

29,378.14
28,545.49
(₹ in crore)

27,004.20

26,820.02
40,000

24,441.69

21,557.68
20,899.34

20,599.00
20,331.47

20,225.71
18,599.88

18,482.87
17,781.76

17,456.91

17,298.27
15,541.06

15,560.66

15,123.05
30,000
13,682.01
20,000

10,000

Receipts Payments

(Source: Compilation from VLC data)

3.6 Advances from the Contingency Fund

The Contingency Fund (CF) of the State was established under the Tamil Nadu
Contingency Fund Act, 1954 in terms of provisions of Article 267 (2) and 283
(2) of the Constitution of India. Advances from the Fund are to be made only
for meeting expenditure of an unforeseen and emergent character,
postponement of which, till its authorisation by the Legislature, would be
undesirable. The Fund is in the nature of an imprest and its corpus is ₹150 crore.

Details of sanctions accorded for drawal of CF advance and actually utilised

during the period 2018-19 to 2022-23 are given in Table 3.20 below.
Table 3.20: Details of Contingency Fund advances sanctioned (2018-19 to 2022-23)
Sanction of CFA Utilisation of CFA Percentage of utilisation
Year Amount Amount
No. No. No. Amount
(₹ in crore) (₹ in crore)
2018-19 35 64.15 33 46.95 94 73
2019-20 30 40.01 27 33.69 90 84
2020-21 20 55.10 16 31.61 80 57
2021-22 04 17.15 03 12.26 75 71
2022-23 23 75.34 22 70.42 96 93
(Source: Government Orders)

Details of CF orders issued during the year, and the amount of expenditure
incurred as at the end of the year is given in Appendix 3.16. From the

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 Chapter III – Budgetary Management

Appendix 3.16, it can be noticed that one CF was unutilised and eight CFs were
partially utilised.

Out of the sanctioned amount of ₹75.34 crore under 23 CFs during the year,
only an amount of ₹70.42 crore was spent leaving an unspent balance of
₹4.92 crore.

3.7 Outcome of review of selected grants

As per Paragraph 3.20 of the Financial Attest Audit Manual, Audit should
conduct a comprehensive review of at least two Grants every year. The Grants
for such review were selected on the basis of substantial persistent savings/
excesses/other irregularities disclosed in past appropriation accounts. Grants
which had persistent savings for the past five years were considered, out of
which, the grants having huge savings were selected for review. Audit sampled
the Directorate of Collegiate Education and Directorate of Technical Education
under Higher Education Department (Grant 20) and Tourism – Art and Culture
(Tourism, Culture and Religious Endowments Department (Grant 29) to
examine the quality of budgeting and budget execution during 2022-23.
3.7.1 Higher Education Department
3.7.1.1 Allocation and Expenditure
A summary of actual expenditure vis-à-vis original/supplementary provisions
made during the year 2022-23 is given in Table 3.21 below.
Table 3.21: Details of Budget Provision and Actual Expenditure under Grant No. 20
(₹ in crore)

Supple- Expendi- Savings(-) Percentage Amount

Nature of expenditure Original Total
mentary ture /Excess (+) of savings surrendered

I Revenue 5,285.30 316.3 5,601.60 5,284.95 (-) 316.65 5.65 (-) 309.76
Voted II Capital 383.59 3.00 386.59 214.1 (-) 172.49 44.62 (-) 172.49
III Loan -- 0.19 0.19 0.19 -- 0 0
Total Voted (A) 5,668.89 319.49 5,988.38 5,499.24 (-) 489.14 8.17 (-) 482.25

Charged IV Revenue 0.00* 0 0.00* 0 0.00* 100 0.00*

V Capital 0.00* 0 0.00* 0 0.00* 100 0.00*

Total Charged (B) 0 0 0 0 0 100 0

Grand Total (A+B) 5,668.89 319.48 5,988.38 5,499.24 (-) 489.14 8.17 (-) 482.25
* ₹2,000 token provision each under Revenue and Capital
(Source: Appropriation Accounts for the year 2022-23)

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Though the ultimate savings in the grant during the year was ₹489.14 crore, the
amount surrendered was ₹482.25 crore only. The savings stood at 8.17 per cent.
During 2018-23, the Department had not utilised an average of 8.6 per cent of
its budget grants as shown in Table 3.22
Table: 3.22: Last 5 years allocation and savings
(₹ in crore)
Percentage of
Year Total grant Expenditure Saving
saving
2018-19 4,758.74 4,504.59 (-) 254.16 5.34
2019-20 5,045.42 4,880.43 (-) 164.98 3.27
2020-21 5,422.79 4,761.44 (-) 661.36 12.20
2021-22 5,443.56 4,719.89 (-) 723.67 13.29
2022-23 5,988.38 5,499.23 (-) 489.14 8.17
Total 26,658.88 24,365.58 (-) 2,293.30 8.6
(Source: Appropriation Accounts for the respective years)

Even as the overall savings under the Grant stood at 8.17 per cent, the savings
under capital heads stood at 44.62 per cent. Against ₹386.59 crore provided in
Grant 20 towards capital expenditure, only ₹214.10 crore was incurred, leaving
a savings of ₹172.49 crore. Further, the savings under capital heads stood above
40 per cent during the last three years, which pointed to lapses mainly in
carrying out civil works for Government colleges. The unutilised budget
provisions for capital works in Higher Education Department during 2018-23
was ₹566.21 crore as given in Table 3.23.
Table 3.23: Year-wise allocation and savings under Capital section
(₹ in crore)
Total Expenditure Amount Percentage
Year Saving
grant incurred surrendered of saving
2018-19 378.24 339.61 (-) 38.63 (-) 45.51 10.21
2019-20 245.17 198.21 (-) 46.95 (-) 47.15 19.15
2020-21 270.39 138.22 (-) 132.17 (-) 131.98 48.88
2021-22 348.62 179.54 (-) 169.08 (-) 169.08 48.50
2022-23 386.59 214.10 (-) 172.49 (-) 172.49 44.62
(Source: Appropriation Accounts for the respective years)

Persistent savings in the budget and more importantly under capital heads
indicated poor budgeting and implementation of the budget.

An analysis of reasons for the poor performance in budget management

disclosed the following:
 The additional grant of ₹50 crore earmarked for Anna University during
2022-23 was not released for want of certificate for reimbursement from
the Local Fund Audit.

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 Chapter III – Budgetary Management

 Foreign Technical Training Programme for diploma students was not

conducted and led to non-utilisation of ₹1.50 crore provided therefor. In
reply, the Director of Technical Education (September 2023) had stated
that the training programmes was not conducted during 2022-23 as the
foreign countries had banned issuance of visa to students during the year.
The reply was not factually correct, as per the Ministry of External
Affairs data, the number of students migrated to foreign countries for
higher studies showed an increase of 68.79 per cent during 2022-23
when compared to that of previous year.
 Block Grant amount of ₹85.20 lakh was not released to Avinashilingam
Institute for Home Science and Higher Education for Women,
Coimbatore by the Directorate due to procedural issues.
 An amount of ₹1 lakh provided for educational concessions under the
control of the Director of Technical Education could not be utilised
(during 2014-23) as no application had been received from any students
during the years.
 Government sanctioned (October 2022), ₹5.20 crore to procure
laboratory equipment in respect of 62 Arts and Science Colleges. The
token provision of ₹2,000 was increased to ₹5.20 crore at
re-appropriation-I for the above purchase. However, the entire Final
Modified Grant of ₹5.20 crore was withdrawn during re-appropriation-
II due to delay in issuance of purchase order on account of delays in
selection of vendors. Incidentally, it is pertinent to note that the
department had also surrendered funds provided for the purchase during
earlier years from 2017-18 to 2021-22. Thus, repeated surrender of funds
provided for purchase of laboratory equipment for 62 Arts and Science
Colleges established the inefficiency of the Department in utilising the
budget provision and 62 colleges remaining deprived of new laboratory.
On being pointed out by Audit, the Department admitted the fact that the
amount had not been utilised during 2017-18 to 2022-23 and also replied
that proposal had been submitted in June 2023 to release an amount of
₹5.20 crore for payment to vendors.
 GoTN provided ₹698 crore for the implementation of a scheme viz.,
Moovalur Ramamirtham Ammaiyar Higher Education Assurance
Scheme to provide cash benefit of ₹1,000 per month to Government
school girl students who enrol in undergraduate degrees, diploma and
ITI courses. However, it was observed that only ₹100.11 crore (14 per
cent of the budget allocation) was utilised during 2022-23 and ₹598
crore was surrendered at re-appropriation stage due to non-identification
of estimated number of beneficiaries. Audit observed that there was
huge gap between the budget provision and the actual expenditure due

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

to non-identification of beneficiaries indicating tardy implementation of

the scheme. On being pointed out by Audit, the Commissioner of Social
Welfare Department replied (December 2023) that the enumeration of
beneficiaries for the scheme was made initially for 4.36 lakh
beneficiaries, subsequently, it was reduced to 1.99 lakh girls studied in
Government school alone based on the details furnished by the
Department of School Education and hence major provision was
surrendered. It was also stated that during 2023-24, on an average ₹26
crore would be utilised. But, the fact remains that during 2022-23 the
budget provision was made without proper enumeration.
3.7.1.2 Rush of expenditure under Higher Education Department
Three instances of rush of expenditure under Grant No.20 indicated in
Appendix 3.15 from Sl.No. 24 to 28.
 An amount of ₹48.15 crore towards ‘Grants for implementation of
Rashtriya Uchhatar Siksha Abhiyan (RUSA)’ was released in March
2023. The State Project Director/ RUSA attributed the rush of
expenditure to delay in submission of proposals for release of central
share.
 An amount of ₹2.25 crore was released to Anna University on 29 March
2023 due to delayed sanction of a project viz., ‘Development of Semi
and Fully Automated Intelligent Exo-Skeletel and Prosthetics for
Disabled Communities’ under State Innovation Fund’.
 The amount of ₹6.63 crore provided towards ‘Assistance to Post
Graduate Students’, was utilised only during March 2023 due to delayed
sanction consequent on delayed selection of eligible candidates.
3.7.2 Tourism – Art and Culture (Tourism, Culture and Religious
Endowments Department)
3.7.2.1 Allocation and Expenditure
A summary of actual expenditure incurred under Grant No.29, vis-à-vis
original/ supplementary provisions made during the year 2022-23 is given in
Table 3.24 below:

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 Chapter III – Budgetary Management

Table 3.24: Details of Budget Provision and Actual Expenditure under Grant No. 29
(₹ in crore)
Nature of Supple- Expendi- Savings(-)/ Percentage Amount
Original Total
expenditure mentary ture of savings surrendered
Excess (+)
I Revenue 149.64 25.96 175.59 165.56 10.03 5.71 (-) 9.66
Voted II Capital 95.73 49.41 145.14 84.64 60.51 41.69 (-) 60.51
III Loan 0.69 0.56 1.25 1.25 0 0 0
Total Voted (A) 246.06 75.93 321.98 251.45 70.54 21.91 (-) 70.16
Charged IV Revenue 0.00* 0 0.00* 0 0.00* 100 0.00*
Total Charged (B) 0 0 0 0 0 100 0
Grand Total (A+B) 246.06 75.93 321.98 251.45 70.54 21.91 (-) 70.16
* ₹7,000 token provision
(Source: Appropriation Accounts for the year 2022-23)

Though the ultimate saving in the Grant during the year was ₹70.54 crore, the
amount surrendered was ₹70.16 crore only. The overall savings was 21.91
per cent of the provision. Overall savings in the Grant as compared to budget
provision during the past five years is shown in Table 3.25:
Table: 3.25: Last 5 years allocation and savings
(₹ in crore)
Percentage
Year Total grant Expenditure Savings
of saving
2018-19 179.36 141.50 (-) 37.85 21.11
2019-20 349.54 189.65 (-) 159.89 45.74
2020-21 362.66 277.98 (-) 84.68 23.35
2021-22 202.43 179.87 (-) 22.57 11.15
2022-23 321.98 251.45 (-) 70.54 21.91
TOTAL 1,415.99 1,040.45 (-) 375.53 26.52
(Source: Appropriation Accounts for the respective years)

On an average, 26.52 per cent of the budget provision made during 2018-23
remained unutilised. This ranged from 11.15 per cent to 45.74 per cent of
budget provision during the five-year period.
3.7.2.2 Persistent Savings under capital heads
During 2022-23, there was a saving of 41.69 per cent in the Grant under Capital
Section. During the five-year period 2018-23, the Department had persistent
savings ranging between 16.40 per cent and 69.40 per cent of the total grant and
44.48 per cent of the provision allocated for creation of capital assets remained
unspent during 2018-23 as given in Table 3.26 below:

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Table 3.26: Year-wise allocation and savings under Capital section

(₹in crore)
Expenditure Percentage
Year Total grant Saving
incurred of saving
2018-19 62.55 29.21 (-) 33.33 53.29
2019-20 197.84 60.55 (-) 137.29 69.40
2020-21 206.88 150.23 (-) 56.65 27.38
2021-22 54.76 45.78 (-) 8.98 16.40
2022-23 145.14 84.64 (-) 60.51 41.69
Total 667.17 370.41 (-) 296.76 44.48
(Source: Appropriation Accounts for the respective years)

Reasons for major instances of unspent budget provisions are discussed below:
 In August 2021, through the Hon’ble Governor’s address in the
Legislature, GoTN proposed to restore and renovate ‘Sarjah Madi at
Thanjavur’, ‘Danish Fort at Tarangambadi’ and ‘Tirumalai Nayak
Mahal at Madurai’. GoTN issued Administrative Sanction in February
2022 to execute the project at a cost of ₹16.93 crore, and provided
₹17.13 crore in Budget Estimate 2022-23 (4202.04.800.KH). The work
was entrusted to Public Works Department. Due to abnormal delays in
preparation of detailed estimate and tendering, ₹16.33 crore sanctioned
in the budget was surrendered. Thus, the work originally proposed in
2021 could not make significant progress even as of March 2023, despite
availability of funds.
 In September 2021, the Hon’ble Chief Minister announced a project in
the State Assembly to establish “Porunai Museum” in Tirunelveli to
showcase the artefacts collected at Aditchanallur, Korkai and Sivakalai.
The Department sought and obtained a provision of ₹18 crore in Budget
Estimate/Revised Estimate 2022-23 (4202.04.106.KE). Another sum of
₹20.52 crore was provided under State Infrastructure and Amenities
Fund (4202.04.106.KC). During 2022-23, only ₹10.92 crore was
utilised for the preparation of detailed project report in March 2023 and
the remaining provision of ₹27.59 crore was surrendered as the tenders
were not finalised even as of March 2023.
Audit observed that in both the above cases, the Department was not prompt in
assessing actual requirement based on the status of the projects, leading to
provision of funds in the budget which were surrendered at the fag end of the
year or remained unspent. Audit also observed that incorrect budgeting without
due regard to the status of the project had also resulted in non-availability of
this fund for use by other needy departments.

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 Chapter III – Budgetary Management

3.8 Conclusion
Gender Budgeting
Non-formation of Gender Budget Cells in line departments contributed to non-
preparation of Gender Budget Statement in a holistic manner by carrying out
proper gender analysis of all schemes in all sectors.
(Paragraph 3.3)
Expenditure without provision in Original and Supplementary
In eight cases, a total expenditure of ₹40.09 lakh was incurred irregularly
through re-appropriation without provision of funds either in Original or
Supplementary stage.
(Paragraph 3.5.1.1)
Unnecessary or excessive Supplementary grant/re-appropriations
Supplementary provisions aggregating to ₹441 crore in 59 cases proved
unnecessary as the original provision was not exhausted.
In respect of 17 Heads of Account, though an amount of ₹160.72 crore was
available (Original and Supplementary), an additional amount of ₹11.06 crore
was provided at re-appropriation stage which was unnecessary as the total
expenditure in these cases were only ₹146.69 crore and well within the earlier
provisions made.
In 14 cases, though the entire provision was fully withdrawn by re-
appropriations, expenditure of ₹141.98 crore was incurred under the schemes,
indicating injudicious re-appropriations.
In 24 cases across 9 Grants/Appropriation, an amount of ₹12,461.23 crore
provided in original budget was fully withdrawn by re-appropriation during the
year 2022-23. Withdrawal of the entire amount provided for not only indicates
inaccurate budgeting, but also deprives the other departments of the funds
required.
(Paragraphs 3.5.1.4 and 3.5.1.5)
Unspent amount, surrendered appropriations and persistent savings
In 34 cases, there were savings of above ₹100 crore amounting to ₹33,183.15
crore across various grants.
An amount of ₹13,320.27 crore (net) was surrendered on the last day (31 March
2023) out of which 89 cases amounting to ₹12,979.70 crore were in excess of
over ₹10 crore indicating inadequate financial controls.
Under 26 Grants/Appropriations there were persistent savings of more than five
per cent of the total grant during the last five years. There was a persistent
savings of more than 91 per cent under Capital section during all the past five
years in Grant 16 -Finance Department.
(Paragraph 3.5.1.7)

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Regularisation of excess expenditure of previous years

Excess expenditure of ₹2,854.07 crore relating to 2014-22 was yet to be
regularised.
(Paragraph 3.5.1.8)
Major policy pronouncements in budget and their actual funding for ensuring
implementation
Analysis of State Budget 2022-23, revealed that some of the announcements
made during budget did not translate as financial provision in budget and in
respect of some other schemes, the provisions were fully or partially remained
unutilised.
(Paragraph 3.5.2.2)
Rush of expenditure
An amount of ₹3,802.84 crore under 101 sub-heads for which provision was
made in the original grant and was available throughout the year was fully
expended only during the month of March 2023 against the provisions of Article
39 of the Tamil Nadu Financial Code directing that rush of expenditure in the
closing month of the financial year should be avoided. In respect of two grants
(Grant Nos. 8 and 51), more than 50 per cent of expenditure was incurred in the
month of March 2023.
(Paragraph 3.5.2.3)

3.9. Recommendations
(i) Gender Budget Cells should be formed in all departments so as to
identify all women oriented schemes and to prepare Gender Budget
Statement in a holistic manner.
(ii) Government should establish a proper control mechanism to ensure
that expenditure should not be incurred without provisions and
unnecessary supplementary provisions should not be made.
(iii) To enforce proper implementation and monitoring budget
mechanism to ensure that anticipated savings are identified and
surrendered within the specified timeframe so that the funds can be
utilised for other development purposes.
(iv) Government should ensure that adequate provisions were being
made for major policies /schemes announced in the Budget.
(v) Government should institute appropriate control mechanism to
avoid last minute surrender as well as rush of expenditure. It should
implement the Business Intelligence module of IFHRMS, for
continuous monitoring of the progress of expenditure.

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 CHAPTER IV
QUALITY OF ACCOUNTS &
FINANCIAL REPORTING
PRACTICES
 CHAPTER IV

QUALITY OF ACCOUNTS & FINANCIAL REPORTING

PRACTICES
A sound internal financial reporting system and compliance with relevant rules
and procedures contribute significantly to good governance. Compliance with
financial rules, procedures and directives as well as the timeliness and quality
of reporting on the status of such compliance is, thus, one of the attributes of
good governance. Reports on compliance and controls, if effective and
operational would assist the Government in meeting its basic stewardship
responsibilities including strategic planning and decision-making.
This chapter comments on the quality of accounts rendered by various
authorities of the State Government and issues of non-compliance with
prescribed financial rules and regulations by various departmental officials of
the State Government.
A. OBSERVATIONS RELATING TO COMPLETENESS OF
ACCOUNTS
4.1 Loans of State Government not being credited to the
Consolidated Fund
The borrowings of the State Government are governed by Article 293 (1) of the
Constitution of India. The State stood as guarantor for loans availed by
Government Companies/ Corporations/ Boards. These Companies/
Corporations/ Boards borrowed funds from the market/ financial institutions for
implementation of various State Plan programme projected outside the State
budget. The borrowings of these concerns ultimately turn out to be the liabilities
of the State Government termed ‘Off-Budget Borrowings’ (OBB). The trend of
OBB during 2018-19 to 2022-23 is detailed in Table 4.1.
Table 4.1: Entity-wise position of off-budget borrowings
(₹ in crore)
Name of the Agency 2018-19 2019-20 2020-21 2021-22 2022-23
Tamil Nadu Rural Housing and
Infrastructure Development 514.54 463.09 411.63 373.03 308.71
Corporation
Water and Sanitation Pooled Fund –
Tamil Nadu Urban Infrastructure 254.13 237.45 220.77 239.17 380.14
Financial Services Limited
Tamil Nadu Water Supply and Drainage
5.79 3.24 1.59 0.45 0.00
Board
Tamil Nadu Water Resources
0.00 0.00 34.43 629.31 1,609.69
Conservation and River Restoration
Total 774.46 703.78 668.42 1,241.96 2,298.54
(Source: Budget Document and Finance Accounts of the respective years)

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

The State’s OBB decreased marginally from 2019-20 to 2020-21 and increased
substantially during 2021-22 and 2022-23. During 2022-23, Government had
borrowed an amount of ₹1,184.69 crore and repaid an amount of ₹128.11 crore
towards OBB. (Para 2.6.1.1 of Chapter-II).
The recourse to Off-Budget Borrowings and the liabilities of the Government
to fully service such borrowings have significant impact on the fiscal health of
the State especially in such a case where the Government of Tamil Nadu has
been witnessing Revenue and Fiscal Deficits consistently over last five years.
Further, creating such liabilities without disclosing them in the Budget raises
questions both on transparency and completeness of accounts.

4.2 Non-discharge of liability in respect of interest towards

interest bearing deposits

The Government has a liability to provide and pay interest on the amounts in
Interest-bearing Deposits under the Major Head (MH) 2049-60-101 (Interest on
deposits) for discharging the liabilities under MH 8338 (Deposit of Local
Funds) and MH 8342 (Other deposits).
During the year 2022-23, the interest payments made in the MH 2049-60-101
(Interest on deposits) for discharging the liabilities under MH 8338 and
MH 8342 as per the State Finance Accounts was ₹139.53 crore which worked
out to 0.21 per cent of the deposits available under MH 8338 and MH 8342
(₹66,629.81 crore). Further, provisions made to the tune of ₹29.09 crore under
the Heads of Account ‘2049-60-101’ was entirely withdrawn by
re-appropriation during the year, thereby deferring the discharge of interest
liabilities towards these deposits (details in Appendix 3.7). Non-payment of
interest liability has resulted in understatement of Revenue Deficit and Fiscal
Deficit to that extent.

4.3 Funds transferred directly to State Implementing Agencies

(SIAs)

Government of India (GoI) transfers substantial funds directly to State

Implementing Agencies1 (SIAs) for implementation of various schemes and
Programmes. The details of Funds transferred by GoI directly to SIAs as per the
Public Financial Management System (PFMS) portal of the Controller General
of Accounts (CGA) is listed in Appendix VI of Volume-II of the State Finance
Accounts. Since these funds are not routed through the State Budget/State
Treasury System, State Finance Accounts do not capture the flow of these funds
or the related expenditure.

1 State Implementing Agency includes any organisation/institution including

non-Governmental Organisation which is authorised by the State Government to
receive the funds from the Government of India for implementing specific programmes
in the State.

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 Chapter IV–Quality of Accounts and Financial Reporting Practices

During the year 2022-23, GoI transferred ₹27,816.54 crore directly to the SIAs
for implementing various Central schemes / programmes.
As seen from GoIs data, the direct transfer of funds to various implementing
agencies has shown an increasing trend during the period 2018-23 as given in
Exhibit 4.1 with a substantial increase of ₹4,660.32 crore in the current year.

Exhibit 4.1: Direct transfer of funds to SIAs

30,000 27,816.54
27,000
23,156.22
24,000
21,000 18,226.43
(₹ in crore)

18,000 15,113.00
15,000 11,751.30
12,000
9,000
6,000
3,000
0
2018-19 2019-20 2020-21 2021-22 2022-23

(Source: State Finance Accounts of the respective years)

The details of SIAs that received funds of more than ₹100 crore during the year
2022-23 are detailed in Table 4.2.
Table 4.2: List of SIAs which received funds of more than ₹100 crore directly from GoI
Sl. Schemes of Government of India State Implementing Agency Amount
No released by GoI
during 2022-23
(₹ in crore)
(1) (2) (3) (4)
(a) Central Sector Schemes
Food Subsidy for Decentralised Tamil Nadu Civil Supplies
1 8,685.95
Procurement of Food grains under NFSA Corporation Limited
Pradhan Mantri Kisan Samman Nidhi
2 Department of Agriculture 1,607.44
(PM-KISAN)
Member of Parliament Local Area District Collectors of various
3 124.50
Development Scheme (MPLAD) districts, Tamil Nadu
(b) Centrally Sponsored Schemes
Mahatma Gandhi National Rural State Employment Guarantee
1 7,501.29
Guarantee Program Fund, Tamil Nadu
Jal Jeevan Mission (JJM) / National Tamil Nadu State Water and
2 872.96
Rural Drinking Water Mission Sanitation Mission
Ayushman Bharat – Pradhan Mantri Jan Tamil Nadu Health Systems
3 579.39
Arogya Yojana (PMJAY) Project
(Source: State Finance Accounts’2022-23)

As these funds were not routed through the State Budget/State Treasury System,
the Annual Finance Accounts did not capture these funds flow and to that extent,

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

the State’s receipt and expenditure as well as other fiscal variables/parameters

derived from them did not present the complete true and fair picture.
B. ISSUES RELATED TO TRANSPARENCY
4.4. Tax on electricity kept outside consolidated fund of the State

Non/short realisation of Electricity Tax by the State Government from

TANGEDCO and the amount being retained by TANGEDCO for a
period of four years is fraught with the risk of suspected temporary
misappropriation. Non-realisation of the dues in Government account
is also one of the contributing factors to revenue deficit of the State
Government.
Under Section 3 of Tamil Nadu Tax on Consumption or Sale of Electricity Act,
2003, TANGEDCO (Licensee under the Act) is to collect the electricity tax
along with energy charges and remit the tax into Government account. During
2019-23, Tamil Nadu Generation and Distribution Corporation (TANGEDCO)
collected ₹5,493.40 crore as Electricity tax from consumers, but remitted only
₹1,228.79 crore. The amount of electricity tax collected but not remitted into
the consolidated fund as of 31 March 2023 stood at ₹4,264.61 crore (Table 4.3).
GoTN has not made it mandatory to remit the tax amount at periodical intervals
and adjustments were not being carried out regularly. The amount deposited
into the Government Account by TANGEDCO, was the adjustments against the
loan receipts. Had the outstanding amount of ₹1,737.48 crore been credited in
the Government account during the year 2022-23, the revenue deficit would
have been lessened to that extent. Further, had the electricity tax amount of
₹ 4,264.61 crore been brought in to Government accounts, Government could
have reduced its borrowing to that extent with consequential reduction in the
interest payments.
Table 4.3: Details of collection of electricity tax and remittance into Government
Account
(₹ in crore)
Amount deposited into
Year Amount collected Amount yet to be credited
Government account
2019-20 1,266.10 1,228.79 37.31
2020-21 1,102.09 -- 1,102.09
2021-22 1,387.73 -- 1,387.73
2022-23 1,737.48 -- 1,737.48
Total 5,493.40 1,228.79 4,264.61
(Source: Details furnished by O/o PAG (Audit-II))

From Table 4.3, it is evident that 78 per cent of the tax collected during the
period 2019-23 were not credited to the Government Accounts and were kept
with TANGEDCO. The possibility of the amount being expended by
TANGEDCO for its own operational expenditure cannot be ruled out. Such
non-remittance to the Government account and retaining the collected tax for
such a long period is fraught with the risk of suspected temporary
misappropriation.

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 Chapter IV–Quality of Accounts and Financial Reporting Practices

In the Exit Conference, Government committed to take up the issue with

TANGEDCO. Though the issue was highlighted in the earlier Reports also, no
action has been initiated by the Government.

4.5 Delay in furnishing of Utilisation Certificates

As per Article 210 (A) of Tamil Nadu Financial Code, utilisation certificates
should be submitted to the Accountant General for Grants-in-aid received. The
Tamil Nadu Financial Code, however, had not specified any timeline for
submission of the Utilisation Certificates, in absence of which maximum
timeline of 15 months have been used for analysis. Thus, Utilisation
Certificates (UCs) in respect of Grants-in-Aid received by the grantee are
required to be furnished by the grantee to the authority that sanctioned it, by the
end of June for the grant received upto March of the previous financial year.
It was however noticed that 48 UCs for ₹1,435.43 crore were outstanding as per
the Finance Accounts 2022-23. The Department wise break-up of outstanding
UCs is given in Appendix 4.1 and the year-wise break up of delays in
submission of UCs is summarised in Table 4.4.
Table 4.4: Year wise break up of outstanding UCs
Year No of UCs Amount pending
(₹ in Crore)
2017-18 2 16.76
2018-19 2 7.95
2019-20 1 3.04
2020-21 3 18.04
2021-22 18 572.31
2022-23 22 817.33
Total 48 1,435.43
(Source: Notes to Finance Accounts)
A test check of three long pending UCs in respect of two departments viz. Town
and Country Planning Department and Industries and Commerce Department
for the grants issued prior to the year 2018-19 revealed the following,
 Audit scrutiny revealed that Director of Town and Country Planning
Department (DTCP), Chennai had released (February 2017) an
amount of ₹21 crore (during 2016-17) to Chennai Metropolitan
Water Supply and Sewerage Board (CMWSSB) for the work of
“Plugging of sewage outfalls to prevent untreated sewage letting into
water ways in Chennai” and CMWSSB had only utilised an amount
of ₹8.80 crore for which an UC was submitted (May 2023) by DTCP
to PAG (A&E).The delay in completion of the above work and
non-submission of UC for an amount of ₹12.20 crore was due to
termination of earlier contract which was attributable to the
contractor

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

 Two UCs for an amount of ₹4.56 crore and ₹1.71 crore were pending
from Industries and Commerce Department.
(a) In respect of pending UC for ₹4.56 crore, Audit scrutiny revealed that
the Industries and Commerce Department had released (March 2017)
an amount of ₹4.56 crore (during 2016-17) to Tamil Nadu Small
Industries Development Corporation (TANSIDCO) for establishing
a Southern District Textile Processing cluster in Virudhunagar
District. The delay in completion of the above work and non-
submission of UC for an amount of ₹4.56 crore was due to change in
location for setting up of an effluent treatment plant in Textile
Processing cluster as local villagers had raised objections and
consequential delay in execution of work.
(b) In respect of pending UC for ₹1.71 crore, Audit scrutiny disclosed
that Directorate of Industries and Commerce (DIC), Chennai had
released (April 2017) a grant of ₹3.41 crore (during 2017-18) to
TANSIDCO for setting up of an engineering cluster in Melavalavu
and Kanchirayanpatti village in Melur Taluk, Madurai District and
TANSIDCO had only utilised an amount of ₹1.70 crore for which an
UC was submitted by the Industries and Commerce Department to
PAG (A&E) as of June 2023. The delay in completion of the above
work and non-submission of UC for an amount of ₹1.71 crore was
due to non- completion of work on account of delays in mobilising
labour and raw materials on account COVID 19 pandemic situation.
Non submission of UCs indicates the failure of the departmental officers to
comply with the rules to ensure accountability. This assumes greater importance
if such UCs are pending against Grants-in-Aid meant for capital expenditure.
The pendency of UCs was fraught with the risk of misappropriation of funds
and fraud. Timely submission of UCs should not only be insisted upon but also
ensured.
On being pointed out by Audit, Government replied (November 2023) that the
concerned officials were instructed to furnish the Utilisation Certificate directly
to the Accountant General (A&E).

4.6 Recording of Grantee Institution as “Others”

The State Government sanctions Grants-in-Aid (GIA) to various Bodies and

Authorities. It is essential that the Government provides the details and nature
of the Grantee Institution to which it is providing funds in the interest of
transparency of accounts.
As per State Finance Accounts 2022-23 of GoTN, GIA constituted 24.18
per cent of the total expenditure of the State. Out of the total GIA of ₹79,002.82
crore for the year, an amount of ₹62,788.13 crore (79.48 per cent) was disbursed

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 Chapter IV–Quality of Accounts and Financial Reporting Practices

to grantee institutions of type “Others”, where “Others” means various

Government Departments excluding the GIA given to ‘Local Bodies’.
Out of the total GIA of ₹62,788.13 crore for the year 2022-23, ₹1,895.74 crore
(2.40 per cent) was shown as disbursed to Grantee Institutions of type “Others”
(detailed head code – 090, sub-detailed head code - 009). This adversely affects
the transparency of accounts and monitoring of UCs against these GIA. The
trend of percentage of GIA from the year 2018-19 to 2022-23 under type
“Others” to total GIA for the past five years are shown in Exhibit 4.2.
Exhibit 4.2: Recording of Grantee Institutions as 'Others'
90,000 14.96 16
80,000 14

82,585.60
13.19

79,002.82
70,000 12

70,678.62
60,000

(in per cent)

66,855.79
(₹ in crore)

10

62,788.13
50,000

57,883.95
8

50,603.81
40,000 2.85
47,825.88

10,892.02
10,577.58
2.4
1,363.52
35,933.85

30,000

38,401.04
1.35
4

1,895.74
20,000

685.15
10,000 2
0 0
2018-19 2019-20 2020-21 2021-22 2022-23

Total Grants-in-aid for the year

Grantee institutions as type “Others” [Detailed Head – 090] as per Statement 10 of Finance Accounts (FA)
Grantee institutions as type “Others” – Sub - Detailed head – 009
Percentage of Others (Sub-Detailed head – 009) to total GIA

(Source: State Finance Accounts for the respective years)

4.7 Non-Adjustment of Temporary Advances

The Government of Tamil Nadu does not follow the system of drawal of
Abstract Contingent (AC) bills followed by submission of Detailed Contingent
(DC) bills, as is the practice in other States. Instead, the Drawing and Disbursing
Officers (DDOs) have been empowered to draw Temporary Advances (TAs)
under Article 99 of Tamil Nadu Financial Code and the advances should be
adjusted by presenting detailed bills and vouchers as soon as possible. Such
Temporary Advances drawn by the departmental officers shall be adjusted
within three months from the date of drawal of the advances.
It was noticed that there were 693 number of temporary advances amounting to
₹296.97 crore drawn by various DDOs under Article 99 of Tamil Nadu
Financial Code, Vol. I, which remained unadjusted as on 31 March 2023. The
unadjusted amount include TAs amounting to ₹14.73 crore (Sl.No. 1 and 2 in
Table 4.5 below) with a period of pendency for more than five years
Out of the total outstanding TAs amounting to ₹296.97 crore, the
Commissionerate of Differently Abled and the Judicial Department had a

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

pendency of TAs amounting to ₹66.48 crore (22.39 per cent) and ₹53.12 crore
(17.89 per cent) respectively.
The issue of non-adjustment of temporary advance has been raised in the State
Finance Audit Report regularly. The number of temporary advances pending
for adjustment significantly decreased from 1,649 in 2021-22 to 693 in
2022-23. And the unadjusted amount decreased from ₹317.81 crore in 2021-22
to ₹296.97 crore in 2022-23.
Age-wise analysis of the advances pending adjustment is given in Table 4.5.
Table 4.5: Age-wise analysis of advances pending
Sl. Number of Amount
Pendency
No. Advances (₹ in crore)
1 More than 10 years 5 0.99
2 More than 5 years and less than 10 years 7 13.74
3 More than 1 year but less than 5 years 100 96.00
4 Less than one year 581 186.24
Total 693 296.97
(Source: Details furnished by AG(A&E))
The pendency, involving substantial amounts, indicated laxity on the part of
departmental officers in enforcing the codal provisions regarding adjustment of
the advances. In these cases, there is no assurance that the expenditure has
actually been incurred before the close of the respective financial years.
Advances drawn and not accounted for increased the possibility of wastage
/misappropriation /malfeasance, etc., of public money and unhealthy practices.
This also calls for fixing responsibility on the respective defaulting DDOs.
On being pointed out by Audit, Government replied (November 2023) that
necessary instruction had been issued to Commissioner of Treasuries and
Accounts (CTA) to settle the pending Temporary Advances.

4.8 Personal Deposit Accounts

As per Article 269 of Tamil Nadu Financial Code, GoTN is authorised to open
Personal Deposit (PD) Accounts where money is deposited to be utilised for
specific purposes. These PD Accounts are managed by designated
Administrators on the basis of sanctions received from the State Government.
The Accountant General (A&E) issues permissions for transfer of funds from
the Consolidated Fund to the concerned PD Account under Part III – Public
Account. These PD Accounts were required to be closed at the end of the year.
The money transferred to PD Account under the Head 8443-00-106-AA are
treated as final expenditure under the concerned service Major Heads from
which the money was transferred to the PD Accounts.
During 2022-23, an amount of ₹777.77 crore (47 accounts) was transferred to
PD accounts out of the Consolidated Fund of the State. All these 47 PD
Accounts were closed as at the end of the financial year.

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 Chapter IV–Quality of Accounts and Financial Reporting Practices

It was however seen that the Head 8443-00-106-AA had an opening balance of
₹1,154 crore and the same amount was shown as closing balance as at the end
of the financial year. Audit found that this figure represented misclassification
pertaining to 2019-20 wherein unspent amount relating to PD Accounts of five
Administrators were transferred back to the concerned service Major Heads at
the end of the financial year but the debit was incorrectly given to 8443-00-106-
AC. This misclassification was not rectified till March 2023.

4.9 Accumulation of unencashed cheques and return

Electronic Clearance Service

Paragraph 92 (iii) of the PAO Manual and Rule 49 of Tamil Nadu Treasury
Code specify that in cases where cheques are not encashed within three months
after the month of their issue, the payees should be advised by the PAO/DTO
of the fact of those cheques having become time-barred and should be requested
to obtain fresh cheques surrendering the time-barred cheques. If no reply is
received from the payee, action should be taken to cancel the cheque with
appropriate action to correct the expenditure under the relevant head.
It was, however, noticed from the details of unencashed cheques furnished by
the seven PAOs that 54,246 cheques for ₹60.77 crore remained unencashed
(June 2023). The age-wise profile of the number of cases and the value of
cheques depicted as unencashed, as per the books of PAOs, are summarised in
Table 4.6.
Table 4.6: Details of unencashed cheques
(₹ in crore)
Delay in number of years Number of cases Value of cheques
0-5 years 264 1.33
5-10 years 399 1.09
10-20 years 32,249 35.47
More than 20 years 21,334 22.88
Total 54,246 60.77
(Source: Information furnished by PAOs)
No action was taken by Government to resolve these long pending issues.
Payments through Electronic Clearance Service (ECS) has been the norm in
respect of direct benefit transfer, payment of salaries, wages, etc. Payments
made through ECS return to the PAO/Treasury if the payee details as per the
bank account do not match with the details of the payee maintained by the
PAO/Treasuries. In February 2018, Commissioner of Treasuries and Accounts
issued guidelines to be followed regarding return of funds paid through ECS.
As per the guidelines, the unclaimed amount lying for more than three months
should be remitted back into Government account by giving intimation to
concerned DDOs. Audit scrutiny of records of PAOs revealed that there were
44 ECS payments in PAO / Madurai amounting to ₹10.93 lakh pending (August

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2023) to be paid for more than three months due to reasons not on record.
Neither the returned ECS payment money was disbursed by PAO Madurai to
the Direct Benefit Transfer (DBT) beneficiaries by reconciling their bank details
nor remitted back into Government account as per relevant orders. Analysis of
a sample case of ECS return amount of ₹3.30 lakh disclosed that, despite a
provision in IFHRMS to credit all the ECS return amounts into the respective
heads originally debited, the system did not allow such credit of returned ECS
amounts which were originally debited to MH 8443. Thus, the system issues
also contributed to non-return of unencashed ECS payments to Government
account.
4.10 Indiscriminate use of Minor head ‘800’
Minor Head – “800 - Other Expenditure / Other Receipts” are intended to be
operated only when appropriate heads have not been provided in the accounts.
Routine operation of Minor Head - 800 is to be discouraged, since it renders the
accounts opaque.
During 2022-23, an expenditure amounting to ₹36,590.62 crore (11.45 per cent
of the total expenditure of ₹3,19,494.39 crore) under the Revenue and Capital
sections was classified under the minor head ‘800 - Other Expenditure’.
Audit scrutiny revealed that under 13 Major Heads the expenditure booked
under the minor head 800 exceeded 50 per cent of the total expenditure of the
respective Major heads as detailed in Appendix 4.2. In seven of the 13 Major
Heads, the entire expenditure incurred was booked under Minor Head ‘800’.
On a test check of the expenditures booked under the Minor Head 800, it was
noticed that the following expenditure were wrongly grouped with other
expenditure (Minor Head-800) even though separate minor heads are available
are given in Table 4.7.
Table 4.7: Expenditure booked under ‘Minor Head 800 – Other Expenditure’
Sl. Nature of expenditure (Detailed Head of Account wrongly booked As per LMMH Head of
No. Head) Account to be booked
Head of Account Amount
with description
(₹ in lakh)
1 110 – Subsidies 2405-00-800-BG-110 1,54.73
2 090 – Grants-in-Aid 2405-00-800-BE-090 13.16
2405-Fisheries-00-121-
3 090 – Grants-in-Aid 2405-00-800-BI-090 13.74 Welfare schemes for
4 090 – Grants-in-Aid 2405-00-800-BJ-090 5.26 Fisherman
(2405-00-121)
5 110 – Subsidies 2405-00-800-KD-110 6,221.23
6 120 – Scholarships and Stipends 2405-00-800-KG-120 50.00
7 190 – Machinery and Equipments 3456-00-800-AF-190 1.22 3456-Civil Supplies-00-
330 – Payments for Professional 102- Civil Supplies
8 3456-00-800-AF-330 74.92 Scheme
and Special Services
9 710 – Printing Charges 3456-00-800-AF-710 37.05 (3456-00-102)
(Source: VLC data & LMMH issued by CGA)
It was also noticed that out of the receipts of ₹2,43,749.34 crore during the year
2022-23, receipts amounting to ₹9,140.10 crore was booked under the Minor
Head ‘800- Other Receipts’ which works out to 3.75 per cent of the total receipts

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during the year. Instances where 50 per cent or more and significant amount of
receipts booked under minor head ‘800’ are detailed in Appendix 4.3.
On a test check of the receipts booked under the Minor Head 800, it was noticed
that:
a) Several receipts (exceeding ₹1 crore) were wrongly grouped with other
receipts (Minor Head 800) even though separate minor heads were
available as given in Table 4.8:
Table 4.8: Receipts booked under ‘Minor Head 800 – Other Receipts’

Sl. Nature of Head of Accounts wrongly booked As per LMMH Head of Account to be
No. receipt booked with description
(Detailed Head of Account Amount
Head) (₹ in lakh)

310 - Receipt of 0405 Fisheries - 00 - 011 Rents

1 Rent / Hire 0405-00-800-AC-310 15,973.20 “The minor head 011 will include receipts
Charges / Lease from auction of fishing rights” (0405-00-011)
0049 Interest Receipts – Interest- 04 Receipts
of State- 118 Interest on Loans to
Government Servants
“The minor Head 118 will accommodate the
2 250 - Interest 0049-04-800-AT-250 5,223.43
interest receivable on Loans to Government
Servants, separate sub heads may be opened
under this Minor Head for each type of
Interest Bearing Advances”. (0049-04-118)

0029 Land Revenue – 106 Receipts on

3 140 - Taxes 0029-00-800-AA-140 4,007.93 account of Survey and Settlement Operations
(0029-00-106)
310 - Receipt of
4 Rent / Hire 0853-00-800-AA-310 8,054.14 0853- Non-ferrous Mining and Metallurgical
Charges / Lease Industries-00-107- Minor Mineral
5 320 - Royalty 0853-00-800-AE-320 1,898.40 Concession Fees, Rents and Royalties (as
Sand is being classified under Minor
270 - Non- 0853-00-800-AF-270 Minerals).
6 2,754.86
Taxation Fees

270 - Non- 0210-04-800-AM-270 0210 Medical and Public Health-04 Public

7 3,825.62
Taxation Fees Health – 104 Fees and Fines etc- “104 minor
head will include licence fees, fines etc.
0210-04-800-AN-290 under Drug Control Acts and Prevention of
290 – Fines &
8 587.13 Food Adulteration Acts etc. realised by
Penalties
Public Health authorities.”

270 - Non- 0070-60-800-AB-270

9 822.37
Taxation Fees 0070 Other Administrative Services – 60
270 - Non- 0070-60-800-DM-270 Other Services – 108 Marriage Fees
10 328.77
Taxation Fees
(Source: VLC data & LMMH issued by CGA)

b) As per extant Rules, recoveries of overpayments pertaining to previous

year(s) shall be recorded under the minor head '911- Deduct Recoveries of
Overpayments' below the concerned Major Head. Audit scrutiny also revealed
that such recoveries pertaining to previous years(s) were booked under revenue
receipt heads as detailed in Table 4.9:

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Table 4.9: Receipts booked under ‘Minor Head 800 – Other Receipts’

Sl. Detailed Head & Object Head & Receipt

HOA with description
No. Description Description (₹ in lakh)

0070-60-800-MH
900 - Miscellaneous 001- Miscellaneous
1. Unspent Balance remitted by 29,772.16
Revenue Receipts Receipts
Various Departments
0049-04-800-DR
062 - Unspent
2. Interest Receipts under Integrated 250 - Interest 98.58
Balance
Child Protection Scheme (ICPS)
0049-04-800-CZ 250 - Interest 062 - Unspent
3. Interest Receipts - Directorate of Balance 50.95
Sericulture
0049-04-800-DE 250 - Interest 062 - Unspent
Miscellaneous receipts from Balance
4. 5.15
Commissionerate of Economics
and Statistics
0851-00-800-AB 250 - Interest 062 - Unspent
5. Balance 3.08
Handlooms and Textiles
Total 29,929.93
(Source: VLC data & LMMH issued by CGA)
Out of the above ₹299.30 crore, ₹1.58 crore related to unspent amount and
interest earned thereon in respect of scheme funds kept in bank accounts.
Despite knowing the specific nature of these receipts, these receipts were
classified as revenue receipts.
Further, in January 2022, GoTN directed to remit all unspent balances held in
bank accounts into the minor head 800 under the major head 0070 – Other
Administrative Services. This decision was made to mop up funds lying
unutilised in various bank accounts of different department without clear details
of schemes to which they pertained. During 2021-22, ₹287.44 crore was
incorrectly remitted under this head as revenue receipt, which was pointed out
in the SFAR on GoTN for the year 2021-22. Despite pointing out the incorrect
accounting of this amount, a total of ₹297.72 crore relating to unspent scheme
funds pertaining to previous years were remitted during 2022-23 under the head
‘0070-60-800’.
The booking of unspent balances of previous years to the tune of ₹299.30 crore
in nontax revenue head of account for the year 2022-23 had overstated the
revenue receipts.
Though the issue of classification of the receipts/ expenditure under Minor Head
800 – Other Receipts/ Expenditure had been continuously reported in the
previous State Finance Audit Reports (SFAR), there has been little
improvement. The fact that such substantial proportions of the receipts/
expenditure under the concerned Major Head are booked under Minor Head 800

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is a cause for concern, since it adversely impacts transparency in financial

reporting.
On being pointed out by Audit, Government admitted (November 2023) the
audit observations and assured to scrupulously follow the recommendations of
Audit in future.
C. ISSUES RELATED TO MEASUREMENT

4.11 Outstanding balances under Suspense and Debt, Deposit

and Remittance (DDR) heads

Annexure to Statement 21 of the State Finance Accounts reflect the net balances
under Suspense and Remittance Heads. The outstanding balances under these
heads are worked out by aggregating the outstanding debit and credit balances
separately under various heads. Clearance of suspense and remittance items
depends on the details furnished by the State Treasuries/ Works and Forest
Divisions, etc.
The Head “8658-101-PAO-Suspense” is intended for settlement of transactions
between the Accountant General (A&E) and the various separate Pay and
Accounts Officers (PAO) of Government of India. These involve transactions
that mainly relate to the payments made by the State Government to Central
Government Civil Pensioners. On clearance/settlement of this, the cash balance
of the State Government will increase.
The transactions initially recorded under this head in the books of the AG are
cleared on receipt of the Cheques/Demand Drafts from the Pay and Account
Officers and on the issue of Cheque/Demand Draft in respect of amounts
received in the State Treasuries on behalf of the Pay and Account Officers.
Outstanding debit balance under this head shows that payments have been made
by the AG on behalf of a PAO, which were yet to be reimbursed. As the
amount expended to the extent of ₹265.80 crore (Dr) had not been reimbursed
to the State funds, the cash balance outstanding as on 31 March 2023 showed a
decreased balance.

4.12 Non-reconciliation of Departmental figures

Controlling Officers of the Departments have to exercise effective control over

spending to keep it within the budget grants and to ensure accuracy of their
accounts. As per Rules 124 and 127 of the Tamil Nadu Budget Manual,
departmental accounts maintained by the Chief Controlling Officers (CCOs)
and the progressive actuals, month by month are required to be reconciled with
those entered in the books of the AG (A&E). As per Rule 128 of the Tamil
Nadu Budget Manual, the CCO is required to send a reconciliation certificate to
the AG(A&E) after necessary adjustments are made either in the accounts of
the CCO or in the books of the AG(A&E).

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During the year 2022-23, the CCOs had reconciled 94.79 per cent of the
expenditure and 93.86 per cent of receipts. The remaining 5.21 per cent of
expenditure and 6.14 per cent of receipts were not reconciled by 94 out of 214
CCOs and 54 out of 122 CCOs respectively. It was however noticed that, out
of 122/214 CCOs for receipts/expenditure in the State, only 68/120 CCOs had
fully reconciled the figures respectively. A further trend analysis for the past
three years revealed that the percentage of non-reconciliation has been on the
increasing trend as detailed in Table 4.10.
Table 4.10: Status of Non-Reconciliation of Receipts and Expenditure figures by CCOs
Total number of Percentage of
CCOs fully CCOs not fully
Year Controlling Non-
reconciled reconciled
Officers reconciliation
Receipts
2018-19 119 72 47 39.50
2019-20 121 52 69 57.02
2020-21 121 107 14 11.57
2021-22 126 91 35 27.78
2022-23 122 68 54 44.26
Expenditure
2018-19 211 152 59 27.96
2019-20 209 105 104 49.76
2020-21 209 175 34 16.27
2021-22 211 151 60 28.44
2022-23 214 120 94 43.93
(Source: Data compiled by the Accountant General (A&E), Tamil Nadu)
Further, due to the process of restructuring of loans during 2018-19, a number
of adverse balances were created. As the awareness on restructuring of loan
2018-19 has not yet reached the loanee entities completely upto 2022-23, the
repayment of principal and payment of interest had been recorded under the old
loan heads which, in turn, projected excess receipts under old heads and non-
receipts under new heads. Hence, the details on arrears on repayment of
principal and interest is yet to be reconciled.
Failure to exercise/adhere to the codal provisions and executive instructions in
non-reconciliation not only results in misclassification and incorrect booking of
receipts and expenditure in the accounts, which would also defeats the very
objective of budgetary process.
On being pointed out by Audit, Government replied (November 2023) that the
concerned officials had been instructed to complete the pending reconciliations.

4.13 Reconciliation of Cash balances

In terms of provisions of Section 20, 21 and 21A of the Reserve Bank of India
(RBI) Act, 1934, the RBI acts as a banker to both the Central and State

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Governments. The transactions on behalf of State Government are carried out

at offices of RBI and its agency banks authorised to conduct Government
business on its behalf.
While the principal deposit accounts of the State Governments are maintained
at the Central Accounts Section (CAS) of RBI at Nagpur, the regional offices
of RBI account for the State Government transactions reported by agency banks
through link offices and report to CAS, Nagpur.
As per the Memorandum of Instructions (MoI) of the RBI on the Accounting
and Reconciliation of the State Government transactions, the agency branches
have to send the Receipt /Payments scrolls on a daily basis in the prescribed
form to the concerned sub-treasury / treasury without delays. Also, the
consolidated monthly statement of the agency banks prepared by the link banks
are to be sent to the RBI which in turn should forward the monthly consolidated
statement to the Accountant General (A&E).
In view of the above system in place, there should generally not be any
difference between cash balance position as per the books of the Accountant
General and CAS figures. Even if differences occur in the month wise balance,
there should not be any difference between cash balance position at the closing
of Annual Accounts by April 25 of every year.
However, there was a sizeable net difference (₹103.07 crore) in the closing
balance for the year 2022-23 between the cash balance as per books of accounts
of the Accountant General and the cash balance as reported by the RBI. The
details of differences in the Cash balance is given in Table 4.11.
Table 4.11: Differences in cash balances
Period Debit difference Credit difference
Number of items ₹ in crore Number of items ₹ in crore
Upto 2017-18 817 4,364.92 1,060 4,463.81
2018-19 97 448.87 163 865.03
2019-20 69 290.31 149 887.98
2020-21 94 1,186.54 162 548.88
2021-22 101 1,502.16 91 1,188.69
2022-23 183 9,069.28 188 9,010.76
Total 1,361 16,862.08 1,813 16,965.15
(Source: Details furnished by Accountant General (A&E))
Analysis of such occurrences for the previous years revealed that the differences
in cash balances were on a decreasing trend from 2019-20 to 2022-23 as shown
in Table 4.12.

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Table 4.12: Trend of differences in cash balances

(₹ in crore)
Cash balances as per Cash balances as
Year Difference
books of AG (A&E) reported by RBI
2016-17 305.55 (Cr.) 89.53 (Cr.) 395.08 (Cr.)
2017-18 81.18 (Cr.) 8.12 (Cr.) 89.30 (Cr.)
2018-19 459.88 (Cr.) 37.49 (Cr.) 497.37(Cr.)
2019-20 923.33 (Dr.) 2,067.49 (Cr.) 1,144.16 (Cr.)
2020-21 467.24 (Cr.) 5.70 (Cr.) 472.94 (Cr.)
2021-22 266.95 (Dr.) 426.56 (Cr.) 159.61 (Cr.)
2022-23 59.17 (Cr.) 43.90 (Cr.) 103.07 (Cr.)
(Source: Statement 2 of Finance Accounts of the respective years)
The difference is mainly due to non-reporting of receipts by the Banks to the
Treasuries.

4.14 Impact on Post Audit Analysis of certain transactions on

fiscal indicators during 2022-23
Scrutiny of transactions during 2022-23 revealed that revenue deficit and fiscal
deficit were affected by certain accounting adjustments and through post audit
analysis which are detailed in Table 4.13. (Refer Para 1.9.1 of Chapter-I)
Table 4.13: Under/Over statement of Revenue and Fiscal Deficit

Impact on Revenue Deficit Impact on Fiscal Deficit

(₹ in crore) (₹ in crore)
Particulars
Over- Under- Over- Under-
statement (-) statement (+) statement (-) statement (+)
Incorrect adjustment of
recoveries of capital
-- (+) 5.74 -- --
expenditure under Revenue
Section
Interest on interest bearing
Reserve Funds and Deposits
not credited (State -- (+) 3.80 -- (+) 3.80
Compensatory Afforestation
Fund)
Non-transfer of central grant
under Central Road and -- (+) 298.20 -- (+) 298.20
Infrastructure Fund (CRIF)
Total -- (+) 307.74 -- (+) 302.00
(Source: Finance Accounts and Post audit analysis)

4.15 Compliance with Accounting Standards

As per Article 150 of the Constitution of India, the President of India may, on
the advice of the Comptroller and Auditor General of India, prescribe the form

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of accounts of the Union and of the States. The Comptroller and Auditor
General of India set up a Government Accounting Standards Advisory Board
(GASAB) in 2002, for formulating standards for government accounting and
financial reporting, to enhance accountability mechanisms. On the advice of the
Comptroller and Auditor General of India, the President of India has so far
notified three Indian Government Accounting Standards (IGAS). The extent of
non-compliance with the standards by the Government of Tamil Nadu in its
financial statements for the year 2022-23 is given in Table 4.14.
Table 4.14: Compliance with Accounting Standards

Sl. Accounting Impact of

Essence of IGAS Compliance by State Government
No Standards deficiency

IGAS-1: This standard requires the

Guarantees Government to disclose
given by the the amount of guarantees
1 Complied --
Government – (class and sector-wise)
Disclosure given during the year in its
requirements financial statements.
Grants-in-Aid are to be
IGAS-2: classified as, revenue
Accounting expenditure in the
and accounts, even if it
2 Complied --
Classification involves creation of
of Grants-in- assets. Grant-in-aid given
Aid in kind is required to be
disclosed.
Partly complied.
The Government of Tamil Nadu has
restructured old loans given by the
Government during 2018-19. Though the Due to non-
Statement 7 & 18 of the Finance Accounts on reconciliation,
Loans and Advances given by the State Adverse balances
IGAS-3:
Government have been prepared as per exists. The matter
Loans and Disclosures on loans and
prescribed format of IGAS-3, the has been taken up
3 Advances advances made by the
reconciliation of figures booked under the with the State in the
made by Government.
loan heads was not completed during Entry Conference
Government
2022-23, subsequent to the restructuring of and reconciliation
loans and advances given by the Government is being done by
during the year 2018-19. Hence, details some departments.
relating to the repayment of arrears of loan
entities could not be included. Reconciliation
with the State is under process
(Source: Details furnished by O/o AG(A&E))

D. ISSUES RELATED TO DISCLOSURE

4.16 Non-submission/ Delay in submission of accounts

Section 14 and 15 of the Comptroller and Auditor General’s (Duties, Powers

and Conditions of Service) Act, 1971 (DPC Act) envisages audit of accounts of
institutions receiving Government grants, subject to conditions stipulated based
on the quantum of the grants received, etc. In order to identify the institutions
which attract audit under the DPC Act, every year, the heads of department were
required to furnish to Audit the information about the financial assistance given

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

to various institutions, the purposes for which the assistance was granted and
the total expenditure of these institutions/bodies.
The Annual Accounts of 219 Institutions/Bodies due upto 2022-23 were not
received (August 2023) by Audit from the heads of department. The details are
given in Appendix 4.4 and their age-wise pendency is presented in Table 4.15.
Table 4.15: Age-wise analysis of arrears of Accounts of bodies/authorities
Number of
Sl. No. Delay in number of years
Institutions
1 Upto one year 86
2 More than one year and upto three years 88
3 More than three years and upto five years 20
4 Five years and above 25
Total 219
(Source: Data compiled from information furnished by Heads of Department)
The major defaulters were educational institutions receiving Government grants
for salaries, maintenance, etc. The delay in finalisation of accounts would
hamper Audit in providing an assurance to the Legislature that the grants were
being utilised for the intended objective.

4.17 Pendency in placement of Separate Audit Report of the

Tamil Nadu Legal State Authority in the State Legislature:

As per sub sections 2, 4 and 5 of Section 18 of The Legal Services Authority

Act 1987, the accounts of the Legal State Authorities shall be audited by the
Comptroller and Auditor General of India (CAG) at such intervals as may be
specified by him and the accounts of the State Legal Authorities, as certified by
the CAG or any other person appointed by him in this behalf together with the
audit report thereon shall be forwarded annually by the Authorities to the State
Government. The State Government shall cause the accounts and the audit
report, as soon as may be after they are received, to be laid before the State
Legislature. However, it was noticed in Audit that the Separate Audit Reports
of the Tamil Nadu State Legal Services Authority and 32 District Legal Service
Authorities in the State for the periods mentioned in Appendix 4.5, have not
been placed in the State Legislature.

4.18 Misappropriation, Losses and Thefts

Article 294 of the Tamil Nadu Financial Code.(Vol-I) stipulates that “Heads of
Office” should report all cases of defalcations or loss of public money, stores or
other movable or immovable properties to the AG (A&E). Further, the
Financial Code prescribes the principles and procedures to be followed for
enforcing responsibility for losses and disposal of such cases.

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As on 31 March 2023, 393 cases of misappropriation, shortages and theft

involving a total amount of ₹30.81 crore, were pending disposal. The
department-wise break-up of these are detailed in Appendix 4.6. The age-
profile of the pending cases and the reasons for pendency are summarised in
Tables 4.16 and 4.17.

Table 4.16: Age Profile of pending cases

Amount involved*
Range in years Number of cases
(₹ in crore)
0–5 43 2.95
6 - 10 15 9.44
11 - 15 32 4.87
16 – 20 31 3.42
21 and above 272 10.13
Total 393 30.81
* Based on information made available during 2022-23, the number and amount involved
during past years have been reworked
(Source: Information furnished by Heads of Department & AG(A&E))

Table 4.17: Reasons for pendency of the cases

Amount
Reasons for the pendency Number of cases
(₹ in crore)
Awaiting departmental and criminal investigation 161 13.54
Departmental action initiated but not finalised 112 4.97
Criminal proceedings finalised but recovery of the
12 0.76
amount still pending
Awaiting orders for recovery or write off 76 3.74
Pending in Courts of law 32 7.80
Total 393 30.81
(Source: Information received from Heads of Department & AG(A&E))
Out of 393 cases, 39 cases amounting to ₹15.77 crore pertaining to
Commissioner of Treasuries and Accounts (CTA) were noticed by the office of
PAG (A&E) during the inspection of CTA. Amongst 39 cases, 24 cases
amounting to ₹4.74 crore were pending for more than 20 years and all of them
relate to misappropriation of Government money on Military Pension, DCRG,
fake bills, ECS return amount etc. Despite the codal provisions warranting that
all cases of defalcations or loss of public money, stores or other movable or
immovable properties should be communicated by the HoD to the Accountant
General, the office of the Commissioner of Treasury and Accounts had not
reported the above cases to the Accountant General, indicating the failure of the
department. Moreover, concrete action taken by the office of the CTA in
effecting recoveries from the officers involved in misappropriations were not
reported to Audit.

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4.19 Follow up on State Finances Audit Report

The Public Accounts Committee had 15 sittings on SFAR from 2013-14 to

2022-23. As of September 2023, out of 207 paragraphs/reviews selected for
discussion for the period 2008-09 to 2021-22 on the State Finance Audit Report
of Tamil Nadu, 22 paragraphs/reviews have been discussed and 185
paragraphs/reviews are pending discussion.

4.20 Conclusion

Non submission of Utilisation Certificates (₹1,435.43 crore) indicate the failure

of the departmental officers to comply with the Rules to ensure accountability
and ensuring achievement of the intended objective of the Grants-in-Aid. This
assumes greater importance as Utilisation Certificates were pending against
Grants-in-Aid meant for capital expenditure as well.
(Paragraphs 4.5)
The non-adjustment of Temporary Advances involving substantial amounts
(₹296.97 crore drawn and pending over a period of years) indicated laxity on
the part of departmental officers in enforcing the codal provisions regarding
adjustment of the advances.
(Paragraphs 4.7)
Several receipts and expenditures were wrongly booked under Minor Head 800
even though separate Minor Heads were available for booking under the
respective Major Heads.
Unspent balances of previous years as well as interest earned on these balances
were booked under the non-tax receipt heads (Minor Head 800) instead of
booking under Minor Head “911- Recovery of Overpayments”.
(Paragraphs 4.10)
As of March 2023, 219 Accounts pertaining to Bodies/Authorities were pending
for finalization and the extent of arrears ranged between one year and more than
five years.
(Paragraphs 4.16)
The cases of misappropriations, losses and thefts were not brought to the notice
of the Principal Accountant General as and when occurred and the remedial
action therein were pending for several years.
(Paragraphs 4.18)

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4.21 Recommendations

 Government should ensure that controlling officers adjust temporary

advances and submit Utilisation Certificates in time and fix
responsibility on those who fail to do so.
 Government should instruct DDOs/PAOs to book receipts and
expenditure under the appropriate Minor Heads already available
and to book Minor Head 800 only when no other appropriate heads
were available. Unspent balances of previous years should be
booked under Minor Head “911 – Recovery of Overpayments”.
 Government should fix responsibility on the concerned Chief
Executive Officers for pendency of accounts.
 Government should instruct all Heads of Departments to adhere to
codal provisions on reporting all cases of defalcations or loss of
public money, stores or other movable or immovable properties to
Accountant General.

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 CHAPTER V
STATE PUBLIC
SECTOR
UNDERTAKINGS
 CHAPTER V

STATE PUBLIC SECTOR UNDERTAKINGS

This chapter discusses the financial performance of Government Companies,

Statutory Corporations and Government controlled Other Companies (herein
after referred to as Public Sector Undertakings (PSUs)) as revealed from their
accounts. Impact of significant comments issued as a result of supplementary
audit of the Financial Statements of these PSUs conducted by the CAG of India
for the year 2022-23 (or of earlier years which were finalised during the current
year) has also been discussed.
5.1 Definition of Government Companies
A Government Company is defined in Section 2(45) of the Companies Act,
2013 as a company in which not less than 51 per cent of the paid-up share capital
is held by Central Government, or by any State Government or Governments,
or partly by the Central Government and partly by one or more State
Governments, and includes a company which is a subsidiary of a Government
Company.
Besides, any other company1 owned or controlled, directly or indirectly by the
Central Government, or by any State Government or Governments, or partly by
the Central Government and partly by one or more State Governments are
referred to in this Report as Government Controlled Other Companies.
5.2 Mandate of Audit
Audit of Government Companies and Government Controlled Other Companies
is conducted by the CAG of India under the provisions of Section 143(5) to
143(7) of the Companies Act, 2013 read with Section 19 of the CAG’s (Duties,
Powers and Conditions of Service) Act, 1971 and the Regulations made
thereunder. Under the Companies Act, 2013, the CAG appoints the Chartered
Accountants as statutory auditors for Companies and gives directions on the
manner in which the accounts are to be audited. In addition, CAG has the right
to conduct a supplementary audit. The statutes governing some Statutory
Corporations require their accounts to be audited only by CAG.
5.3 PSUs and their contribution to the GSDP of the State
PSUs are established to carry out activities of commercial nature keeping in
view the welfare of people and occupy an important place in the State economy.
As on 31 March 2023, there were 102 PSUs in Tamil Nadu, including one

1
Companies (Removal of Difficulties) Seventh Order, 2014 issued by Ministry
of Corporate Affairs vide Gazette Notification dated 4 September 2014.

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Statutory Corporation2 (including two3 inactive PSUs4) under the audit

jurisdiction of the CAG. The names of these PSUs are given in Appendix 5.1.
The inactive PSUs have investment of ₹5.27 crore towards capital invested by
the State Government. Tamil Nadu State Construction Corporation Limited had
outstanding liabilities of ₹29.64 crore, whereas there were no liabilities
outstanding in respect of Tamil Nadu Goods Transport Corporation Limited as
per their latest finalised accounts. This is a critical area as the investments in
inactive PSUs do not contribute to the economic growth of the State.
A ratio of turnover of the PSUs to the GSDP shows the extent of activities of
the PSUs in the State economy. The details of turnover of PSUs and GSDP for
a period of three years ending 31 March 2023 are given in Table 5.1 below:
Table 5.1: Details of turnover of PSUs vis-à-vis GSDP of Tamil Nadu

(₹ in crore)
Particulars 2020-21 2021-22 2022-23

Turnover 1,14,334.72 1,27,829.39 1,67,841.57

GSDP of Tamil Nadu 17,88,074 20,71,286 23,64,514

Percentage of Turnover to GSDP of

6.39 6.17 7.10
Tamil Nadu
(Source: Latest Financial Statement of PSUs)

It can be seen from the table above that the turnover of these PSUs recorded
increase during 2022-23 as compared to 2020-21 by 46.80 per cent as per their
latest audited accounts available in respective years. However, the contribution
of PSUs in GSDP is marginal.
5.4 Investment in PSUs and Budgetary support
5.4.1 Equity holding and Loans in PSUs

The sector-wise Total Equity, Equity Contribution by State Government and

Long Term Loans including the loans given by State Government as on
31 March 2023 is given below in Table 5.2.

2
Tamil Nadu Warehousing Corporation.
3
Tamil Nadu State Construction Corporation Limited and Tamil Nadu Goods Transport
Corporation Limited.
4
Inactive Government Company means a Company which has not been carrying on any
business or operation, or has not made any significant accounting transaction, or has not
filed financial statements and annual returns during last two financial years

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Table 5.2: Sector-wise investment5 in PSUs

(₹ in crore)
Name of Sector Total Equity State Government Total Long State Government Total Equity and Long
Equity Term Loans Loans Term Loans

Power 55,075.17 29,142.94 1,31,723.21 4,578.45 1,86,798.38

Finance 3,621.92 3,435.30 2,048.42 5.04 5,670.34

Service 7,086.67 7,051.86 15,436.57 4,352.80 22,523.24

Infrastructure 807.63 225.74 2,976.95 392.49 3,784.58

Others 744.86 478.93 1,983.78 386.11 2,728.64

Total 67,336.25 40,334.77 1,54,168.93 9,714.89 2,21,505.18

(Source: Latest Financial Statement of PSUs)

The thrust of PSUs investment was mainly on power sector. The Power
sector had received 84.33 per cent (₹1,86,798.38 crore) of total investment of
₹2,21,505.18 crore.
5.4.2 Disinvestment, Restructuring and Privatisation
During the year 2022-23, there was no case of privatisation of PSUs.
5.4.3 Power Sector Companies

As on 31 March 2023, there were five Power Sector PSUs in the State. The
Generation and Distribution activities are carried through Tamil Nadu
Generation and Distribution Corporation Limited (TANGEDCO) and
transmission activities through Tamil Nadu Transmission Corporation Limited
(TANTRANSCO) which are subsidiaries of TNEB Limited (Holding
company). The other two Power Sector PSUs are Udangudi Power Corporation
Limited and Tamil Nadu Power Finance and Infrastructure Development
Corporation Limited through which funds are mobilised from public to finance
the development activities of the above PSUs. State Government has been
providing financial support to Power Sector PSUs in various forms through the
annual budget. As of March 2023, the budgetary outgo towards equity, loans
and grants/subsidies in respect of Power Sector PSUs for the past three years
are as shown in Table 5.3:

5
Investment includes equity and long term loans.

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Table 5.3: Details regarding budgetary support to Power Sector PSUs by State
Government

(₹ in crore)

Sl. Particulars 2020-21 2021-22 2022-23

No
No. of Amount No. of Amount No. of Amount
PSUs PSUs PSUs
1 Equity Capital 1 437.00 3 842.39 0 0.00
2 Loans Given 2 889.37 2 2,180.44 1# 394.55
3 Grants/Subsidy Provided 2 14,277.55 2 15,656.29 1@ 26,472.14
Total 15,603.92 18,679.12 26,866.69
4 Waiver of Loans and
0 0.00 0 0.00 0 0.00
interest
5 Guarantees issued 1 36,414.31 1 1,500.00 1 6,000.00
6 Guarantee Commitment 2 1,22,949.36 2 1,39,521.76 2 1,50,313.19

# Tamil Nadu Transmission Corporation Limited

@ Tamil Nadu Generation and Distribution Corporation Limited

The grants/subsidy provided by the Government to Tamil Nadu Generation and

Distribution Corporation Limited represents tariff subsidy (₹13,783.68 crore)
and other revenue grants (₹12,688.46 crore).
5.5 Returns from PSUs
5.5.1 Profit earned by PSUs
Out of 95 PSUs (excluding two inactive PSUs and five PSUs from whom first
accounts were not received), 54 earned profit in 2022-23 as per the latest
finalised accounts as compared to 43 in 2021-22. The profit earned increased to
₹2,560.42 crore in 2022-23 from ₹1,721.03 crore in 2021-22. The Return on
Equity (RoE) of the 54 profit earned PSUs increased to 13.15 per cent in
2022-23 as compared to 10.77 per cent in 43 PSUs in 2021-22. The RoE in
all the 95 PSUs including 35 loss making was (-) 0.09 per cent in 2022-23.
The details of top three PSUs which contributed maximum profit are
summarised in Table 5.4 below:
Table 5.4: Top three PSUs which contributed maximum profit
Net profit Percentage of
Name of PSU earned Profit to total
(₹ in crore) PSUs profit
Tamil Nadu Power Finance and Infrastructure 1,017.17 39.73
Development Corporation Limited

Tamil Nadu Newsprint and Papers Limited 387.87 15.14

Tamil Nadu Industrial Development Corporation Limited 228.79 8.94

Total 1,633.83 63.81

(Source: Latest Financial Statements of PSUs)

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During 2022-23, net profit of ₹1,633.83 crore constituting 63.81 per cent of
total profit of PSUs was contributed by these three PSUs.
5.5.2 Dividend paid by PSUs

The dividend declared/paid by PSUs to GoTN is shown in Table 5.5 below:

Table 5.5: Dividend Payout of PSUs
(₹ in crore)
Year No. of PSUs which Paid Up Capital Net Profit Dividend
declared dividend Declared
1 2 3 4 5
2019-20 14 2,372.27 716.53 221.63
2021-22 14 2,808.74 681.50 295.22
2022-23 17 3,808.86 1,150.68 311.21
(Source: Latest Financial Statement of PSUs)

17 PSUs paid/declared dividend during 2022-23 as against 14 PSUs during

2019-20 and 2020-21. PSUs in Power Sector had not declared/paid dividend.
5.6 Debt Servicing
5.6.1 Interest Coverage Ratio

Interest coverage ratio (ICR) is used to determine the ability of a company to

pay interest on outstanding debt and is calculated by dividing a company's
earnings before interest and taxes (EBIT) by interest expenses of the same
period. The lower the ratio, the lesser is the ability of the company to pay
interest on debt. An interest coverage ratio of below one indicates that the
company was not generating sufficient revenues to meet its expenses on interest.
The details of interest coverage ratio in 37 PSUs which had interest burden are
given below in Table 5.6.
Table 5.6: Interest coverage ratio of PSUs
PSUs having Interest Coverage PSUs having Interest Coverage
Ratio ≥1 Ratio <1
Particulars
Interest EBIT Interest EBIT
No. of No. of
PSUs PSUs
(₹ in crore) (₹ in crore)

PSUs 20 1,280.56 2,690.81 17 17,191.04 1,182.65

Total 20 1,280.56 2,690.81 17 17,191.04 1,182.65
(Source: Latest Financial Statement of PSUs)

It was observed that 20 PSUs (including one Statutory Corporation) having

interest liability had ICR equal to or more than one indicating that sufficient
revenues were available to meet the interest liability. Similarly, 17 PSUs had
ICR less than one indicating that these PSUs could not generate adequate
revenue to pay off their interest liability.

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5.7 Performance of PSUs

5.7.1 Return on Capital Employed
Return on Capital Employed (RoCE) is a ratio that measures a company’s
profitability and the efficiency with which its capital is employed. RoCE is
calculated by dividing a company’s EBIT by the capital employed6. The details
of RoCE during the period from 2020-21 to 2022-23 are given below in
Table 5.7.
Table 5.7: Return on Capital Employed

Year EBIT Capital Employed RoCE

(₹ in crore) (₹ in crore) (in per cent)
2020-21 (-) 4,301.19 21,646.31 (-) 19.87
2021-22 (-) 1,131.29 11,304.11 (-)10.01
2022-23 6,840.83 6,364.64 107.48
(Source: Latest Financial Statement of PSUs)

It was observed that EBIT was negative in 2020-21 primarily due to poor
financial performance of TANGEDCO and TANTRANSCO. The EBIT
registered improvement in 2021-22 (though negative) and became positive
during 2022-23 due to increase in revenue of TANGEDCO after the
implementation of revised tariff from September 2022 onwards. Further, the
Capital employed registered decrease successively from 2020-21 onwards
mainly due to increase in accumulated losses of TANGEDCO. Consequently,
the RoCE became positive during 2022-23.
5.7.2 Return on Equity by PSUs
Return on Equity (RoE) is a measure of financial performance to assess how
effectively a company’s assets are being used to create profits. RoE is calculated
by dividing net income (i.e. net profit after taxes) by shareholders’ fund. It is
expressed as a percentage and can be calculated for any company if net income
and shareholders’ fund are both positive numbers.
Shareholders’ fund is calculated by adding paid up capital and free reserves
minus net of accumulated losses and deferred revenue expenditure and reveals
how much would be left for a company’s stakeholders if all assets were sold
and all debts paid. A positive shareholders fund reveals that the company has
enough assets to cover its liabilities while negative shareholder equity means
liabilities exceed assets.

6
Capital Employed = Paid up Share capital plus Free Reserves and surplus plus Long term
loans less Accumulated losses less Deferred Revenue Expenditure.

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The consolidated RoE of PSUs during the period from 2020-21 to 2022-23
shows that both the Net Profit after Tax and Shareholders’ Equity were negative,
thus no return was available during these three years.
5.8 PSUs incurring losses
5.8.1 Losses incurred

There were 35 PSUs7 that incurred losses as per their latest finalised accounts at
the end of March 2023. The losses incurred by these PSUs decreased to
₹16,047.99 crore in 2022-23 as per their latest finalised accounts from
₹25,542.52 crore in 2020-21 as given below in Table 5.8.
Table 5.8: Number of PSUs that incurred losses during 2020-21 to 2022-23
(₹ in crore)

Year No of loss making Net loss for the Accumulated Net Worth8
PSUs year loss

2020-21 33 25,542.52 1,64,785.03 (-)1,05,425.53

2021-22 34 22,232.33 1,83,123.14 (-)1,25,300.27

2022-23 35 16,047.99 2,26,051.29 (-)1,67,419.82

It is pertinent to mention that the State Government had invested ₹32,583.71

crore as on 31 March 2023 in the form of equity in these 35 loss making PSUs
without any return in the form of dividend. In 2022-23, out of total loss of
₹16,047.99 crore incurred by 35 PSUs, significant loss of ₹9,847.75 crore was
incurred by two power sector PSUs9 and ₹6,077.86 crore was incurred by eight10
transport undertakings. Out of the above 35 loss making PSUs in 2022-23, 31 PSUs
had accumulated loss of ₹2,26,184.21 crore and four PSUs11 had accumulated
profit of ₹132.92 crore aggregating to net accumulated loss of ₹2,26,051.29 crore.
Out of 31 PSUs which had accumulated losses, the net worth of 21 PSUs had been
completely eroded.

7
excludes two non-workings PSUs.
8 Net worth means the sum total of the paid-up share capital and free reserves and surplus less
accumulated loss and deferred revenue expenditure. Free reserves mean all reserves created out of
profits and share premium account but do not include reserves created out of revaluation of assets
and write back of depreciation provision.
9
Tamil Nadu Generation and Distribution Corporation Limited and Tamil Nadu Transmission
Corporation Limited
10
Metropolitan Transport Corporation Limited, State Express Transport Corporation Limited,
Tamil Nadu State Transport Corporation (Coimbatore) Limited, Tamil Nadu State Transport
Corporation (Kumbakonam) Limited, Tamil Nadu State Transport Corporation (Salem) Limited,
Tamil Nadu State Transport Corporation (Villupuram) Limited, Tamil Nadu State Transport
Corporation (Madurai) Limited and Tamil Nadu State Transport Corporation (Tirunelveli)
Limited.
11
Overseas Manpower Corporation Limited, IT Expressway, Tamil Nadu Handicrafts Development
Corporation Limited and Poompuhar Shipping Corporation Limited.

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5.8.2 Erosion of Capital in PSUs

As on 31 March 2023, there were 39 PSUs (31 PSUs which made loss
during the year 2022-23 and also have accumulated losses as mentioned in Para
5.8.1 and eight PSUs which made profit during the year but had accumulated
losses ) with accumulated losses of ₹2,26,542.53 crore. Of these 39 PSUs,
31 PSUs incurred losses amounting to ₹16,016.09 crore and eight PSUs had
not incurred loss, even though they had accumulated loss of ₹358.32 crore as
per their latest accounts finalised.
The net worth of 23 out of 39 PSUs had been completely eroded by accumulated
loss and their net worth was negative. The details are indicated in Appendix
5.2. The net worth of these 23 PSUs was (-) ₹1,93,132.99 crore against equity
investment of ₹33,263.46 crore as on 31 March 2023. Out of 23 PSUs, whose
capital had been eroded (being negative net worth), two PSUs12 had earned
profit of ₹25.57 crore during 2022-23.
The 23 PSUs whose net worth was eroded included two power sector PSUs and
21 non power sector PSUs. The two power sector PSUs incurred operational
expenditure of ₹95,878.96 crore as against operational income of ₹84,290.71
crore. The 21 non-power sector PSUs incurred operational expenditure of
₹48,247.51 crore as against operational income of ₹39,573.58 crore as per their
latest finalised accounts. Thus the 23 PSUs13 whose net worth was eroded
incurred operational expenditure of ₹1,44,126.47 crore as against operational
income of ₹1,23,864.29 crore. It is pertinent to mention that the State
Government had been continuing budgetary support in the form of
grants/subsidies etc., amounting to ₹26,472.14 crore to one power sector PSU
(TANGEDCO) and ₹2,945.01 crore to nine non power sector PSUs during
2022-23, of which eight belong to Transport sectors.
Out of the above 23 PSUs, 22 PSUs finalised their accounts for 2022-23 and
only one PSU’s accounts was in arrears for one year.
5.9 Audit of PSUs
CAG appoints the statutory auditors of a Government Company and
Government Controlled Other Company under Section 139 (5) and (7) of the
Companies Act, 2013. CAG has a right to conduct a supplementary audit and
issue comments upon or supplement the Audit Report of the statutory auditor.
Statutes governing some Corporations require that their accounts be audited by
the CAG and a report be submitted to the Legislature.
5.10 Appointment of statutory auditors of PSUs by CAG
Sections 139 (5) of the Companies Act, 2013 provides that the statutory auditors
in case of a Government Company or Government Controlled Other Company
12
Perambalur Sugar Mills Limited and Pallavan Transport Consultancy Services Limited
13
The liabilities/establishment expenditure of the net worth eroded PSUs were met from internal
generation, working capital arrangement with banks etc.

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are to be appointed by the CAG within a period of 180 days from the
commencement of the financial year.
The statutory auditors of the above Companies for the year 2022-23 were
appointed by the CAG from September 2022 onwards.
5.11 Submission of accounts by PSUs
5.11.1 Need for timely submission
According to Section 394 of the Companies Act, 2013, Annual Report on
the working and affairs of a Government Company is to be prepared within three
months of its Annual General Body Meeting14 (AGM). As soon as may be after
such preparation, the Annual Report must be laid before Legislature, together
with a copy of the Audit Report and comments of the CAG upon or as
supplement to the Audit Report. Almost similar provisions exist in the
respective Acts regulating Statutory Corporations. This mechanism provides the
necessary Legislative control over the utilisation of public funds invested in the
Companies from the Consolidated Fund of State.
Section 96 of the Companies Act, 2013 requires every company to hold AGM
of the shareholders once in every calendar year. It is also stated that not more
than 15 months shall elapse between the date of one AGM and that of the next.
Further, Section 129 of the Companies Act, 2013 stipulates that the audited
Financial Statements for the financial year have to be placed in the said AGM
for their consideration.
Section 129 (7) of the Companies Act, 2013 also provides for levy of penalty
like fine and imprisonment on the persons including directors of the company
responsible for non-compliance with the provisions of Section 129 of the
Companies Act, 2013.
The annual accounts of various PSUs which were pending are detailed in the
following paragraph.
5.11.2 Timeliness in preparation of accounts by PSUs
As of 31 March 2023, there were 102 PSUs (including one statutory
corporation) under the purview of CAG’s audit. Of these, accounts for the year
2022-23 were due from 100 PSUs (excluding two inactive PSUs). However, 91
PSUs submitted their accounts (including accounts of previous years) for audit
by CAG by 31 December 2023. Accounts of 16 PSUs were in arrears for various
reasons. Details of arrears in submission of accounts by PSUs are given in Table
5.9.

14
In case of the first AGM, it shall be held within a period of nine months from the date of
closing of the first financial year of the company and in any other case within a period
of six months, from the date of closing of the financial year i.e. 30 September.

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Table 5.9: Details of arrears in submission of accounts by PSUs

Sl. Particulars No. of
No. PSUs
1 Total number of Companies under the purview of CAG’s 102
audit as on 31.03.2023
2 Less: New Companies from which accounts for 2022-23 were 00
not due
3 Number of companies from which accounts for 2022-23 were 10015
due
4 Number of companies which presented the accounts for 8416
the year 2022-23 for CAG’s audit by 31 December
2023.
5 Number of accounts in arrears (16 PSUs) 22
6 Break- up of Arrears (i) Under Liquidation 0
(ii) Defunct 0
(iii) Others 22
7 Age-wise analysis of (i) One year (2022-23) 11
arrears against ‘Others’ (ii) Two years (2021-22 and 2022- 8
category 23)
(iii) Three years and more 3

The State Government had made investment in the form of equity and loans in
the PSUs whose accounts had been falling in arrears and hence, the non-
finalisation of accounts by these companies would lead to the Government
investments remaining outside the oversight of Audit as well as the State
Legislature thereby making them highly susceptible to instances of fraud and
misappropriation.
5.12 CAG’s oversight – Audit of accounts and supplementary audit

5.12.1 Financial reporting framework

Companies are required to prepare the Financial Statements in the format laid
down in Schedule III to the Companies Act, 2013 and in adherence to the
mandatory Accounting Standards prescribed by the Central Government, in
consultation with National Advisory Committee on Accounting Standards. The
Statutory Corporations are required to prepare their accounts in the format
prescribed under the rules, framed in consultation with the CAG and any other
specific provision relating to accounts in the Act governing such Corporations.
5.12.2 Audit of accounts of Government Companies by statutory
auditors
The statutory auditors appointed by the CAG under Section 139 of the
Companies Act, 2013, conduct audit of accounts of the Government Companies
and submit their report thereon in accordance with Section 143 of the
Companies Act, 2013.

15
Excludes two inactive companies
16
Represents number of accounts received and certified by CAG for 2022-23

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The CAG plays an oversight role by monitoring the performance of the statutory
auditors in audit of Public Sector Undertakings with the overall objective that
the statutory auditors discharge the functions assigned to them properly and
effectively. This function is discharged by exercising the power to:
 issue directions to the statutory auditors under Section 143 (5)
of the Companies Act, 2013; and
 supplement or comment upon the statutory auditor's report under
Section 143 (6) of the Companies Act, 2013.
5.12.3 Supplementary Audit of accounts of Government Companies
The prime responsibility for preparation of Financial Statements in accordance
with the financial reporting framework prescribed under the Companies Act,
2013 or other relevant Act is of the management of an entity.
The statutory auditors appointed by the CAG under Section 139 of the
Companies Act, 2013 are responsible for expressing an opinion on the Financial
Statements under Section 143 of the Companies Act, 2013 based on an
independent audit in accordance with the Standard Auditing Practices of
Institute of Chartered Accountants of India and directions given by the CAG.
The statutory auditors are required to submit the Audit Report to the CAG under
Section 143 of the Companies Act, 2013.
The certified accounts of selected PSUs along with the report of the statutory
auditors are reviewed by CAG by carrying out a supplementary audit. Based on
such review, significant audit observations, if any, are reported under Section
143 (6) of the Companies Act, 2013 to be placed before the AGM.
5.13 Result of CAG’s oversight role
5.13.1 Audit of accounts of Government Companies under Section 143 of
the Companies Act, 2013

The Financial Statements of 91 PSUs (including one Statutory Corporation)

pertaining to the year 2022-23 and previous years were received for audit by
CAG by 31 December 2023. Of which, 59 Financial Statements of PSUs were
reviewed in audit by the CAG and Non Review Certificate was issued for 27
PSUs (five under process). The results of the review are detailed below:
5.13.2 Revision of Auditors Report
The statutory auditors’ reports on eight Financial Statements were revised as a
result of supplementary audit of the Financial Statements conducted by the
CAG.
5.13.3 Significant comments of the CAG issued as supplement to the
statutory auditors’ reports on Government Companies
Subsequent to the audit of the Financial Statements for the year 2022-23 and
previous years by statutory auditors, the CAG conducted supplementary audit
of the Financial Statements of 59 PSUs by 31 December 2023.

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Comments were issued on Financial Statements of three PSUs, the financial

impact of which was ₹393.52 crore on the profitability.
5.14 Management letters
One of the objectives of financial audit is to establish communication on audit
matters arising from the audit of Financial Statements, between the auditor and
those charged with the responsibility of governance of the corporate entity.
The material observations on the Financial Statements of Public Sector
Undertakings were reported as comments by the CAG under Section 143 (5) of
the Companies Act, 2013. Besides these comments, irregularities or deficiencies
observed by CAG in the financial reports or in the reporting process, were also
communicated to the Management through ‘Management Letter’ for taking
corrective action. During the year, CAG issued Management Letters to 27 PSUs
on the deficiencies related to accounting treatment and policies, non-compliance
to accounting standards on disclosures and non-compliance to assurances to
audit on rectification of errors, etc.
5.15 Conclusion
This Chapter presents the financial performance of Public Sector
Undertakings measured by ratios indicating their operating efficiency and
return on investment. This Chapter also deals with oversight role of CAG by
monitoring the performance of the statutory auditors with the overall
objective that the statutory auditors discharge the functions assigned to them
properly and effectively.
 As on 31 March 2023, there were 102 PSUs including one Statutory
Corporation. Of these PSUs, two were inactive.
 Out of the total profit of ₹2,560.42 crore earned by PSUs, 63.81 per
cent was contributed by only three PSUs. Out of total loss of
₹16,047.99 crore incurred by 35 PSUs, loss of ₹15,926.60 crore was
contributed by three Power and eight Transport sector PSUs.
 Analysis revealed that 39 PSUs had an aggregate accumulated losses
of ₹2,26,542.53 crore and of these 39 PSUs, the net worth of 23 PSUs
had been completely eroded by accumulated losses and their net worth
was negative. The net worth of these 23 PSUs was (-)₹1,93,132.99
crore against equity investment of ₹33,263.46 crore.
 The overall Return on Equity in all PSUs was negative as the overall
net income and shareholders’ fund of these PSUs were negative during
2022-23.
 PSUs were not adhering to the prescribed timeline regarding
submission of their Financial Statements as per the Companies Act,
2013. As a result, 22 accounts of 16 PSUs were in arrears.

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5.16 Recommendations
 Government may consider setting up an expert committee to identify
and fix the operational inefficiencies and prepare a time bound action
plan for revival of the loss making PSUs.
 The State Government should analyse the business models of the loss
making PSUs in order to address the root cause of the losses and further
consider the sustainability of these business models employed as they
are a drain on the public exchequer.
 State Government may ensure timely submission of Financial
Statements of PSUs, as in the absence of finalisation of accounts,
Government investments in such PSUs remain outside the oversight of
the State Legislature.
.

(C. NEDUNCHEZHIAN)
Chennai Principal Accountant General (Audit-I),
The 18 June 2024 Tamil Nadu

Countersigned

(GIRISH CHANDRA MURMU)

New Delhi Comptroller and Auditor General of India
The 27 June 2024

137
APPENDICES
 Appendix 1.1
(Reference: Paragraph 1.2)
State Profile
A. General Data
Sl. No. Particulars Figures
1 Area 1,30,058 sq.km.
Population
2 (a) As per 2011 Census 7.21 crore
(b) in 2023***** 7.69 crore
(a) Density of Population (as per 2001 Census) (All India Density = 325 persons 480 persons
per sq.km) per sq.km.
3
590.96 persons
(b) Density of Population (2023) (All India Density = 422.26 persons per sq.km)
per sq.km.
4 Population below poverty line* (BPL) (All India Average = 21.92 per cent) 11.28 per cent

5 Literacy** (as per 2011 Census) (All India Average = 73.00 per cent) 80.10 per cent

Infant mortality*** (per 1,000 live births) (All India Average (2020) = 28 per
6 13
1,000 live births)
7 Life Expectancy at birth**** (All India Average (2016-20) = 70 years) 73.2
Gross State Domestic Product (GSDP) 2022-23 at current prices 23,64,514 crore
8
Per capita GSDP CAGR (2013-14 to 2022-23) 9.88 per cent

9 GSDP CAGR* (2013-14 to 2022-23) Tamil Nadu 10.43 per cent

Population and Decadal Growth (2013 to

10 Tamil Nadu 5.08 per cent
2023*****)
B. Financial Data
Particulars
2021-22 to 2022-23
CAGR@ General States Tamil Nadu
(In per cent)
a of Revenue Receipts 13.41 17.47
b of Own Tax Revenue 19.78 22.27
c of Non Tax Revenue 12.94 40.81
d of Total Expenditure 12.53 10.88
e of Capital Expenditure 14.18 6.81
f of Revenue Expenditure on Education 13.21 15.91
g of Revenue Expenditure on Health 0.88 (-) 1.51
of Revenue Expenditure on Salaries
h 8.52 13.28
and Wages
i of Revenue Expenditure on Pension 11.38 25.39
* Ministry of Statistics and Programme Implementation (MoSPI)
** Economic Survey 2021-22
*** Sample Registration Systems (SRS) Bulletin (2020)
**** SRS based Abridged Life Tables 2016-20, Registrar General of India
***** Population Projections for India and States 2011-2036 by National Commission on Population, Ministry of Health &Family Welfare
@ Compound Annual Growth Rate
(Source: Financial data is based on Finance Accounts of State Government)

139
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 1.2
(Reference: Paragraph 1.4)
Part A: Structure and Form of Government Accounts
Structure of Government Accounts: The accounts of the State Government are kept in three parts (i) Consolidated Fund,
(ii) Contingency Fund and (iii) Public Account.
Part I: Consolidated Fund: All Receipts and Expenditure on Revenue and Capital Account, Public Debt and Loans and
Advances forms the Consolidated Fund of the State.
Part II: Contingency Fund: Legislature may by law establish a Contingency Fund which is in the nature of an imprest.
The Fund is placed at the disposal of the Governor to enable advances to be made for meeting unforeseen
expenditure pending authorisation of such expenditure by the State Legislature. The fund is recouped by debiting
the expenditure to the functional major head concerned in the Consolidated Fund of the State.
Part III: Public Account: All other public moneys received by or on behalf of the Government are credited to the Public
Account. The expenditure out of this account is not subject to the vote of the Legislature. In respect of the receipts
into this account, Government acts as a banker or trustee. Transactions relating to Debt (other than Public Debt in
Part I), Deposits, Advances, Reserve Funds, Remittances and Suspense form the Public Account.
Part B: Layout of Finance Accounts
Statement Title Layout
Volume I
Statement No.1 Statement of Financial Position Cumulative figures of assets and liabilities of the Government, as they
stand at the end of the year, are depicted in the statement. The assets
are valued at historical cost. The assets comprise Financial Assets and
Physical Assets. The latter are shown against “(i) Capital Expenditure
and (ii) Other Capital Expenditure” in this Statement.
Statement No.2 Statement of Receipts and This is a summarised statement showing all receipts and
Disbursements disbursements of the Government during the year in all the three parts
in which Government account is kept, namely, the Consolidated Fund,
Contingency Fund and Public Account. Further, within the
Consolidated Fund, receipts and expenditure on revenue and capital
account are depicted distinctly.
Statement No.3 Statement of Receipts (Consolidated This Statement comprises revenue and capital receipts and receipts
Fund) from borrowings of the Government consisting of loans from the
Government of India, other institutions, market loans raised by the
Government and recoveries on account of loans and advances made
by the Government.
Statement No.4 Statement of Expenditure This Statement not only gives expenditure by function (activity) but
(Consolidated Fund) also summarises expenditure by nature of activity (objects of
expenditure).
Statement No. 5 Statement of Progressive Capital This Statement details progressive capital expenditure by functions,
Expenditure the aggregate of which is depicted in Statement 1.
Statement No.6 Statement of Borrowings and other Borrowings of the Government comprise market loans raised by it
Liabilities (internal debt) and Loans and Advances received from the
Government of India. Both these together form the public debt of the
State Government. In addition, this summary statement depicts ‘other
liabilities’ which are the balances under various sectors in the Public
Account. In respect of the latter, the Government acts as a trustee or
custodian of the funds, hence, these constitute liabilities of the
Government. The Statement also contains an Explanatory Note, i.e. a
note on the quantum of net interest charges met from Revenue
Receipts.
Statement No.7 Statement of Loans and Advances The Loans and Advances given by the State Government are depicted
given by the Government in Statement 1 and recoveries, disbursements feature in Statements 2,
3 and 4. Here, Loans and Advances are summarised sector and loanee
group wise. This is followed by a note on the recoveries in arrear in
respect of loans, details of which are maintained by the State
Government departments.

140
 Appendices

Statement Title Layout

Statement No.8 Statement of Investments of the The summarised position of Government investment in the share
Government capital of different concerns is depicted in this statement for the
current and previous year.
Statement No.9 Statement of Guarantees given by Sector wise summarised statement of Guarantees given by the
the Government State Government for repayment of Principal and interest on loans
raised during the year and sums guaranteed outstanding as at the
end of the year are presented in this Statement.
Statement No.10 Statement of Grants-in-aid given This Statement has been presented grantee institutions group wise.
by the Government It includes a note on grants given in kind also.
Statement No.11 Statement of Voted and Charged This Statement presents details of voted and charged expenditure
Expenditure of the Government.
Statement No.12 Statement on Sources and The capital and other expenditure (other than on revenue account)
Application of funds for and the sources of fund for the expenditure are depicted in this
expenditure other than on Revenue Statement.
Account
Statement No.13 Summary of balances under This statement assists in providing the accuracy of the accounts.
Consolidated Fund, Contingency
Fund and Public Account
Volume II
Statement No.14 Detailed Statement of Revenue This Statement presents the revenue and capital receipts of the
and Capital Receipts by minor Government in detail.
heads
Statement No.15 Detailed Statement of Revenue This Statement presents the details of revenue expenditure of the
Expenditure by minor heads Government in detail. A comparison with the figures for the
previous year is available.
Statement No.16 Detailed Statement of Capital This Statement presents the details of capital expenditure of the
Expenditure by minor heads and Government in detail. A comparison with the figures for the
sub heads previous year is available. Cumulative capital expenditure up to
the end of the year is also depicted.
Statement No.17 Detailed Statement of Borrowings Details of borrowings (market loans raised by the Government and
and other Liabilities Loans, etc., from GoI) by minor heads, the maturity and repayment
profile of all loans are provided in this statement. This is the
detailed statement corresponding to Statement 6.
Statement No.18 Detailed Statement of Loans and Details of loans and advances given by the Government, the
Advances given by the changes in loan balances, loans written off, interest received on
Government loans etc., are presented in this statement. This is the detailed
statement corresponding to Statement 7.
Statement No.19 Detailed Statement of Investments Details of the position of Government Investment in the share
of the Government capital of different concerns are depicted in this statement for the
current and previous year. Details include type of shares held, face
value, dividend received, etc.
Statement No.20 Detailed Statement of Guarantees Guarantees given by the State Government for repayment of loans,
given by the Government etc., raised by Statutory Corporations, Government Companies,
Local Bodies and other institutions during the year and sums
guaranteed outstanding as at the end of the year are presented in
this Statement.
Statement No.21 Detailed Statement on This Statement shows changes in Contingency Fund during the
Contingency Fund and Public year, the appropriations to the Fund, expenditure, amount
Account transactions recouped, etc. It also depicts the transactions in Public Account in
detail.
Statement No.22 Detailed Statement on Investments This Statement shows the details of investment out of Reserve
of Earmarked Funds Funds in Public Account.

141
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 1.3
(Reference: Paragraph 1.4)
Part A: Methodology adopted for assessment of Fiscal Position
The norms/ceilings prescribed by the FFC for selected fiscal variable along with its projections for a set of fiscal
aggregates and the commitments/projections made by the Government in the Tamil Nadu Fiscal Responsibility Act,
2003 and in other Statements required to be laid in the Legislature under the Act (Part B of this Appendix) are used to
make qualitative assessment of the trends and patterns of major fiscal aggregates. Assuming that GSDP is the good
indicator of the performance of the State’s economy, major fiscal aggregates like tax and non-tax revenue, revenue and
capital expenditure, internal debt and revenue and fiscal deficits have been presented as percentage to the GSDP at
current prices. The buoyancy coefficients for relevant fiscal variables with reference to the base represented by GSDP
have also been worked out to assess as to whether the mobilisation of resources, pattern of expenditure etc., are keeping
pace with the change in the base or these fiscal aggregates are also affected by factors other than GSDP.
The definitions of some of the selected terms used in assessing the trends and patterns of fiscal aggregates are given
below:
Terms Basis for calculation
Buoyancy of a parameter Rate of Growth of the parameter/GSDP Growth
Buoyancy of a parameter (X) Rate of Growth of parameter (X)/
with respect to another parameter (Y) Rate of Growth of parameter (Y)
Rate of Growth (ROG) [(Current year Amount/Previous year Amount)-1] * 100
Development Expenditure Social Services expenditure + Economic Services expenditure
Average interest paid by the State Interest payment/[(Amount of previous year’s Fiscal Liabilities +
Current year’s Fiscal Liabilities)/2] * 100
Interest receipts as percentage of outstanding Interest Received = [(Opening balance + Closing balance of Loans
Loans and Advances and Advances)/2] * 100
Revenue Surplus Revenue Receipts- Revenue Expenditure
Fiscal Surplus Revenue Receipts + Miscellaneous Capital Receipts - (Revenue
Expenditure + Capital Expenditure + Net Loans and Advances)
Primary Surplus Fiscal Surplus - Interest payments
Part B: The Tamil Nadu Fiscal Responsibility Act, 2003

The State Government enacted the Tamil Nadu Fiscal Responsibility Act, 2003 which was amended first to bring it in
line with the requirements prescribed by the Twelfth Finance Commission followed by Thirteenth, Fourteenth and
Fifteenth Finance Commissions to ensure prudence in fiscal management and fiscal stability by progressive elimination
of revenue deficit, sustainable debt management consistent with fiscal stability, greater transparency in fiscal operations
of the Government and conduct of fiscal policy in a medium term fiscal framework. The Act prescribed the following
fiscal management targets:
(a) Reduce the ratio of revenue deficit to revenue receipts every year by three to five per cent depending on the
economic situation in that year beginning from financial year 2002-03 and eliminate revenue deficit by
2023-24 and adhere to it thereafter.
(b) Maintain the ratio of fiscal deficit to GSDP as not more than three per cent by 31 March 2024 and adhere to it
thereafter.
(bb) Maintain the ratio of total outstanding debt to GSDP with medium term goal of not being more than
24.50 per cent during 2011-12; 24.80 per cent during 2012-13; 25.00 per cent during 2013-14; 25.20 per cent
during 2014-15 and thereafter maintain such per cent as may be prescribed.
(c) Cap outstanding guarantees within 100.00 per cent of revenue receipts of previous year or 10.00 per cent of
GSDP, whichever is lower.

142
 Appendices

Appendix 2.1
(Reference: Paragraph 2.1)
Time series data on the State Government finances
(₹ in crore)
2018-19 2019-20 2020-21 2021-22 2022-23
Part A. Receipts
1 Revenue Receipts 1,73,741 (38) 1,74,526 (34) 1,74,076 (28) 2,07,492 (33) 2,43,749 (30)
(i) Own Tax Revenue 1,05,534 (61) 1,07,462 (62) 1,06,153 (61) 1,22,866 (59) 1,50,223 (62)
State Goods and Service Tax (SGST) 38,533 (37) 38,376 (36) 37,942 (36) 45,277 (37) 53,823 (36)
Taxes on Agricultural Income .. .. .. .. ..
Taxes on Sales, Trade, etc. 42,701 (40) 44,515 (41) 43,489 (41) 48,668 (40) 59,143 (39)
State Excise 6,863 (7) 7,206 (7) 7,822 (7) 8,237 (7) 10,423 (7)
Taxes on Vehicles 5,573 (5) 5,675 (5) 4,561 (4) 5,627(5) 7,513 (5)
Stamps and Registration fees 11,066 (10) 10,856 (10) 11,675 (11) 14,331 (12) 17,560 (12)
Land Revenue 178 (..) 258 (..) 211 (..) 205 (..) 248 (..)
Taxes on Goods and Passengers 3 (..) 11 (..) 2 (..) 12 (..) 5 (..)
Other Taxes 617 (1) 565 (1) 451 (..) 509 (..) 1,508 (1)
(ii) Non-Tax Revenue 14,200 (8) 12,888 (7) 10,422 (6) 12,117 (6) 17,061 (7)
(iii) State’s share of Union taxes and duties 30,639 (18) 26,393 (15) 24,924 (14) 37,458 (18) 38,731 (16)
(iv) Grants-in-aid from Government of India 23,368 (13) 27,783 (16) 32,577 (19) 35,051 (17) 37,734 (15)
2 Miscellaneous Capital Receipts .. .. .. .. 42 (..)
3 Recoveries of Loans and Advances 6,913 (1) 5,384 (1) 5,245 (1) 5,355 (1) 1,078 (..)
4 Total Revenue and Non debt capital receipts (1+2+3) 1,80,654 1,79,910 1,79,321 2,12,847 2,44,869
5 Public Debt Receipts 47,936 (10) 66,774 (13) 1,02,867 (17) 1,04,485 (17) 1,01,062 (12)
Internal Debt (excluding Ways and Means Advances and
45,596 64,784 91,997 90,843 90,807
Overdrafts)
Net transactions under Ways and Means Advances and
.. .. .. .. ..
Overdrafts
Loans and Advances from Government of India 2,340 1,990 10,870 13,642 10,255
6 Total Receipts in the Consolidated Fund (4+5) 2,28,590 2,46,684 2,82,188 3,17,332 3,45,931
7 Contingency Fund Receipts .. 10 .. .. ..
8 Public Account Receipts 2,34,439 (51) 2,61,483 (52) 3,36,178 (54) 3,98,157 (56) 4,79,342 (58)
9 Total Receipts of the State (6+7+8) 4,63,029 5,08,177 6,18,366 7,15,489 8,25,273
Part B. Expenditure/Disbursement
10 Revenue Expenditure 1,97,200 (42) 2,10,435 (42) 2,36,402 (39) 2,54,030(36) 2,79,964 (34)
General Services (including interest payments) 72,450 78,138 78,993 84,894 99,097
Social Services 70,202 73,999 89,805 88,749 88,967
Economic Services 39,669 42,610 51,808 60,898 71,974
Grants-in-aid and contributions 14,879 15,688 15,796 19,489 19,926
11 Capital Expenditure 24,311 (5) 25,632 (5) 33,067 (5) 37,011 (5) 39,530 (5)
Plan .. .. .. .. ..
Non Plan .. .. .. .. ..
General Services 858 1,064 936 780 1,041
Social Services 6,996 5,860 10,831 14,985 14,324
Economic Services 16,457 18,708 21,300 21,246 24,165
12 Disbursement of Loans and Advances 6,478 (1) 4,022 (1) 3,835 (1) 3,641 (1) 7,261 (1)
13 Total (10+11+12) 2,27,989 2,40,089 2,73,304 2,94,682 3,26,755
14 Repayments of Public Debt 15,064 (3) 17,866 (3) 16,228 (3) 19,737 (3) 27,105 (3)
Internal Debt (excluding Ways and Means Advances and
13,881 16,510 14,874 18,385 25,377
Overdrafts)
Net transactions under Ways and Means Advances and
.. .. .. .. ..
Overdraft
Loans and Advances from Government of India 1,183 1,356 1,354 1,352 1,728
15 Appropriation to Contingency Fund .. .. .. .. ..
16 Total disbursement out of Consolidated Fund (13+14+15) 2,43,053 2,57,955 2,89,532 3,14,419 3,53,860
17 Contingency Fund disbursements 10 .. .. .. ..
2,23,930 2,44,023 3,23,189 3,83,757 4,62,459
18 Public Account disbursements
(48) (49) (53) (55) (57)
19 Total disbursement by the State (16+17+18) 4,66,993 5,01,978 6,12,721 6,98,176 8,16,319

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

2018-19 2019-20 2020-21 2021-22 2022-23

Part C. Deficits/Surplus
20 Revenue Deficit (1-10) 23,459 35,909 62,326 46,538 36,215
21 Fiscal Deficit (4-13) 47,335 60,179 93,983 81,835 81,886
22 Primary Deficit (21+23) 18,578 28,199 57,486 40,271 34,975
Part D. Other data
23 Interest Payments (included in revenue expenditure) 28,757 31,980 36,497 41,564 46,911
24 Financial Assistance to Local Bodies, etc., 14,880 15,688 15,796 19,489 19,926
25 Ways and Means Advances/Overdraft availed (days)
Ways and Means Advances availed (days) .. .. .. .. ..
Overdraft availed (days) .. .. .. .. ..
26 Interest on Ways and Means Advances/Overdraft .. .. .. .. ..
27 Gross State Domestic Product (GSDP) 16,30,209 17,43,144 17,88,074 20,71,286 23,64,514
28 Outstanding Fiscal liabilities (year-end) 3,68,736 4,23,743 5,18,796 6,10,667 6,91,591
29 Outstanding guarantees (year-end) (including interest) 44,163 47,319 65,659 91,975 90,709
30 Maximum amount guaranteed (year-end) 83,140 4,669 44,656 64,176 40,565
Part E: Fiscal Health Indicators
I Resource Mobilisation
31 Own Tax revenue/GSDP 6.47 6.16 5.94 5.93 6.35
32 Own Non-Tax Revenue/GSDP 0.87 0.74 0.58 0.58 0.72
33 Central Transfers/GSDP 1.88 1.51 1.39 1.81 1.64
II Expenditure Management
34 Total Expenditure/GSDP 13.99 13.77 15.28 14.23 13.82
35 Total Expenditure/Revenue Receipts 131.22 137.57 157.00 142.02 134.05
36 Revenue Expenditure/Total Expenditure 86.50 87.65 86.50 86.20 85.68
37 Revenue Expenditure on Social Services/Total Expenditure 30.79 30.82 32.86 30.12 27.23
38 Revenue Expenditure on Economic Services/Total Expenditure 17.40 17.75 18.96 20.67 22.03
39 Capital Expenditure/Total Expenditure 10.66 10.68 12.10 12.56 12.10
40 Capital Expenditure on Social and Economic Services/Total 10.29 10.23 11.76 12.29 11.78
Expenditure
III Management of Fiscal Imbalances
41 Revenue deficit/GSDP 1.44 2.06 3.49 2.25 1.53
42 Fiscal deficit/GSDP 2.90 3.45 5.26 3.95 3.46
43 Primary Deficit/GSDP 1.14 1.62 3.21 1.94 1.48
44 Revenue Deficit/Fiscal Deficit 49.56 59.67 66.32 56.87 44.23
IV Management of Fiscal Liabilities
45 Fiscal Liabilities/GSDP 22.62 24.31 28.67 28.79 28.64
46 Fiscal Liabilities/RR 212.23 242.80 298.03 294.31 283.73
47 Debt Redemption (Principal +Interest)/Total Debt Receipts 82.14 66.73 45.89 52.89 66.58
V Other Fiscal Health Indicators
48 Return on Investment 0.62 0.45 0.37 0.49 0.68
49 Financial Assets/Liabilities 0.83 0.79 0.76 0.66 0.63
Figures in brackets represent percentages (rounded) to total of each sub-heading
Explanatory Notes
The abridged accounts in the foregoing statements have to be read with comments and explanations in the Finance
Accounts. Government accounts being mainly on cash basis, the deficit on Government account,
indicates the position on cash basis, as opposed to accrual basis in commercial accounting. Consequently, items
payable or receivable or items like depreciation or variation in stock figures, etc., do not figure in the accounts.
Suspense and Miscellaneous balances include cheques issued but not paid, payments made on behalf of the State
and other pending settlements, etc.

144
 Appendices

Appendix 2.2
(Reference: Paragraph 2.3.2.3)
Delay in release of funds to Single Nodal Agency (SNA)

Delay in transfer of Central Government share

(₹ in crore)
Sl. Name of the Central Central Date of Actual date of Delay
No. scheme Government Government Central transfer of in days
release release date Government Central
amount share to be Government
transferred to share
SNA (21 days
from the date
of central
release)
1. Implementation of 5.01 17-01-2023 07-02-2023 17-02-2023 10
Project Tiger
Scheme
2. PMAY 160.83 25-03-2022 15-04-2022 05-05-2022 20

Delay in transfer of State Government share

(₹ in crore)
Sl. Name of the State share Date of State Government Actual date of Delay
No. scheme amount share to be released (40 release of state in
days from the date of Government share days
release of central
Government)
1. National Mission 1.13 05-11-2022 25-11-2022 20
on Edible Oil –
Oil Palm
2. PMAY 107.22 04-05-2022 05-05-2022 1
(Source : Details furnished by the Department)

145
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 2.3
(Reference: Paragraph 2.4.2.5)
Recoveries of ₹ one crore and above under ‘Minor Head – 911’
Recovery of
Sl.
Head of Account Description Expenditure
No
(in ₹)
Dr. Muthulakshmi Reddy Maternity Assistance Scheme for the female
1 2235.60.200.KG 5,84,54,58,000
members of Below Poverty Line families for delivery(200)
State's Share towards Premium Subsidy under Pradhan Mantri Fasal Bima
2 2401.00.110.JJ 2,25,21,90,159
Yojana (PMFBY) for Agriculture Crops
Interest Subsidy to Co-operative institutions towards reduced interest for
3 2425.00.108.KD 1,97,27,49,306
crop loans to the farmers
4 2210.06.101.KE Menstrual Hygiene Programme 1,47,64,55,986
5 2210.80.789.JC Chief Ministers Comprehensive Health Insurance Scheme 1,33,67,74,000
6 2405.00.103.JS Livelihood Support to Coastal Fishermen during the Fishing ban period 52,65,38,000
7 2225.01.277.KM Educational Concessions 40,96,71,957
8 2217.80.001.AG Regional Town Planning 28,62,69,790
Grants to Sports Development Authority of Tamil Nadu for conducting
9 2204.00.104.KR 25,05,12,000
Sports Competitions
World Bank assisted scheme under Emergency Tsunami Reconstruction
10 2070.00.800.QA 25,04,50,000
Project (ETRP) - Project Management Unit - Revenue Administration
11 2225.03.277.SA Scholarships to Students belonging to Minority Communities 13,46,28,937
Establishment charges for the provincialised employees of the
12 2435.01.101.AC 11,64,00,000
Agricultural market committees
13 2203.00.108.AA Conduct of Examinations 11,63,24,391
Disaster preparedness / preventive measures to contain the outbreak of
14 2245.80.800.AH 9,90,63,582
Corona Virus (Covid-19)
15 2852.08.202.JA Grants to SIPCOT for setting up of Textile Park 9,00,00,000
Puratchithalaivar MGR Nutritious Meal Programme for children in the age
16 2236.02.102.KN 8,48,11,824
group of 10 to 14 in the Government and aided schools
17 2071.01.101.AA Payment to Tamil Nadu Government Pensioners 7,41,79,964
Schemes implemented in Urban Local Bodies under Infrastructure and
18 2217.05.800.KA 6,68,75,540
Amenities Fund
19 2217.80.001.AA Director of Town Planning 5,92,04,077
20 2041.00.800.AG Implementation of Road Safety Programme 5,89,83,008
Supply of Text Books under Special Component Plan Directorate of
21 2225.01.789.JA 5,41,11,213
Elementary Education
22 2210.06.003.AB Training of Health Visitors 5,33,49,954
23 2071.01.117.AA Government Contribution for Tamil Nadu Government Employees 4,93,75,591
24 2202.01.108.JC Supply of Text Books to Students 4,61,52,040
Special Scholarship Scheme to Scheduled Caste students who are at post-
25 2225.01.277.AV 4,54,13,345
matric level
26 2071.01.101.AC Dearness Allowance to Pensioners 4,39,74,356
Interest Subsidy to Scheduled Castes for the Construction of Houses under
27 2225.01.283.JA 4,39,50,392
Rural Housing Schemes
28 2403.00.101.KR Livestock Protection Programme 4,31,58,163
29 2250.00.103.AE Repairs to Temples 3,97,22,914
Subsidy to Small and Marginal Farmers for Agricultural Inputs due to
30 2245.02.114.AA 3,67,66,647
Flood
31 2225.01.277.AA School Education 3,55,79,059
32 2235.60.102.UA Social Security Net - Indira Gandhi National Old Age Pension 3,45,68,456
33 2202.02.004.JJ State Council of Educational Research and Training 3,18,93,443
34 2071.01.105.AA Family pension to Tamil Nadu Government pensioners 3,09,01,479
35 2225.01.800.JB Assistance to Technically Trained persons 2,99,63,377
Financial Assistance for Marriage of Girls Below Poverty Line under
36 2235.02.103.LT 2,93,60,670
"Moovalur Ramamirtham Ammaiyar Ninaivu Thirumana Thittam"

146
 Appendices

Recovery of
Sl.
Head of Account Description Expenditure
No
(in ₹)
37 2217.01.001.AA Transport and Traffic Studies for Class I Cities 2,59,69,625
Payment of premium for Tamil Nadu Co-operative Handloom Weavers
38 2851.00.103.KN 2,44,51,463
under Bunkar Bima Yojana Scheme
39 2225.01.277.SF Government of India Pre-Matric Scholarship 2,38,44,675
40 2235.60.200.JK Free distribution of Handloom Cloth to the People Below Poverty Line 2,37,27,381
Interest on Defined Contributory Pension Scheme for Tamil Nadu State
41 2049.03.117.AE (C) 2,31,09,762
Government Employees-Government Contribution
42 2210.01.110.AA District Headquarters Hospitals 2,31,02,233
Establishment for Acquisition of Lands for Growth Centre by SIPCOT
43 2053.00.094.AN 2,07,97,570
Limited
Establishing Crushing Blocks for the Preservation of Fishes at Fishing
44 2405.00.103.KB 2,00,00,000
Harbours in Tamil Nadu
45 2852.07.101.AC Amma Call Centre 1,71,55,658
46 2225.01.277.SA Educational Concessions 1,54,15,503
Dr.Muthulakshmi Reddy Maternity Assistance Scheme for the female
47 2235.60.789.JC members of below poverty line families for delivery under Special 1,36,96,000
Component Plan
48 2029.00.001.SA Census of Irrigation Schemes Plan 1,31,31,367
49 3456.00.102.UB Fortification of Rice and its distribution under Public Distribution System 1,05,23,177
Integrated Cereals Development in Coarse Cereals (ICDP coarse cereal)
50 2401.00.793.UA 1,04,17,612
Accelerated Maize Development Programme (AMDP)
51 2205.00.102.AA Encouragement of Artists and Men of Letters 1,02,59,582
Financial Assistance for Marriage of Girls Below Poverty Line under
52 2235.02.789.JF "Moovalur Ramamirtham Ammaiyar Ninaivu Thirumana Thittam" under 1,02,00,000
Special Component Plan
Special incentive scheme to promote literacy among scheduled caste girls
53 2225.01.377.JY 1,01,59,136
studying VI standard to VIII standard
54 2405.00.911.UB Relief Scheme for Tamil Nadu Marine Fishermen during Lean Months 1,00,29,910
Total 16,46,17,72,274
(Source: Detailed Appropriation Accounts for the year 2022-23)

147
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 2.4
(Reference: Paragraph 2.4.3.2 (i))
‘Differences in balances between Statement 16 and Statement 19’
(₹ in lakh)
Investment at
Investment at
the end of 31
the end of 31
Sl. No Head of Account / Investment in March 2023 Difference
March 2023 as
as per
per Statement 19
Statement 16
4217-60-190 Investments in Chennai
1 3,63,378.00 5,55,192.27 (-) 1,91,814.27
Metro Rail Limited
4225-01-190 Investments in Tamil Nadu
2 Adi Dravidar Housing and Development 9,659.50 10,996.50 (-) 1,337.00
Corporation
4406-01-190 Investment in Tamil Nadu
3 564.00 376.00 188.00
Forest Plantation Corporation Limited
4407-03-190 Investments in Arasu
4 1,307.00 845.00 462.00
Rubber Corporation Limited
4801-80-190 Investments in Tamil Nadu
5 Power Finance and Infrastructure 3,76,700.00 5,000.00 3,71,700.00
Development Corporation
4851-00-190 Investments in Tamil Nadu
6 Small Industries Development 2,514.00 870.00 1,644.00
Corporation Limited
4853-01-190 Investments in Tamil Nadu
7 1,573.89 1,339.00 234.89
Minerals Limited
4860-04-190 Investments in Tamil Nadu
8 21,824.36 1,33,349.58 (-) 1,11,525.22
Sugar Corporation Limited
4875-60-190 Investments in State
9 Industries Promotion Corporation of 11,417.51 5,791.25 5,626.26
Tamil Nadu Limited
4875-60-190Investments in Tamil Nadu
10 11,131.80 3,741.80 7,390.00
Cements Corporation Limited
5055-00-190 Investments’ in
11 Metropolitan Transport Corporation 8,90,290.15 86,006.39 8,04,283.76
(Chennai) Limited Chennai
5055-00-190 Investments in Tamil Nadu
12 State Transport Developments Finance 2,98,128.82 2,52,922.82 45,206.00
Corporation Limited
5055-00-190 Investments in Tamil Nadu
13 State Transport Corporation (Salem) 61,589.68 59,475.19 2,114.49
Limited
5055-00-190 Investments in Tamil Nadu
14 State Transport Corporation (Villupuram) 84,833.58 77,644.15 7,189.43
Limited
5055-00-190 Investments in Tamil Nadu
15 State Transport Corporation (Madurai) 80,602.62 94,773.06 (-) 14,170.44
Limited
5055-00-190 Investments in Tamil Nadu
16 State Transport Corporation (Tirunelveli) 90,282.02 82,323.98 7,958.04
Limited
5055-00-190 Investments in Tamil Nadu
17 State Transport Corporation 98,488.01 97,484.02 1,003.99
(Coimbatore) Limited

148
 Appendices

(₹ in lakh)
Investment at
Investment at
the end of 31
the end of 31
Sl. No Head of Account / Investment in March 2023 Difference
March 2023 as
as per
per Statement 19
Statement 16
5055-00-190 Investments in State
18 Express Transport Corporation (Tamil 69,838.78 59,206.22 10,632.56
Nadu) Limited Chennai
5452-80-190 Investments in Tamil Nadu
19 Tourism Development Corporation 1,042.74 892.74 150.00
Limited
4875-60-190 Tamil Nadu Industrial
20 30,352.28 26,602.28 3,750.00
Investment Corporation
4225-03-190 Investment in Tamil Nadu
21 Minorities Economic Development 205.01 305.00 (-) 99.99
Corporation Limited
4860-60-190 Investment in Tamil Nadu
22 1,134.03 634.02 500.01
salt Corporation
4215-02-190 Share Capital assistance to
23 New Tiruppur Area Development 12,371.79 15,000.00 (-) 2,628.21
Limited
(Source: Finance Accounts 2022-23)

149
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 3.1
(Reference: Gender Budgeting –Para 3.3.4)
Token provision given and withdrawn under Gender Budgeting under Part A
(in ₹)
SL No Name of the Scheme Head of Account Provision
2203.00.105.SB
Construction of Women's Hostel in Government Aided
1 Polytechnics under the Sub-Mission on Polytechnics under 2203.00.793.SB 3,000
Co-ordinated Action for Skill Development
2203.00.794.SB
2 Conventional Contraceptives 2211.00.200.SE 1,000

Early Intervention Programme for the Children with

3 2235.02.101.DH 4,000
development delay to the age group of 0-6 years

Imparting school preparedness and child health outcome

4 through Integrated Child Development Services Scheme - 2236.02.101.JQ 1,000
Scheme under State Innovation Fund

Supply of Teaching , Training and Sports material for

5 Early Intervention Centres for the Hearing Impaired 2235.02.101.DK 1,000
Children
Starting of Creches for children of working and ailing
6 2235.02.102.BO 1,000
mothers

7 Special Nutrition for children and Lactating mothers 2245.02.282.AB 1,000

8 Construction of Working Women’s Hostels 4225.01.800.JE 1,000

Construction of Girls Hostels for Scheduled Caste /

9 4225.01.277.SB 1,000
Scheduled Tribes Students

Free Supply of Bicycles to all girl students belonging to

Scheduled Tribes studying in Standard XI and XII in the
10 2225.02.277.BL 1,000
Government / Government Aided Higher Secondary
Schools

2403.00.800.JH
2403.00.800.JI
Free distribution of Sheep / Goat to the persons living 2403.00.796.JD
11 6,000
Below Poverty Line 2403.00.796.JE
2403.00.789.JE
2403.00.789.JF
2501.06.102.UA
2501.06.102.UC
2501.00.793.UC
12 Mahila Kisan Sashaktikaran Pariyojana (MKSP) 6,000
2501.06.793.UG
2406.06.794.UC
2406.06.794.UG

150
 Appendices

Appendix 3.2
(Reference: Paragraph 3.5.1.4)
(a) Cases where Supplementary provision (₹ 50 lakh or more in each scheme)
proved unnecessary
(₹ in lakh)
Head of Original Actual Supplementary
SL Grant Nomenclature
Account Provision Expenditure Provision
No. No.
(A) Revenue (Voted)
1 01 2011.02.103.AA State Legislative Assembly Secretariat 3,652.15 3,483.35 163.95
Establishment of Special Courts for exclusive
2 2014.00.103.AA 895.18 821.28 66.09
trial of Central Bureau of Investigation cases
03
3 2014.00.106.AA Presidency Small Causes Courts 1,330.31 1,254.38 56.33
4 2014.00.107.AA Regular Establishments 2,400.14 2,318.31 228.00
Institute of Veterinary Preventive Medicine,
5 2403.00.101.AC 1,201.81 1130.99 73.26
Ranipet
Implementation of Bio Medical Waste
6 2403.00.101.LD 0.01 0.00 749.99
06 management in veterinary Institution.
7 2403.00.102.AR Cattle Breeding Units 2,967.07 2,848.20 219.15
Grants to Tamil Nadu Veterinary and Animal
8 2415.03.277.AA 27,519.37 21,252.21 643.59
Sciences University
National Agriculture Development Programme
9 07 2405.00.101.UC 185.34 147.96 59.81
(NADP-RKVY) - Fisheries Department
10 09 2225.04.001.AC District Staff - Minorities Welfare Department 631.05 613.23 173.55
11 17 2852.08.202.AP Commissionerate of Textiles 1,314.85 1,266.69 170.01
12 2210.05.105.AL Improvements of Medical Colleges 59,673.08 56,903.34 264.66
19 Public Health Laboratory, King Institute at
13 2210.06.107.AD 2,489.92 2,457.05 700.02
Guindy
Establishment for Land Acquisition under
14 3054.03.337.AC Chennai - Kanyakumari Industrial Corridor 1,442.00 1,280.30 100.00
21 Project
Major District Roads - Road Maintenance (Core
15 3054.04.337.AA 12,613.54 12,387.67 50.00
Segment)
16 22 2055.00.109.AA District Police 4,52,715.95 4,24,316.14 75.12
17 24 2056.00.102.AA Jails (other than Approved Schools) 3,169.51 3,134.28 100.00
18 28 2220.60.110.AC Printing and Publication of Tamil Arasu 780.66 692.55 180.55
19 33 2202.03.103.AE Law Colleges 4,687.67 4,495.83 135.56
20 2052.00.090.AT Human Resources Management Department 2,205.89 2,119.65 184.97
35
21 2052.00.090.AT Human Resources Management Department 2,205.89 2,119.65 184.97
Awareness Building, Capacity Building,
22 36 3475.00.800.JI Evaluation, Documentation and Awards for 500.00 27.57 250.00
Innovation
Headquarters Establishment - Commissioner of
23 37 2039.00.001.AA 13,068.25 11,845.91 299.72
Prohibition and Excise Department
24 2015.00.103.AA Legislative Assembly Constituencies 14,926.08 14,352.56 1,465.64
Scheme of Issue of Photo Identity Cards to
25 2015.00.108.AA 1,250.20 931.22 769.29
38 Voters
26 2052.00.090.AA Chief Secretariat 4,382.31 3,983.67 107.99
27 2052.00.090.AM Charges Common to all Civil Secretariat 2,258.97 2,011.35 448.27
28 39 2059.80.001.BH Executive Engineers - Special Divisions 11,416.29 11,191.97 866.26

151
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in lakh)
Head of Original Actual Supplementary
SL Grant Nomenclature
Account Provision Expenditure Provision
No. No.
Buildings - Schools (Administered by Chief
29 43 2059.01.053.AR 15,000.00 14,840.32 8,619.50
Engineer (Buildings))
Managerial Training for Field and Executive
30 45 2235.02.103.BP 39.50 16.13 51.04
Staff
31 2202.03.102.AI Tamil University, Thanjavur 2,893.37 2,801.25 95.26
32 46 2202.05.001.AA Directorate of Tamil Development 1,385.18 1,329.81 97.36
33 2202.05.102.AG Grants to Madurai Ulaga Tamil Sangam 145.75 145.00 61.64
34 2406.01.001.AB District Establishment 28,265.54 25,965.72 332.27
35 54 2406.01.001.AA General Direction 3,217.48 3,190.49 113.25
DGPS Survey of notified Forest Areas of Tamil
36 2406.01.101.JF 517.00 18.84 101.20
Nadu

(B) Capital (Voted)

National Agriculture Development
37 05 4401.00.103.UA Programme (NADP/RKVY)- Agriculture 4,650.00 1,932.71 745.96
Department
38 06 4403.00.105.AA Construction of Buildings 0.01 0.00 57.63
Construction of Buildings for Most
39 09 4225.03.277.JZ Backward Classes and Denotified 1,260.00 1,248.23 742.50
Communities Students
Buildings - Executed by Technical
40 20 4202.01.203.JB 24,778.43 15,433.89 300.02
Education Wing
Construction of over and under bridges in
41 5054.03.101.JG 13,231.33 6,903.94 732.02
lieu of Existing level crossings
42 21 5054.04.800.JK Acquisition of Lands for Bye Passes 17,983.76 2,997.46 749.01
Construction of Railway Over Bridges
43 5054.80.800.JT 26,804.16 18,492.23 4,100.02
/Railway Under Bridges
Construction of Buildings for Prison
44 24 4070.00.800.KE 509.89 136.62 390.10
Department
Repairs, Renovation and Maintenance of
45 29 4202.04.800.KH 1,649.23 79.77 63.36
Monuments etc., of Archaeological Sites
Development of I.T.I.s - Land and
46 32 4250.00.203.JG 64,046.70 56,499.23 500.02
Buildings
Setting up of 400 MLD Capacity Sea water
47 34 4215.01.101.PK Reverse Osmosis (SWRO) Desalination 15,615.00 13,291.81 7,806.87
plant at perur, Chennai
48 4059.01.051.JC Land Revenue 28,415.85 26,122.08 2,575.01
49 4059.01.051.JJ Public Works 18,111.17 8,934.67 250.01
50 39 4059.01.051.JG Administration of Justice 10,559.06 4941.43 3,959.12
51 4059.01.051.AR Transport Department 5,075.34 3,989.68 200.00
52 4059.01.051.JN Commercial Taxes 3,619.80 3,224.65 285.01
53 4700.01.800.CA Canals 1,12,662.72 61,915.64 200.00
54 4700.01.800.FA Barrage 9,772.71 6,007.26 50.00
55 4700.02.800.CB Canals-NABARD assistance 7,991.40 7,403.66 1,000.00
56 40 4700.05.800.CA Canals 28,412.00 23,511.54 99.37
57 4700.05.800.FB Barrage - NABARD Assistance 1,385.67 1,216.05 324.00
58 4701.01.800.DB WEIR - NABARD Assistance 4,609.00 3,117.87 500.00
59 4702.00.101.AF Parambikulam-Aliyar Basin Canal 125.99 125.77 194.91
Total 10,84,616.53 9,05,221.08 44,083.21

152
 Appendices

(b) Excess Supplementary provision (₹ 10 crore or more in each scheme)

(₹ in lakh)
Excess
Sl. Supple- Actual supple-
GRNT Classification Nomenclature Original
No. mentary Expenditure mentary
provision
Revenue – Charged
1. 03 2014.00.102.AA Judges and Registrars 22,791.13 5,035.19 26,812.47 (-) 1,013.85
Revenue - Voted
2. 03 2014.00.108.AA Regular Establishments 22,237.30 2,552.56 23,691.55 (-) 1,098.31
Mofussil, Civil and
3. 03 2014.00.105.AB Sessions Courts - Regular 48,785.41 10,306.92 58,041.88 (-) 1,050.45
Establishments
Establishment of Native
Chicken breeding farm,
4. 06 2403.00.103.AK Hatchery unit and Feed 0.00 1,381.92 130.43 (-) 1,251.49
Mill at Livestock Farm,
Chettinad.
Social safety Net - Food 7,50,000.0
5. 13 3456.00.103.AE 6,06,905.18 13,27,725.18 (-) 29,180.00
Security - PDS Support 0
Free distribution of
Handloom Cloth to the
6. 17 2235.60.200.JK 36,747.25 22,857.55 57,466.90 (-) 2,137.90
People Below Poverty
Line
Free Distribution of
Handloom Cloth to the
7. 17 2235.60.789.JS People Below Poverty 12,088.08 8,840.31 19,019.76 (-) 1,908.63
line under Special
Component Plan
Madurai Kamaraj
8. 20 2202.03.102.AC 5,400.01 5,320.00 6,695.67 (-) 4,024.34
University
Grants to Private colleges
1,62,955.3
9. 20 2202.03.104.AA (Arts and Oriental 7,968.08 1,67,339.53 (-) 3,583.87
2
colleges)
10. 20 2203.00.112.AA Engineering Colleges 7,945.91 2,150.40 8,800.04 (-) 1,296.27
Jails (other than Sub-
11. 24 2056.00.101.AA 24,325.03 2,890.73 25,756.87 (-) 1,458.89
Jails)
12. 28 2220.60.106.AM Social Media Campaign. 27.71 2,505.00 931.87 (-) 1,600.84
13. 41 2235.60.102.JE Destitute Widows Pension 54,219.67 3,625.65 54,742.45 (-) 3,102.87
Social Security Net -
14. 41 2235.60.102.JB Pension for the 34,686.85 8,259.34 40,513.74 (-) 2,432.45
Differently abled
Indira Gandhi National
15. 41 223560102UC Destitute Widow Pension 25,076.66 3,498.49 27,320.93 (-) 1,254.22
Scheme
Feeding to children in the
Age group of 5-9 under
Puratchi Thalaivar MGR
Nutritious Meal
16. 45 2236.02.102.UW 0.00 5,947.39 4,480.16 (-) 1,467.23
Programme - payment of
cost to Tamil Nadu Civil
Supplies Corporation for
supply of food articles
Assistance for
undertaking immediate
17. 51 2245.80.800.AA relief works in connection 0.07 8,929.86 7,232.10 (-) 1,697.83
with Flood / Fire /
Drought
Subsidy to Small and
Marginal Farmers for
18. 51 2245.02.114.AA 0.01 18,769.82 17,210.71 (-) 1,559.12
Agricultural Inputs due to
Flood

153
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in lakh)
Excess
Sl. Supple- Actual supple-
GRNT Classification Nomenclature Original
No. mentary Expenditure mentary
provision
Maintenance Allowance
19. 52 2235.02.101.CD to the Severely affected 45,000.00 4,295.60 48,051.23 (-) 1,244.37
Differently Abled Persons

Capital - Voted

Civil Works towards

20. 19 4210.01.200.PA Tamil Nadu Urban Health 21,650.23 13,736.25 22,051.56 (-) 13,334.92
Care Project
Establishment of
Government Medical
21. 19 4210.03.105.UF College with existing 43,198.93 18,706.93 54,059.95 (-) 7,845.91
District / Referral
Hospital. - State Share
Tamil Nadu Health
22. 19 4210.01.200.PC 0.01 2,897.87 1,463.58 (-) 1,434.30
Systems Reforms Project
Construction of over and
23. 21 5054.80.800.JJ under bridges in lieu of 14,963.29 6,616.48 18,932.49 (-) 2,647.28
Existing level crossings
Construction of a New
Museum to Display
Unearthed Antiques found
in Excavation work at
24. 29 4202.04.106.KE Archaeological Site 0.00 1,800.00 41.46 (-) 1,758.54
station of Archaeological
Sites under State
Infrastructure and
Amenities Fund
Buildings - Art and
Culture - (Administered
25. 29 4202.04.101.JE 783.91 1,526.01 1,177.30 (-) 1,132.62
by Chief Engineer
(Buildings))
Construction of a New
Museum to Display
26. 29 4202.04.106.KC Unearthed Antiques found 500.00 1,551.80 1,050.34 (-) 1,001.46
in Excavation work at
Archaeological Sites
27. 39 4220.60.101.AC Buildings 456.90 5,456.70 4,878.39 (-) 1,035.21
28. 40 4700.01.800.DA Weir 748.55 2,944.69 2,059.04 (-) 1,634.20
Barrage - NABARD
29. 40 4700.03.800.FB 200.00 4,750.00 3,944.14 (-) 1,005.86
assistance
SIDBI Funded Cluster
30. 44 6851.00.102.AH 0.01 12,801.99 8,088.66 (-) 4,713.34
Development Programme

Total 13,34,788.24 8,04,828.71 20,39,710.36 (-) 99,906.59

154
 Appendices

Appendix 3.3
(Reference: Paragraph 3.5.1.4)
Cases where Supplementary provision (₹ 50 lakh or more in each scheme) is inadequate
(₹ in crore)
Grant Original Supplementary Actual
Sl No. Head of Account
No Provision provision Expenditure
(A) Revenue (Voted)
1. 03 2014.00.101.AA 29.99 4.39 36.51
2. 03 2014.00.101.AC 35.59 1.31 38.36
3. 03 2014.00.101.AE 39.74 5.63 47.86
4. 03 2014.00.101.AC 10.11 1.68 12.02
5. 03 2014.00.801.AL 7.61 0.77 8.43
6. 05 2401.00.101.BB 3.30 1.30 7.33
7. 05 2401.00.801.AV 5,157.57 2,344.68 7,857.76
8. 06 2403.00.101.AA 499.34 17.65 541.98
9. 06 2403.00.101.KR 6.60 4.63 11.97
10. 06 2403.00.101.AA 3.58 0.69 4.41
11. 07 2405.00.101.UH 0.00 5.84 25.50
12. 11 2030.03.001.AD 52.06 16.33 68.57
13. 11 2030.02.101.AA 37.96 12.08 59.13
14. 13 2070.00.801.BJ 2.74 1.02 4.05
15. 14 2801.80.101.AH 3,620.02 738.91 5,246.84
16. 16 2075.00.791.AE 330.00 590.75 970.18
17. 17 2851.00.101.AB 7.70 2.85 10.89
18. 17 2851.00.101.AA 0.00 2.00 6.00
19. 18 2851.00.101.AJ 75.00 20.21 95.64
20. 18 2851.00.101.JP 0.00 1.15 1.30
21. 18 2851.00.791.JA 2.00 0.60 2.86
22. 19 2210.05.101.KE 65.21 24.23 198.26
23. 19 2210.01.111.CQ 280.16 20.08 306.43
24. 19 2210.01.111.PD 5.28 1.22 19.24
25. 19 2210.01.111.PE 70.71 5.24 76.73
26. 19 2210.06.791.UA 0.00 14.68 29.36
27. 19 2210.06.791.UB 0.00 9.79 19.57
28. 19 2210.06.791.UA 0.00 0.80 1.60
29. 19 2210.06.791.UB 0.00 0.53 1.07
30. 19 2210.06.801.UB 0.00 57.86 115.72
31. 19 2210.06.801.UC 0.00 38.57 77.15
32. 20 2202.03.101.AB 428.04 105.50 542.99
33. 20 2202.03.101.AE 21.45 20.47 42.18
34. 21 3054.01.001.AC 37.08 3.98 41.61
35. 21 3054.80.001.AE 134.86 24.87 160.53
(A) Revenue (Voted)
36. 21 3054.80.001.AA 31.64 0.90 38.65
37. 22 2055.00.801.AE 0.50 19.02 37.35
38. 24 2056.00.101.SB 0.00 3.00 3.08
39. 28 2220.01.101.AE 0.27 0.54 1.83
40. 28 2220.60.101.AI 31.80 9.72 43.24
41. 29 2205.00.101.AO 14.03 0.84 15.38

155
State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in crore)
Grant Original Supplementary Actual
Sl No. Head of Account
No Provision provision Expenditure
42. 32 2230.02.001.AA 5.62 1.28 8.23
43. 32 2230.02.101.AA 34.21 2.32 37.94
44. 34 3604.00.191.AN 0.00 404.17 767.37
45. 35 2062.00.101.AA 78.21 1.52 80.74
46. 36 2052.00.091.BA 4.99 1.75 6.92
47. 36 3454.02.111.AE 32.25 2.48 34.99
48. 38 2070.00.111.AB 23.11 20.05 48.64
49. 39 2216.05.051.AD 9.08 13.53 23.64
50. 40 2701.80.001.PA 0.00 0.94 3.52
51. 42 2202.01.101.AE 0.00 357.60 800.00
52. 43 2202.02.101.KT 125.00 14.95 210.04
53. 43 2202.02.101.KV 0.00 10.30 21.50
54. 45 2236.02.101.UU 0.00 21.52 38.41
55. 47 2250.00.101.AY 0.00 1.82 3.25
56. 48 2235.02.191.AC 1,520.00 1,183.99 2,728.79
57. 49 2204.00.101.AF 54.15 1.28 55.99
58. 49 2204.00.101.AN 28.77 1.05 31.18
59. 49 2204.00.101.AR 7.48 34.79 42.34
60. 51 2245.02.101.AE 0.00 0.55 0.80
61. 51 2245.02.101.AF 0.00 4.52 4.75
62. 51 2245.02.111.AB 0.00 9.66 10.09
63. 51 2245.02.111.AB 0.00 3.99 4.14
64. 51 2245.80.801.AH 0.00 55.69 62.50
65. 51 2245.02.801.BI 0.00 2.79 2.93
66. 52 2235.02.101.CO 23.73 6.18 30.00
67. 54 2406.01.001.AE 2.41 0.75 3.17
68. 54 2406.01.101.AS 0.00 5.56 7.03
(A) Revenue (Charged)
69. 22 2235.60.201.CI 3.42 2.62 6.55
70. 56 2049.04.101.CB 0.00 2.05 2.67
71. 56 2049.04.101.CC 0.00 2.10 2.71
(B) Capital (Voted)
72. 06 4403.00.101.JA 9.00 8.95 38.43
73. 07 4405.00.101.JE 300.00 6.94 334.64
74. 09 4225.03.271.KE 14.43 13.72 29.11
75. 09 4225.03.271.UB 0.00 5.85 7.41
76. 09 4225.03.271.UC 0.77 5.26 6.17
77. 19 4210.03.101.UE 9.80 6.33 17.42

156
 Appendices

(₹ in crore)
Grant Original Supplementary Actual
Sl No. Head of Account
No Provision provision Expenditure
78. 21 5054.03.331.JK 126.76 227.16 864.42
79. 39 4059.60.051.UB 21.14 35.00 174.75
80. 39 4059.60.051.UC 18.43 26.00 113.00
81. 39 4210.01.111.JA 132.52 98.52 238.35
82. 40 4700.05.801.AA 9.97 1.00 27.77
83. 40 4700.01.801.BB 1.14 10.00 51.06
84. 40 4701.01.801.CA 82.07 0.97 138.52
85. 40 4700.04.801.DB 2.26 2.52 16.32
86. 40 4701.01.801.EA 0.00 4.69 4.76
87. 48 5055.00.191.KE 0.00 759.61 1,031.31
88. 54 4406.01.101.PI 0.00 76.33 99.12
89. 54 4406.02.111.JI 0.00 2.48 4.56
(C) Loan (Voted)
90. 17 6860.01.101.AH 1.00 1.50 2.90
91. 26 7610.00.201.BS 140.00 44.22 188.35
92. 34 6217.60.191.PN 0.00 66.60 100.00
Total 13,863.66 7,711.76 25,398.76

157
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 3.4
(Reference: Paragraph 3.5.1.5)
Excessive/Insufficient re-appropriation of funds
(₹ in crore)
Provisions
Savings(-)
Sl Grant Grant Actual
Head of Account Suppleme Re- FMA / Excess
No No. Description Original Expenditure
ntary appropriation (O+S+R) (+)

Savings occurred under the following

Administration of
1 03 2014.00.102.AA 227.91 50.35 (-) 7.34 270.92 268.12 (-) 2.79
Justice

Adi Dravidiar
and Tribal
2 04 2225.01.277.AA 598.97 0.00 (-) 53.24 545.73 543.56 (-) 2.17
Welfare
Department

Health and
3 19 Family Welfare 2210.01.110.AB 581.00 0.13 (-) 14.26 566.87 563.46 (-) 3.41
Department

Health and
4 19 Family Welfare 2210.01.110.CM 66.13 0.00 (-) 9.03 57.11 54.96 (-) 2.15
Department

Health and
5 19 Family Welfare 2210.03.103.BI 981.40 0.00 (-) 114.77 866.63 864.48 (-) 2.15
Department

Health and
6 19 Family Welfare 2210.05.105.AL 596.73 2.65 (-) 27.86 571.52 569.03 (-) 2.48
Department

Health and
7 19 Family Welfare 2235.60.200.KG 579.62 0.00 (-) 85.76 493.86 490.24 (-) 3.62
Department

Higher Education
8 20 2203.00.108.AA 50.74 0.00 (-) 4.23 46.51 42.90 (-) 3.60
Department

Highways and
9 21 Minor Ports 5054.80.800.JE 319.44 0.00 37.40 356.84 285.64 (-) 71.20
Department

Police (Home,
Prohibition and
10 22 2055.00.104.AA 757.13 0.00 (-) 85.38 671.75 667.52 (-) 4.23
Excise
Department)
Police (Home,
Prohibition and
11 22 2055.00.108.AB 1,405.83 0.25 (-) 266.57 1,139.51 1,136.63 (-) 2.88
Excise
Department)
Police (Home,
Prohibition and
12 22 2055.00.109.AA 4,527.16 0.75 (-) 270.14 4,257.78 4,243.16 (-) 14.61
Excise
Department)
Police (Home,
Prohibition and
13 22 2055.00.109.AL 897.96 0.00 351.84 1249.80 1247.72 (-) 2.08
Excise
Department)
Police (Home,
Prohibition and
14 22 2055.00.797.AA 14.38 0.00 4.05 18.42 13.74 (-) 4.69
Excise
Department)

158
 Appendices

(₹ in crore)
Provisions Savings(-)
Sl Actual
Grant Description Head of Account Supple- Re- FMA / Excess
No Original Expenditure
mentary appropriation (O+S+R) (+)
Municipal
Administration
15 34 3604.00.191.AA 1,756.00 0.00 (-) 627.14 1,128.86 1,123.86 (-) 5.00
and Water Supply
Department
Municipal
Administration
16 34 3604.00.191.AN 0.00 404.17 365.20 769.37 767.37 (-) 2.00
and Water Supply
Department
Buildings (Public
17 39 Works 4210.01.051.SA 0.00 4.79 (-) 0.02 4.77 0.16 (-) 4.61
Department)
Buildings (Public
18 39 Works 4215.01.800.JW 9.32 0.00 2.05 11.37 0.54 (-) 10.83
Department)
Buildings (Public
19 39 Works 4216.80.800.JU 11.05 0.00 2.43 13.48 6.14 (-) 7.34
Department)
Water Resources
20 40 2701.80.001.AF 300.74 0.00 (-) 11.78 288.96 285.22 (-) 3.74
Department
Water Resources
21 40 2701.80.052.AC 2.33 0.00 0.20 2.53 0.00 (-) 2.53
Department
Water Resources
22 40 2701.80.800.AA 1,436.97 0.00 (-) 116.68 1.320.29 0.00 (-) 1,320.29
Department
Water Resources
23 40 2701.80.800.AC 161.86 0.00 (-) 31.23 130.63 0.00 (-) 130.63
Department
Water Resources
24 40 2711.01.800.AC 190.84 0.00 (-) 11.87 178.97 0.00 (-) 178.97
Department
Water Resources
25 40 4700.80.800.PW 203.07 0.00 (-) 32.64 170.43 124.69 (-) 45.74
Department
Water Resources
26 40 4702.00.800.JW 11.59 0.00 5.37 16.97 6.57 (-) 10.40
Department
Water Resources
27 40 4711.01.800.JD 3.87 0.00 27.67 31.55 28.03 (-) 3.52
Department
Revenue and
Disaster
28 41 2235.60.102.JB 346.87 82.59 (-) 17.27 412.19 405.14 (-) 7.05
Management
Department
Revenue and
Disaster
29 41 2235.60.102.JE 542.20 36.26 (-) 21.38 557.07 547.42 (-) 9.65
Management
Department
Revenue and
Disaster
30 41 2235.60.102.UA 630.68 0.00 (-) 126.36 504.31 502.29 (-) 2.02
Management
Department
Revenue and
Disaster
31 41 Management 2235.60.102.UD 905.68 0.00 (-) 10.53 895.15 871.34 (-) 23.81
Department
Revenue and
Disaster
32 41 Management 2235.60.102.UF 400.79 0.00 (-) 63.07 337.72 330.95 (-) 6.78
Department
Revenue and
Disaster
33 41 Management 2235.60.200.KX 345.86 0.00 (-) 79.63 266.24 259.96 (-) 6.28
Department

159
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in crore)
Provisions Savings(-)
Sl Actual
Grant Description Head of Account Suppleme Re- FMA / Excess
No Original Expenditure
ntary appropriation (O+S+R) (+)
Revenue and
Disaster
34 41 2235.60.789.JF 90.31 0.00 18.02 108.33 106.24 (-) 2.09
Management
Department
Revenue and
Disaster
35 41 2235.60.789.JT 155.24 0.00 8.71 163.95 161.02 (-) 2.93
Management
Department
Revenue and
Disaster
36 41 2235.60.793.UE 293.84 0.00 (-) 7.15 286.68 276.87 (-) 9.82
Management
Department
Revenue and
Disaster
37 41 2235.60.793.UG 127.20 0.00 (-) 18.07 109.13 106.86 (-) 2.27
Management
Department
School Education
38 43 2202.01.101.AC 7,952.76 0.00 (-) 400.21 7,552.56 7,548.36 (-) 4.19
Department
School Education
39 43 2202.02.101.AB 0.00 0.00 9.19 9.19 0.62 (-) 8.57
Department
School Education
40 43 2202.02.109.AA 8,891.80 0.00 (-) 70.83 8,820.97 8,815.23 (-) 5.74
Department
School Education
41 43 2202.02.110.AA 3,169.28 0.00 609.33 3,778.61 3,772.88 (-) 5.73
Department
Social Welfare
and Women
42 45 2236.02.101.JN 1,087.04 0.00 (-) 86.02 1,001.01 998.58 (-) 2.43
Empowerment
Department
Social Welfare
and Women
43 45 2236.02.101.SF 531.00 0.00 (-) 83.81 447.19 444.79 (-) 2.40
Empowerment
Department
Social Welfare
and Women
44 45 2236.02.102.KL 781.73 0.00 (-) 106.50 675.23 655.34 (-) 19.89
Empowerment
Department
Social Welfare
and Women
45 45 2236.02.102.KN 299.67 0.00 (-) 11.59 288.08 266.70 (-) 21.38
Empowerment
Department
Social Welfare
and Women
46 45 2236.02.789.JN 22.55 0.00 (-) 14.14 8.40 4.99 (-) 3.42
Empowerment
Department
Social Welfare
and Women
47 45 2236.02.789.JO 34.81 0.00 (-) 11.06 23.75 12.41 (-) 11.34
Empowerment
Department
Hindu Religious
and Charitable
Endowments
(Tamil
48 47 Development, 2250.00.102.AC 0.00 0.00 2.01 2.01 0.00 (-) 2.01
Religious
Endowments and
Information
Department)

Relief on account
49 51 of Natural 2245.02.800.BI 0.00 2.79 2.97 5.76 2.93 (-) 2.83
Calamities

160
 Appendices

(₹ in crore)
Provisions Savings(-)
Sl Actual
Grant Description Head of Account Suppleme Re- FMA / Excess
No Original Expenditure
ntary appropriation (O+S+R) (+)
Debt Charges
50 56 (Charged 2049.03.104.AM 55.91 0.00 1.74 57.65 53.20 (-) 4.45
Appropriation)

Total 42,357.27 584.73 (-) 1,449.37 41,492.63 39,477.89 (-) 2,014.74

Excess occurred under the following
Agriculture and
1 05 Farmers Welfare 2401.00.109.AK 286.40 0.00 9.35 295.74 299.80 4.05
Department
Agriculture and
2 05 Farmers Welfare 2408.01.103.UA 0.00 0.00 0.00 0.00 2.46 2.46
Department
Highways and
3 21 Minor Ports 5054.80.800.JF 20.71 0.00 (-) 1.74 18.97 29.96 10.99
Department
Police (Home,
Prohibition and
4 22 2055.00.800.AL 8.58 0.00 6.63 15.21 21.97 6.76
Excise
Department)
Municipal
Administration
5 34 2217.05.191.AJ 0.00 0.00 0.00 0.00 56.00 56.00
and Water Supply
Department
Municipal
Administration
6 34 3604.00.192.SD 160.95 0.00 (-) 160.95 0.00 80.48 80.48
and Water Supply
Department
Buildings (Public
7 39 Works 4059.01.800.AA 19.74 0.00 4.35 24.09 61.76 37.67
Department)
Buildings (Public
8 39 Works 4202.04.800.JW 24.39 0.00 5.38 29.77 43.52 13.75
Department)
Buildings (Public
9 39 Works 4210.80.800.JA 31.75 0.00 7.00 38.75 81.67 42.92
Department)
Buildings (Public
10 39 Works 4210.80.800.UW 0.18 0.00 0.04 0.21 28.15 27.93
Department)
Buildings (Public
11 39 Works 4220.60.800.AA 1.69 0.00 0.37 2.07 5.70 3.64
Department)
Buildings (Public
12 39 Works 4225.03.800.JA 3.36 0.00 0.74 4.10 6.76 2.66
Department)
Buildings (Public
13 39 Works 4403.00.800.JA 9.43 0.00 2.08 11.51 15.13 3.62
Department)
Water Resources
14 40 4701.80.800.JJ 18.81 0.00 (-) 0.70 18.11 21.40 3.29
Department
Water Resources
15 40 4702.00.101.UZ 0.00 0.00 10.61 10.62 16.28 5.66
Department
Revenue and
Disaster
16 41 2235.60.793.UC 80.51 0.00 (-) 23.15 57.36 59.62 2.26
Management
Department
Social Welfare
and Women
17 45 2236.02.101.UK 257.11 0.00 24.56 281.67 296.85 15.18
Empowerment
Department

161
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in crore)
Provisions Savings(-)
Sl Gra Actual
Description Head of Account Suppleme Re- FMA / Excess
No nt Original Expenditure
ntary appropriation (O+S+R) (+)
Social Welfare
and Women
18 45 2236.02.102.UM 0.00 0.00 10.11 10.11 18.69 8.58
Empowerment
Department
Social Welfare
and Women
19 45 2236.02.102.UN 0.00 0.00 6.83 6.83 12.59 5.76
Empowerment
Department
Social Welfare
and Women
20 45 2236.02.789.UH 0.00 0.00 5.40 5.40 7.46 2.05
Empowerment
Department
Social Welfare
and Women
21 45 2236.02.789.UJ 0.00 0.00 3.68 3.68 10.46 6.78
Empowerment
Department
Social Welfare
and Women
22 45 2236.02.789.UK 0.00 0.00 2.28 2.28 6.84 4.56
Empowerment
Department
Debt Charges
23 56 (Charged 2049.01.101.LA 30,547.29 0.00 4,076.06 34,623.35 34,630.35 7.00
Appropriation)
Debt Charges
24 56 (Charged 2049.01.305.AG 0.00 0.00 822.17 822.17 882.08 59.91
Appropriation)
Debt Charges
25 56 (Charged 2049.03.104.AJ 32.10 0.00 (-) 14.08 18.02 31.10 13.08
Appropriation)
Total 31,503.01 0.00 4,797.03 36,300.04 36,727.08 427.04

162
 Appendices

Appendix 3.5
(Reference: Paragraph 3.5.1.5)
Injudicious re-appropriations-Unnecessary provision by re-appropriation
(₹ in lakh)
Sl Supple- Re- Final Modified
Grant Head of Account Original Expenditure
No mentary appropriation Appropriation

(A) Revenue (Voted)

1 05 2401.00.119.AG 2,672.78 0.00 85.35 2,758.13 2,572.28

2 05 2435.01.102.AA 438.33 0.00 1.23 439.56 436.25

3 19 2210.02.001.JB 20.73 0.00 0.17 20.90 20.64

4 22 2055.00.797.AA 1,437.70 0.01 404.76 1,842.47 1,373.50

5 36 2551.01.137.JA 250.03 0.00 4.34 254.37 245.02

6 38 2070.00.115.AC 205.81 0.01 0.10 205.92 203.68

7 39 4215.01.800.JW 931.66 0.01 205.33 1,137.00 54.36

8 40 2701.03.101.AY 4.76 0.01 39.93 44.70 0.00

9 40 2702.02.001.AA 417.71 0.00 45.20 462.91 415.12

10 45 2236.02.102.KP 3,248.43 0.00 23.22 3,271.65 3,202.47

11 46 2202.05.102.AK 62.32 0.01 3.75 66.08 61.88

12 51 2245.02.101.AB 0.08 286.38 0.34 286.80 286.35

13 54 2415.06.004.AA 30.01 213.00 0.39 243.4 242.06

(A) Revenue (Charged)
14 56 2049.03.104.AM 5,590.80 0.01 174.28 5,765.09 5,320.04

15 56 2049.03.111.AF 143.00 0.00 0.72 143.72 117.01

16 56 2049.04.101.CD 0.00 117.17 117.13 234.30 117.14

17 56 2049.60.101.AB 1.45 0.00 0.01 1.46 1.39

Total 15,455.60 616.61 1,106.25 17,178.46 14,669.19

163
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 3.6
(Reference: Paragraph 3.5.1.5)
Provision more than ₹ 100 crore withdrawn by re-appropriation and with ‘NIL’
Expenditure
(₹ in crore)
Sl Grant Head of Supple- Re- Actual
Description Original
No No Account mentary appropriation Expenditure
A-Revenue(-) Voted
1 04 2225.01.277.KM Educational Concessions 878.59 0.00 (-) 878.59 0.00
2 04 2225.01.277.SA Educational Concessions 930.81 0.00 (-) 930.81 0.00
Solar Energy Produced by
3 14 2810.00.800.AB Farmers' under KUSUM 100.00 0.00 (-) 100.00 0.00
Scheme
Providing basic amenities
for resettlement and re-
4 26 2216.02.190.JU habilitation of flood affected 200.00 0.00 (-) 200.00 0.00
slum dwellers on the river
margins
5 27 2851.00.102.DG Export Promotion Fund 100.00 0.00 (-) 100.00 0.00
Grants to Tamil Nadu Skill
6 32 2230.03.800.JB 117.00 0.00 (-) 117.00 0.00
Development Corporation
Implementation of Swacch
Bharat Mission in
7 34 2217.05.191.UG 168.00 0.00 (-) 168.00 0.00
Corporations /
Municipalities - State Share
Implementation of Swacch
Bharat Mission in
8 34 2217.05.800.UB 210.00 0.00 (-) 210.00 0.00
Corporations /
Municipalities
Implementation of Swacch
9 34 2217.05.800.UE Bharat Mission in Town 100.80 0.00 (-) 100.80 0.00
Panchayats
Contribution to the
Operational and
10 34 3604.00.191.AC 109.75 0.00 (-) 109.75 0.00
Maintenance Gap filling
fund
11 34 3604.00.191.AE Capital Grant Fund 329.25 0.00 (-) 329.25 0.00
Solid Waste Management
and Sanitation Grants to
Million Plus Cities as per the
12 34 3604.00.191.SF 313.00 0.00 (-) 313.00 0.00
recommendation of 15th
Finance Commission -
Municipal Corporations.
13 34 3604.00.192.AH Capital Grant Fund 238.71 0.00 (-) 238.71 0.00
Capital Grant Fund for Rural
14 42 3604.00.200.BP 1,451.68 0.00 (-) 1,451.68 0.00
Local Bodies
Pooled Fund Deficit - Rural
15 42 3604.00.200.BQ 725.84 0.00 (-) 725.84 0.00
Local Bodies
A-Revenue-Charged
Lumpsum provision for the
16 56 2049.01.101.AC New Loans to be floated 1,575.00 0.00 (-) 1,575.00 0.00
during next Financial Year
B-Capital-Voted
Share Capital -Assistance to
TANTRANSCO for
17 14 4801.05.190.AA Chennai-Kanyakumari 475.00 0.00 (-) 475.00 0.00
Industrial Corridor(CKIC)
Project
Transfer to Tamil Nadu
18 16 4070.00.800.KF Infrastructure Development 500.00 0.00 (-) 500.00 0.00
Fund
First Loss Catalytic Capital
for Investments into Tamil
19 16 5475.00.115.PA 138.30 0.00 (-) 138.30 0.00
Nadu Infrastructure Fund
under TNIPP Phase-2

164
 Appendices

(₹ in crore)
Sl Grant Head of Supple- Re- Actual
Description Original
No No Account mentary appropriation Expenditure
Development of Northern
20 21 5054.80.800.KN 248.50 0.00 (-) 248.50 0.00
Port Access Road Project
Implementation of Smart
21 34 4217.03.800.UA 935.00 0.00 (-) 935.00 0.00
Cities Programme
Atal Mission for
22 34 4217.60.800.UA Rejuvenation and Urban 870.00 0.00 (-) 870.00 0.00
Transformation (AMRUT)
Jal Jeevan Mission
23 42 4215.01.102.UB (Erstwhile National Rural 1,152.00 0.00 (-) 1,152.00 0.00
Drinking Water Programme)
Jal Jeevan Mission
24 42 4215.01.793.UB (Erstwhile National Rural 594.00 0.00 (-) 594.00 0.00
Drinking Water Programme)
Total 12,461.23 0.00 (-) 12,461.23 0.00
(Source: Detailed Appropriation Accounts for the year 2022-23)

165
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 3.7
(Reference: Paragraphs 3.5.1.5 and 4.2)
Withdrawal of entire Provision towards interest liability under Major Head ‘8342’
(in ₹)
Sl Head of Final
Suppleme
Nomenclature Original Re-appropriation Modified Expenditure
No Account ntary Appropriation
Interest on Deposits
1 2049.60.101.BG of State Agricultural 30,00,000 0.00 (-) 30,00,000 0.00 0.00
Marketing Board
Interest on Deposits
2 2049.60.101.BK of Dharmapuri 7,00,000 0.00 (-) 7,00,000 0.00 0.00
Market Committee
Interest on Deposits
3 2049.60.101.BL of Kanyakumari 50,00,000 0.00 (-) 50,00,000 0.00 0.00
Market Committee
Interest on Deposits
4 2049.60.101.BM of Salem Market 32,35,000 0.00 (-) 32,35,000 0.00 0.00
Committee
Interest on Deposits
5 2049.60.101.DB of Anna University, 8,28,46,000 0.00 (-) 8,28,46,000 0.00 0.00
Chennai
Interest on Deposits
of Tamil Nadu
6 2049.60.101.DC 15,12,88,000 0.00 (-) 15,12,88,000 0.00 0.00
Agricultural
University
Deposits of State
Transport
Corporation
7 2049.60.101.DU 1,20,40,000 0.00 (-) 1,20,40,000 0.00 0.00
Employees' Post
Retirement Benefit
Fund
Interest on Deposits
8 2049.60.101.EP of Thiruvalluvar 8,00,000 0.00 (-) 8,00,000 0.00 0.00
University
Interest on Deposits
of Tamil Nadu State
Transport
9 2049.60.101.EY 3,20,00,000 0.00 (-) 3,20,00,000 0.00 0.00
Corporation
Employees Pension
Fund Trust
Total 29,09,09,000 0.00 -29,09,09,000 0.00 0.00
(Source: Detailed Appropriation Accounts for the year 2022-23)

166
 Appendices

Appendix 3.8
(Reference: Paragraph 3.5.1.5)
Expenditure incurred without Final Modified Appropriation
(in ₹)
Sl Grant No. & Head of Account & Suppleme Re-
Original FMA Expenditure
No Department Description ntary appropriation
Revenue (Voted)
2225.02.277.SA (V)
04- Adi Dravidiar
Government of India
1 and Tribal Welfare 34,83,12,000 0 (-) 34,83,12,000 0 50,630
Post-Matric
Department
Scholarships
2401.00.108.UD (V)
05- Agriculture and Production and
2 Farmers Welfare Distribution of dwarf 1,68,00,000 0 (-) 1,68,00,000 0 1,43,99,150
Department and tall hybrid
coconut seedlings
2408.01.103.AD (V)
Implementation of
05- Agriculture and Scheme of Pradhan
3 Farmers Welfare Mantri Formalization 0 1,000 (-) 1,000 0 52,83,392
Department of Micro Food
Processing
Enterprises
2408.01.103.UA (V)
Implementation of
05- Agriculture and Scheme of Pradhan
4 Farmers Welfare Mantri Formalization 0 2,000 (-) 2,000 0 2,45,75,828
Department of Micro Food
Processing
Enterprises
2408.01.793.AA (V)
Implementation of
05- Agriculture and Scheme of Pradhan
5 Farmers Welfare Mantri Formalization 0 1,000 (-) 1,000 0 1,13,932
Department of Micro Food
Processing
Enterprises
2408.01.793.UA (V)
Implementation of
05- Agriculture and Scheme of Pradhan
6 Farmers Welfare Mantri Formalization 0 2,000 (-) 2,000 0 45,17,806
Department of Micro Food
Processing
Enterprises
2408.01.794.AA (V)
Implementation of
05- Agriculture and Scheme of Pradhan
7 Farmers Welfare Mantri Formalization 0 1,000 (-) 1,000 0 48,790
Department of Micro Food
Processing
Enterprises
2408.01.794.UA (V)
Implementation of
05- Agriculture and Scheme of Pradhan
8 Farmers Welfare Mantri Formalization 0 2,000 (-) 2,000 0 6,69,866
Department of Micro Food
Processing
Enterprises

167
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

(in ₹)
Sl Grant No. & Head of Account & Suppleme Re-
Original FMA Expenditure
No Department Description ntary appropriation
2217.05.191.AJ (V)
34- MUNICIPAL Grants to 28 newly
ADMINISTRATIO upgraded
9 N AND WATER Municipalities for 0 1,000 (-) 1,000 0 56,00,00,000
SUPPLY creation of basic
DEPARTMENT Infrastructure
facilities
2217.05.800.AB (V)
34- MUNICIPAL
Secretariat Staff
ADMINISTRATIO
Administration and
10 N AND WATER 15,10,000 0 (-)15,10,000 0 14,34,952
Operational expenses
SUPPLY
for National Urban
DEPARTMENT
Livelihood Mission
3604.00.192.SD (V)
Tied Grants to Non-
Million Cities for
34- MUNICIPAL
Drinking Water and
ADMINISTRATIO
Solid Waste
11 N AND WATER 1,60,95,00,000 0 (-) 1,60,95,00,000 0 80,47,50,000
Management as per
SUPPLY
the recommendation
DEPARTMENT
of 15th Finance
Commission -
Municipalities
Capital (Voted)
34- MUNICIPAL 4217.03.051.UA (V)
ADMINISTRATIO Implementation of
12 N AND WATER Smart Cities 9,40,00,00,000 0 (-) 9,40,00,00,000 0 1,000
SUPPLY Programme - State
DEPARTMENT Share
4217.60.051.UA (V)
34- MUNICIPAL Atal Mission for
ADMINISTRATIO Rejuvenation and
13 N AND WATER Urban 5,80,00,00,000 0 (-) 5,80,00,00,000 0 1,000
SUPPLY Transformation
DEPARTMENT (AMRUT) - State
Share
Loan (Voted)
7610.00.201.AY (V)
Loans to Secretariat
34- MUNICIPAL
Employees for
ADMINISTRATIO
construction of
14 N AND WATER 80,00,000 0 (-) 80,00,000 0 39,13,750
houses - Municipal
SUPPLY
Administration and
DEPARTMENT
Water Supply
Department
Total 1,41,97,63,503

168
 Appendices

Appendix 3.9
(Reference: Paragraph 3.5.1.5)
Injudicious re-appropriations – Provisions made in first re-appropriation and
withdrawn in second re-appropriation where expenditure is ‘Nil’
(in ₹)

Sl Grant Provision Re-appropriation Re-appropriation

Head of Account
No No (O+S) I II
Revenue (Charged)
1 56 2049.05.105.AF 2,92,000 3,000 (-) 2,95,000
2 19 2210.01.110.AJ 0 2,00,000 (-) 2,00,000
Revenue (Voted)
3 09 2225.04.001.AD 1,000 2,75,59,000 (-) 2,75,60,000
4 34 2217.05.052.AA 1,000 16,11,29,000 (-)16,11,30,000
5 45 2251.00.090.BJ 2,000 8,57,000 (-) 8,59,000
6 34 2251.00.090.BR 1,000 74,99,000 (-) 75,00,000
7 14 2052.00.090.CS 1,000 56,000 (-) 57,000
8 41 2053.00.094.GB 6,000 10,91,88,000 (-) 10,91,94,000
9 32 2230.03.101.JT 4,20,01,000 5,59,89,000 (-) 9,79,90,000
10 32 2230.03.101.JX 35,64,000 16,01,000 (-) 51,65,000
11 07 2405.00.101.UG 2,000 1,71,04,000 (-) 1,71,06,000
12 06 2403.00.101.UH 18,000 1,46,000 (-) 1,64,000
13 32 2230.03.101.UK 1,000 74,99,000 (-) 75,00,000
14 11 2030.02.102.AA 38,93,000 1,75,000 (-) 40,68,000
15 45 2236.02.102.UY 2,000 15,42,01,000 (-) 15,42,03,000
16 45 2236.02.102.UZ 2,000 10,28,00,000 (-) 10,28,02,000
17 05 2408.01.103.AC 5,00,01,000 2,99,000 (-) 5,03,00,000
18 40 2711.01.103.AY 0 33,000 (-) 33,000
19 17 2851.00.103.KN 2,000 92,69,000 (-) 92,71,000
20 45 2235.02.103.UD 52,06,000 24,58,000 (-) 76,64,000
21 45 2235.02.103.UG 26,04,000 12,28,000 (-) 38,32,000
22 50 2071.01.104.AG 2,000 29,49,98,000 (-) 29,50,00,000
23 54 2406.01.105.AK 6,000 7,72,000 (-) 7,78,000
24 05 2401.00.108.VL 91,17,000 14,33,000 (-) 1,05,50,000
25 05 2401.00.108.VQ 2,12,95,000 57,34,000 (-) 2,70,29,000
26 05 2401.00.108.VR 60,78,000 9,55,000 (-) 70,33,000
27 54 2406.02.110.JQ 9,93,000 7,000 (-) 10,00,000
28 22 2055.00.115.UC 1,000 64,26,000 (-) 64,27,000
29 22 2055.00.115.UD 1,000 42,84,000 (-) 42,85,000
30 50 2071.01.117.AG 1,000 19,99,000 (-) 20,00,000
31 05 2415.01.120.JQ 2,000 4,49,98,000 (-) 4,50,00,000

169
State Finances Audit Report, Tamil Nadu for the year ended March 2023

(in ₹)

Sl Grant Provision Re-appropriation Re-appropriation

Head of Account
No No (O+S) I II
32 38 2235.01.140.BB 7,96,000 5,89,39,000 (-) 5,97,35,000
33 26 2216.02.190.UJ 1,000 1,91,99,99,000 (-) 1,92,00,00,000
34 32 2230.03.789.JD 93,49,000 1,24,25,000 (-) 2,17,74,000
35 07 2405.00.789.UE 2,000 1,00,33,000 (-) 1,00,35,000
36 26 2216.02.793.UC 1,000 1,04,99,99,000 (-) 1,05,00,00,000
37 26 2216.02.793.UD 1,000 41,99,99,000 (-) 42,00,00,000
38 05 2401.00.793.UK 75,81,000 26,91,000 (-) 1,02,72,000
39 05 2401.00.793.UV 21,25,000 4,72,000 (-) 25,97,000
40 05 2401.00.793.VD 50,54,000 17,94,000 (-) 68,48,000
41 05 2401.00.793.VM 14,16,000 3,26,000 (-) 17,42,000
42 04 2225.02.794.SE 1,33,21,000 3,29,79,000 (-) 4,63,00,000
43 05 2501.05.794.UA 1,000 75,26,000 (-)75,27,000
44 05 2501.05.794.UB 1,000 50,17,000 (-) 50,18,000
45 26 2216.02.794.UC 1,000 2,99,99,000 (-) 3,00,00,000
46 26 2216.02.794.UD 1,000 1,19,99,000 (-) 1,20,00,000
47 05 2401.00.794.UQ 89,000 43,000 (-) 1,32,000
48 05 2401.00.794.VH 59,000 32,000 (-) 91,000
49 32 2230.03.796.JD 4,88,000 7,21,000 (-)12,09,000
50 12 2425.00.800.AL 14,000 15,39,000 (-)15,53,000
51 43 2202.02.800.JX 6,01,000 44,22,000 (-) 50,23,000
52 47 2250.00.102.AC 0 2,00,59,000 (-) 3,000
Capital (Voted)
53 39 4059.60.051.JI 1,000 49,99,000 (-) 50,00,000
54 27 5053.02.102.AJ 2,000 10,65,70,000 (-) 10,65,72,000
55 27 5053.02.102.AO 2,000 25,89,000 (-) 25,91,000
56 07 4405.00.104.UA 2,000 14,99,000 (-) 15,01,000
57 45 4235.02.106.AB 1,000 4,99,99,000 (-) 5,00,00,000
58 29 4202.04.106.SA 1,000 16,14,000 (-) 16,15,000
59 39 4210.03.200.JX 0 4,98,000 (-) 4,98,000
60 20 4202.01.203.JG 2,000 5,19,99,000 (-) 5,20,01,000
61 16 4070.00.800.KS 2,35,00,000 8,32,000 (-) 2,43,32,000
62 40 4702.00.800.PC 2,000 43,16,000 (-) 43,18,000
Loan (Voted)

63 16 7610.00.202.AA 0 7,50,000 (-) 22,000

Total 20,95,11,000 4,83,75,77,000 (-) 5,02,63,04,000

170
 Appendices

Appendix 3.10
(Reference: Paragraph 3.5.1.7 (a))
Grants in which savings more than ₹ 100 crore
(₹ in crore)
Sl Grant Supple- Actual
Name of the Grant Original Total Savings
No No mentary Expenditure
A-Revenue (Charged)
Debt Charges (Charged
1 56 50,611.92 30.42 50,642.34 47,547.21 (-) 3,095.13
Appropriation)
A-Revenue (Charged) Total 50,611.92 30.42 50,642.34 47,547.21 (-) 3,095.13
A-Revenue (Voted)
Adi Dravidiar and Tribal Welfare
2 04 3,846.92 0.34 3,847.26 2,471.91 (-) 1,375.35
Department
Agriculture and Farmers Welfare
3 05 12,875.31 2,358.72 15,234.03 14,515.40 (-) 718.63
Department
Animal Husbandry (Animal
Husbandry, Dairying, Fisheries
4 06 1,192.11 132.07 1,324.18 1,199.24 (-) 124.93
and Fishermen Welfare
Department)
Co-operation(Co-operation ,
5 12 Food and Consumer Protection 5,165.07 1,161.62 6,326.70 6,142.21 (-) 184.49
Department)
Food and Consumer
Protection(Co-operation , Food
6 13 7,693.73 6,412.59 14,106.32 13,796.36 (-) 309.96
and Consumer Protection
Department)
Health and Family Welfare
7 19 17,100.26 200.17 17,300.43 16,794.07 (-) 506.36
Department
8 20 Higher Education Department 5,285.30 316.30 5,601.60 5,284.95 (-) 316.65
Housing and Urban Development
9 26 5,560.52 168.00 5,728.52 2,912.31 (-) 2,816.21
Department
Industries, Investment Promotion
10 27 2,346.91 0.00 2,346.91 1,772.32 (-) 574.59
and Commerce Department
Information Technology and
11 31 199.20 0.00 199.20 90.03 (-) 109.17
Digital Services Department
Labour Welfare and Skill
12 32 1,696.22 3.87 1,700.09 1,351.81 (-) 348.28
Development Department
Municipal Administration and
13 34 11,498.16 1,979.58 13,477.75 11,885.02 (-) 1,592.73
Water Supply Department
Revenue and Disaster
14 41 7,474.54 153.85 7,628.39 7,044.65 (-) 583.74
Management Department
Rural Development and
15 42 22,256.22 357.61 22,613.83 20,992.11 (-) 1,621.71
Panchayat Raj Department
16 43 School Education Department 36,350.53 1,046.75 37,397.28 37,121.70 (-) 275.58
Micro, Small and Medium
17 44 892.23 18.75 910.99 791.71 (-) 119.27
Enterprises Department
Social Welfare and Women
18 45 5,867.95 276.38 6,144.33 5,306.07 (-) 838.26
Empowerment Department
Pensions and other retirement
19 50 39,502.01 0.00 39,502.02 32,180.67 (-) 7,321.35
benefits
Relief on Account of Natural
20 51 1,428.02 1,032.27 2,460.28 2,291.16 (-) 169.12
Calamities
A-Revenue (Voted) Total 1,88,231.21 15,618.87 2,03,850.11 1,83,943.70 (-) 19,906.38
B-Capital (Voted)
Agriculture and Farmers Welfare
21 05 274.47 19.39 293.86 190.57 (-) 103.29
Department
22 14 Energy Department 581.24 0.00 581.24 57.99 (-) 523.26
23 16 Finance Department 738.30 2.35 740.65 65.20 (-) 675.45
Health and Family Welfare
24 19 799.48 506.18 1,305.66 1,023.25 (-) 282.41
Department
25 20 Higher Education Department 383.59 3.00 386.59 214.10 (-) 172.49

171
State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in crore)
Sl Grant Supple- Actual
Name of the Grant Original Total Savings
No No mentary Expenditure
Highways and Minor Ports
26 21 16,340.44 351.26 16,691.70 14,443.92 (-) 2,247.78
Department
Police (Home, Prohibition and
27 22 200.00 0.00 200.00 73.17 (-) 126.83
Excise Department)
Industries, Investment Promotion
28 27 670.60 3.00 673.60 473.68 (-) 199.92
and Commerce Department
Municipal Administration and
29 34 8,425.61 1,684.11 10,109.72 8,905.32 (-) 1,204.40
Water Supply Department
30 40 Water Resources Department 4,282.56 205.93 4,488.49 3,668.83 (-) 819.66
Rural Development and
31 42 4,390.83 0.00 4,390.83 2,729.03 (-) 1,661.80
Panchayat Raj Department
32 43 School Education Department 544.96 0.00 544.96 217.54 (-) 327.42

B-Capital(Voted) Total 37,632.08 2,775.22 40,407.30 32,062.60 (-) 8,344.71

C-Loans (Voted)
33 14 Energy Department 1,843.78 0.00 1,843.78 379.60 (-) 1,464.18
34 48 Transport Department 1,073.89 0.24 1,074.13 701.38 (-) 372.75
C-Loans(Voted) Total 2,917.67 0.24 2,917.91 1,080.98 (-) 1,836.93
Grand Total 2,79,392.88 18,424.75 2,97,817.66 2,64,634.49 (-) 33,183.15
(Source: Appropriation Accounts for the year 2022-23)

172
 Appendices

Appendix 3.11
(Reference: Paragraph 3.5.1.7 (b))
Cases of surrender of funds in excess of ₹ 10 crore on 31 March 2023
(₹ in crore)
Sl Grant Major Amount
Description
No No Head surrendered
Appropriations
1 56 2049 Interest Payments 225.15
Grants
2 03 2014 Administration of Justice 35.56
Welfare of Scheduled Castes, Scheduled Tribes, Other Backward
3 04 2225 117.22
Classes and Minorities
4 05 2401 Crop Husbandry 544.63
5 05 2402 Soil and Water Conservation 22.29
6 05 2408 Food Storage and Warehousing 70.01
7 05 2415 Agricultural Research and Education 10.15
8 05 2435 Other Agricultural Programmes 18.67
9 05 2501 Special Programmes for Rural Development 54.04
10 05 4401 Capital Outlay on Crop Husbandry 93.89
11 06 2403 Animal Husbandry 39.41
12 06 2415 Agricultural Research and Education 83.13
13 07 2405 Fisheries 23.62
14 07 4405 Capital Outlay on Fisheries 17.74
Welfare of Scheduled Castes, Scheduled Tribes, Other Backward
15 09 2225 33.81
Classes and Minorities
16 10 2040 Taxes on Sales, Trade etc. 42.42
17 11 2030 Stamps and Registration 31.09
18 12 2425 Co-operation 183.20
19 13 3456 Civil Supplies 14.48
20 14 6801 Loans for Power Projects 170.99
21 16 2052 Secretariat - General Services 10.26
22 16 2054 Treasury and Accounts Administration 23.08
23 16 4070 Capital Outlay on Other Administrative Services 57.43
24 16 7610 Loans to Government Servants etc. 30.38
25 17 2235 Social Security and Welfare 70.00
26 19 2210 Medical and Public Health 400.45
27 19 2211 Family Welfare 62.11
28 19 2235 Social Security and Welfare 13.04
29 19 4210 Capital Outlay on Medical and Public Health 288.76
30 20 2059 Public Works 12.06
31 20 2202 General Education 256.02
32 20 2203 Technical Education 39.86
33 20 4202 Capital Outlay on Education, Sports, Art and Culture 36.78
34 21 3054 Roads and Bridges 45.65
35 21 5054 Capital Outlay on Roads and Bridges 179.35
36 22 2055 Police 61.86
37 22 4055 Capital Outlay on Police 46.03
38 22 7610 Loans to Government Servants etc. 11.94
39 23 2070 Other Administrative Services 34.10
40 24 2056 Jails 27.20
41 25 2041 Taxes on Vehicles 23.61
42 26 2216 Housing 1,007.49
173
State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in crore)
Sl Grant Major Amount
Description
No No Head surrendered
43 26 2217 Urban Development 57.11
44 27 2851 Village and Small Industries 11.60
45 27 5053 Capital Outlay on Civil Aviation 29.77
46 28 2220 Information and Publicity 27.24
47 29 4202 Capital Outlay on Education, Sports, Art and Culture 20.80
48 31 2852 Industries 11.50
49 32 2210 Medical and Public Health 47.09
50 32 2230 Labour, Employment and Skill Development 23.73
51 32 4250 Capital Outlay on other Social Services 42.47
52 34 2217 Urban Development 846.96
Compensation and Assignments to Local Bodies and Panchayati Raj
53 34 3604 862.57
Institutions
54 34 4215 Capital Outlay on Water Supply and Sanitation 113.14
55 34 4217 Capital Outlay on Urban Development 1,091.26
56 38 2015 Elections 22.94
57 38 2052 Secretariat - General Services 11.65
58 38 2235 Social Security and Welfare 10.80
59 39 2059 Public Works 21.02
60 39 4059 Capital Outlay on Public Works 84.77
61 39 4202 Capital Outlay on Education, Sports, Art and Culture 11.00
62 39 4216 Capital Outlay on Housing 15.16
63 39 4220 Capital Outlay on Information and Publicity 10.35
64 40 2216 Housing 12.86
65 40 2701 Major and Medium Irrigation 53.91
66 40 4700 Capital Outlay On Major Irrigation 216.48
67 40 4701 Capital Outlay on Major and Medium Irrigation 16.61
68 40 4702 Capital Outlay on Minor Irrigation 81.42
69 41 2029 Land Revenue 13.78
70 41 2053 District Administration 51.03
71 41 2235 Social Security and Welfare 454.56
72 42 2501 Special Programmes for Rural Development 31.46
73 42 2505 Rural Employment 673.34
74 42 2515 Other Rural Development programmes 84.88
Compensation and Assignments to Local Bodies and Panchayati Raj
75 42 3604 828.32
Institutions
76 43 2202 General Education 238.82
77 43 4202 Capital Outlay on Education, Sports, Art and Culture 193.66
78 44 2851 Village and Small Industries 23.52
79 44 2852 Industries 17.37
80 44 6851 Loans for Village and Small Industries 47.13
81 45 2235 Social Security and Welfare 160.55
82 45 2236 Nutrition 661.84
83 47 2250 Other Social Services 30.32
84 49 2204 Sports and Youth Services 68.95
85 50 2071 Pensions and other Retirement Benefits 731.27
86 51 2245 Relief on account of Natural Calamities 164.01
87 52 2235 Social Security and Welfare 81.83
88 54 2406 Forestry and Wild Life 83.65
89 54 4406 Capital Outlay on Forestry and Wild Life 16.24
Grand Total 12,979.70
(Source: Re-appropriation-II orders)

174
 Appendices

Appendix 3.12
(Reference: Paragraph 3.5.1.7 (b))
Cases where savings of ₹ one crore and above not surrendered
(₹ in crore)
Savings which
Sl Grant Amount
Name of the Grant/Appropriation Savings remained to be
No Number surrendered
surrendered
I Appropriations
A-Revenue
1 03 Administration of Justice 12.21 9.39 2.82
II Grant
A-Revenue
2 03 Administration of Justice 42.67 38.36 4.31
3 04 Adi Dravidiar and Tribal Welfare Department 1,375.35 1,370.62 4.73
Backward Classes, Most Backward Classes and
4 09 69.17 67.59 1.58
Minorities Welfare Department
Food and Consumer Protection (Co-operation , Food
5 13 309.96 18.19 291.77
and Consumer Protection Department)
6 16 Finance Department 41.49 39.04 2.45
Khadi, Village Industries and Handicrafts
7 18 (Handlooms, Handicrafts, Textiles and Khadi 3.76 2.11 1.65
Department)
8 19 Health and Family Welfare Department 506.36 476.78 29.58
9 20 Higher Education Department 316.65 309.76 6.89
10 21 Highways and Minor Ports Department 47.47 46.43 1.04
11 22 Police (Home, Prohibition and Excise Department) 99.85 71.60 28.25
Prisons and Correctional Services (Home,
12 24 28.40 27.21 1.20
Prohibition and Excise Department)
Information Technology and Digital Services
13 31 109.17 108.06 1.10
Department
14 32 Labour Welfare and Skill Development Department 348.28 346.95 1.33
15 39 Buildings (Public Works Department) 26.95 25.60 1.35
16 41 Revenue and Disaster Management Department 583.74 503.09 80.64
17 42 Rural Development and Panchayat Raj Department 1,621.71 1,620.59 1.12
18 43 School Education Department 275.58 244.06 31.52
Social Welfare and Women Empowerment
19 45 838.26 823.40 14.87
Department
Hindu Religious and Charitable Endowments (Tamil
20 47 Development, Religious Endowments and 32.62 30.52 2.10
Information Department)
21 51 Relief on Account of Natural Calamities 169.12 164.01 5.11
Forests(Environment, Climate Change and Forests
22 54 87.49 86.25 1.24
Department)
B-Capital
23 21 Highways and Minor Ports Department 2,247.78 2,186.61 61.17
Planning, Development and Special Initiatives
24 36 1.94 0.00 1.94
Department
25 40 Water Resources Department 819.66 768.26 51.40
C-Loans
26 26 Housing and Urban Development Department 2.65 1.12 1.52
Total 10,018.29 9,385.60 632.68
(Source: Appropriation Accounts for the year 2022-23)
* In respect of Grant No.21, savings more than ₹one crore appear under both Revenue and Capital section

175
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 3.13
(Reference: Paragraph 3.5.1.7 (b))
Surrender more than savings under the Grant/Appropriation
(₹ in lakh)
Sl
Grant Name of the Grant/Appropriation Savings Surrendered Difference
No
Revenue-Charged
Adi Dravidiar and Tribal Welfare
1 04 499.25 503.42 4.17
Department
2 56 Debt Charges (Charged Appropriation) 3,09,512.77 3,16,676.08 7,163.31
Revenue-Voted
3 01 State Legislature 972.37 972.50 0.13
Agriculture and Farmers Welfare
4 05 71,863.42 72,211.18 347.76
Department
Municipal Administration and Water
5 34 1,59,273.11 1,72,197.29 12,924.18
Supply Department
Prohibition and Excise (Home, Prohibition
6 37 1,799.52 1,805.97 6.45
and Excise Department)
7 40 Water Resources Department 9,690.61 33,247.13 23,556.52
Capital-Voted
Agriculture and Farmers Welfare
8 05 10,329.17 10,341.89 12.72
Department
Food and Consumer Protection (Co-
9 13 operation , Food and Consumer Protection 2,824.17 2,824.33 0.16
Department)
10 19 Health and Family Welfare Department 28,241.14 29,524.21 1,283.07
Stationery and Printing (Tamil
11 30 Development, Religious Endowments and 124.28 134.12 9.84
Information Department)
Labour Welfare and Skill Development
12 32 5,647.34 8,596.65 2,949.31
Department
Municipal Administration and Water
13 34 1,20,439.88 1,20,439.91 0.03
Supply Department
14 35 Human Resources Management Department 125.05 165.82 40.77
15 39 Buildings (Public Works Department) 1,323.57 12,260.68 10,937.11
Department for the Welfare of Differently
16 52 946.18 946.19 0.01
Abled Persons
Forests(Environment, Climate Change and
17 54 1,634.84 1,656.43 21.59
Forests Department)
Loans-Voted
Environment and Climate Change
18 15 (Environment, Climate Change and Forests 24.87 25.56 0.69
Department)
Municipal Administration and Water
19 34 0.86 40.00 39.14
Supply Department
20 48 Transport Department 37,274.55 37,275.89 1.34
Total 7,62,546.95 8,21,845.25 59,298.30
(Source: Appropriation Accounts for the year 2022-23)

176
 Appendices

Appendix 3.14
(Reference: Paragraph 3.5.1.7 (d))
List of Grants having Persistent Savings during 2018-2023
(₹ in crore)
Amount of Savings
Sl. No. Name of the Grant
2018-19 2019-20 2020-21 2021-22 2022-23
(A) Revenue – Voted
4.05 6.85 12.78 12.07 7.09
1 02 - Governor and Council of Ministers
(9.31) (15.07) (27.14) (26.02) (13.79)
09 - Backward Classes, Most Backward
114.75 142.35 245.67 413.55 69.17
2 Classes and Minorities Welfare
(11.20) (14.80) (24.55) (38.76) (5.85)
Department
11 - Stamps and Registration (Commercial 40.19 36.28 69.59 35.92 31.53
3
Taxes and Registration Department) (12.42) (9.74) (17.12) (7.96) (7.54)
23 - Fire and Rescue Services (Home, 25.92 33.87 64.22 21.33 42.29
4
Prohibition and Excise Department) (7.51) (9.44) (17.18) (5.58) (9.15)
28 – Information and Publicity (Tamil
9.78 13.19 22.49 40.58 28.90
5 Development and Information
(8.54) (11.04) (18.00) (26.90) (17.21)
Department)
35.61 46.98 45.00 19.70 109.17
6 31 – Information Technology Department
(22.38) (28.21) (28.43) (20.14) (54.80)
99.98 80.45 58.50 94.99 51.14
7 38 - Public Department
(18.65) (8.53) (9.29) (8.15) (7.65)
46 - Tamil Development (Tamil
20.18 5.97 9.59 11.86 13.03
8 Development and Information
(21.87) (7.30) (12.91) (13.00) (11.07)
Department)
47 - Hindu Religious and Charitable
28.89 26.61 125.30 38.66 32.62
9 Endowments (Tourism, Culture and
(9.92) (9.53) (42.96) (9.53) (6.53)
Religious Endowments Department)
49 - Youth Welfare and Sports 16.13 21.96 121.15 63.54 69.64
10 (6.93) (6.89) (43.65) (28.19) (16.99)
Development Department
(A) Revenue – Charged
0.27 0.17 0.22 0.28 0.17
11 01 – State Legislature (37.56) (28.38) (38.18) (49.63) (22.75)
2.55 1.31 2.41 0.87 4.16
12 02 - Governor and Council of Ministers (17.52) (7.59) (13.64) (5.23) (19.78)
19 - Health and Family Welfare 0.85 1.24 1.45 0.93 0.46
13 (59.67) (81.79) (53.56) (49.88) (29.31)
Department
0.08 0.88 0.36 6.67 0.31
14 38 - Public Department (21.20) (25.68) (70.29) (64.34) (25.49)
(B) Capital - Voted
04 - Adi-Dravidar and Tribal Welfare 75.90 42.55 103.95 177.91 50.58
15
Department (50.43) (31.75) (28.15) (43.91) (12.20)
05 - Agriculture and Farmer's Welfare 113.29 160.65 100.60 295.40 103.29
16
Department (24.53) (37.72) (25.97) (53.77) (35.15)
13 - Food and Consumer Protection (Co-
69.50 270.72 350.99 774.06 28.24
17 operation, Food and Consumer Protection
(32.36) (55.96) (97.12) (89.21) (8.91)
Department)
768.90 768.41 500.00 572.64 675.45
18 16 - Finance Department
(99.11) (99.79) (100) (92.36) (91.20)
38.63 45.84 132.17 169.08 172.49
19 20 - Higher Education Department
(10.21) (19.18) (48.88) (48.50) (44.62)
21 - Highways and Minor Ports 1,990.87 2,865.26 1,407.31 2,797.83 2247.78
20
Department (20.82) (23.63) (56.65) (17.29) (13.47)

177
State Finances Audit Report, Tamil Nadu for the year ended March 2023

(₹ in crore)
Amount of Savings
Sl. No. Name of the Grant
2018-19 2019-20 2020-21 2021-22 2022-23
29 - Tourism - Art and Culture (Tourism,
33.33 137.29 56.65 8.98 60.51
21 Culture and Religious Endowments
(53.29) (69.40) (27.38) (16.40) (41.69)
Department)
32 – Labour Welfare and Skill 38.78 27.22 19.57 14.31 56.47
22
Development Department (47.76) (28.37) (24.75) (22.20) (8.51)
1,336.56 1,514.88 1,534.52 1,329.78 819.66
23 40 - Water Resources Department
(43.18) (39.29) (26.36) (34.58) (18.26)
78.69 163.68 145.59 26.53 327.42
24 43 - School Education Department
(23.20) (42.59) (43.45) (15.23) (60.08)
(C) Loan - Voted
456.19 475.59 1148.26 485.72 1464.18
25 14 – Energy Department
(48.99) (27.59) (61.76) (38.37) (79.41)
15 – Environment and Climate Change
20.00 20.00 1.05 1.15 0.25
26 (Environment, Climate Change and
(100) (100) (100) (21.48) (5.31)
Forests Department)
23.74 37.43 64.26 62.43 71.89
27 16 - Finance Department
(17.99) (28.52) (50.81) (48.40) (55.74)
22 - Police (Home, Prohibition and Excise 5.00 3.61 1.69 4.81 11.94
28
Department) (71.44) (72.29) (5.87) (29.10) (56.47)
(Figures in brackets indicate savings as a percentage of total provision)
(Source: Appropriation Accounts for the respective years)
# Under Grant Nos 2 and 38, persistent savings occurred in both Voted and Charged section of Revenue head

178
 Appendices

Appendix 3.15
(Reference: Paragraph 3.5.2.3)
Rush of Expenditure (100% Expenditure in March where provision more than one crore)

100% Expenditure
Sl. Grant
Head of Account Description during March 2023
No. No
(₹ in crore)
(A) Revenue – Voted
Compensation to Government Aided Polytechnics /
1 04 2225.01.277.BD 13.25
Engineering Colleges
Educational Assistance for Meritorious Adi-Dravidar / Tribal
2 04 2225.01.277.KS 8.53
Students to study in reputed schools

3 04 2225.01.800.JB Assistance to Technically Trained persons 0.99

4 04 2225.02.277.SD Development of Particularly Vulnerable Tribal Groups 9.08

Devolution Grants to Rural Local Bodies for Providing basic
5 04 3604.00.200.BR 100.00
amenities to Adi Dravidar habitations
Buildings - Agriculture Department (Administered by Chief
6 05 2059.01.053.AW 1.96
Engineer (Buildings))
7 05 2401.00.107.AL Assistance for Unforeseen Pest attacks and Other events 0.25

8 09 2225.03.102.KF Free tools to Most Backward Classes 0.71

Assistance to Tamil Nadu Backward Classes Economic
9 09 2225.03.190.JA Development Corporation for Subsidy to Backward and Most 4.50
Backward Class farmers for Irrigation Facilities
Supply of free Bicycles to Ulemas and Motinars belonging to
10 09 2225.80.800.AE 5.44
Islamic Communities

11 09 2250.00.103.AC Repairs and Renovation of Wakf properties 2.00

12 09 2250.00.103.JA Repairs and Renovation of Christian Churches 6.00

Interest Subsidy to Co-operative institutions towards reduced

13 12 2425.00.108.KD 300.00
interest for crop loans to the farmers
Interest subsidy to Co-operative institutions for crop loan to the
14 12 2425.00.789.JA 50.00
farmers Under Special Component Plan
Establishment of Solar Powered Electric Vehicles (EV)
15 14 2810.00.104.AA 1.50
Charging Stations under State Innovation Fund
16 18 2851.00.105.AL Rebate on Sale of Khadi Cloth to Khadi Board 4.00
Payment of all fees for the students admitted under the 7.5%
17 19 2210.05.200.JE Preferential allotment of seats in BSMS, BAMS, BUMS and 1.63
BHMS courses
National Mission on AYUSH under Special Component Plan
18 19 2210.80.793.UA 3.05
for Scheduled Castes

19 19 2210.80.794.UA National Mission on AYUSH under Tribal Area Sub-Plan 1.21

20 19 2211.00.103.UC National Urban Health Mission Schemes 71.88

21 19 2211.00.103.UF National Urban Health Mission Schemes - State Share 11.79

National Urban Health Mission Schemes under Special

22 19 2211.00.793.UC 13.51
Component Plan
National Urban Health Mission Schemes under Special
23 19 2211.00.793.UF 11.93
Component Plan - State Share
Grants for implementation of Rashtriya Uchhatar Siksha
24 20 2202.03.104.UA 39.49
Abhiyan (RUSA)
Grants for implementation of Rashtriya Uchhatar Siksha
25 20 2202.03.793.UA 2.59
Abhiyan (RUSA)
Grants for implementation of Rashtriya Uchhatar Siksha
26 20 2202.03.793.UB 6.07
Abhiyan (RUSA) - State Share

179
State Finances Audit Report, Tamil Nadu for the year ended March 2023

100% Expenditure
Sl. Grant
Head of Account Description during March 2023
No. No
(₹ in crore)
Development of semi and Fully Automated Intelligent Exo-
27 20 2203.00.102.AO Skeletal and Prosthetics for Disabled Communities - Schemes 2.25
under State Innovation Fund
28 20 2203.00.112.AI Assistance to Post Graduate Students 6.63
29 22 2055.00.113.AC Assistance to Police Welfare 1.00
Non Residential Buildings - Police Department - Administered
30 22 2059.01.053.CU 1.67
by the Commissioner of Police, Chennai
Buildings- Buildings under the control of Transport
31 25 2059.01.053.AF 0.08
Commissioner (Administered by Chief Engineer (Buildings))
Grants to DTCP for implementation of ADB assisted Inclusive
32 26 2217.05.800.PD 2.23
Resilient and Sustainable Housing for the Urban Poor
33 27 2852.80.800.BB Land cost Investment Incentive 25.25
Labour Welfare Fund - controlled by the Commissioner of
34 32 2230.01.103.AC 4.70
Labour
35 32 2230.03.003.PA Two-tier Skill Development Centres under TNIPP Phase-2 6.48
36 32 2230.03.793.PA Two-tier Skill Development Centres under TNIPP Phase-2 1.44
Grants to WSPF for implementation of Under Ground
37 34 2215.02.107.AA Sewerage Scheme in Villupuram Municipality for Debt 0.08
servicing and repayment of loans availed in HUDCO
Grants to WSPF for implementation of Under Ground
38 34 2215.02.107.AB Sewerage Scheme in Tindivanam Municipality for Debt 0.09
servicing and repayment of loans availed in HUDCO
Grant to CMA for implementation of Asian Development Bank
39 34 2217.05.800.KF assisted Tamil Nadu Urban Flagship Investment Programme 13.50
(TNUFIP)
40 34 3475.00.108.JF Implementation of Urban Wage Employment Programme 25.00
41 34 3604.00.200.BN Incentive to Urban Local Bodies 419.41
Awareness Building, Capacity Building, Evaluation,
42 36 3475.00.800.JI 0.28
Documentation and Awards for Innovation
Transportation of deceased Non Resident Tamils / Repatriation
43 38 2235.01.800.AI 0.12
of Tamil Nationals in distress/ medical invalidation
Capital Grant to Andhra Pradesh for Krishna Water Supply
44 40 2215.01.101.JN 106.00
Project
45 41 2070.00.800.CK Grants to Tamil Nadu Disaster Risk Reduction Agency 13.68

46 42 2215.02.105.UB Total Sanitation Campaign - Swacch Bharat Mission 56.56

Total Sanitation Campaign - Swacch Bharat Mission - State

47 42 2215.02.105.UC 37.71
Share

48 42 2215.02.793.UA Total Sanitation Campaign - Swacch Bharat Mission 20.01

Total Sanitation Campaign - Swacch Bharat Mission - State
49 42 2215.02.793.UB 13.34
Share
50 42 2215.02.794.UA Total Sanitation Campaign - Swacch Bharat Mission 1.90
Total Sanitation Campaign - Swacch Bharat Mission - State
51 42 2215.02.794.UB 1.27
Share
52 42 2216.03.800.JJ Reconstruction and Repairs of Samathuvapurams. 67.01
Providing Training and Incubation facility to Self Help Group
53 42 2235.02.103.CA women on Food Processing technology Schemes under State 1.01
Innovation Fund
Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDU-
54 42 2501.06.003.UB 0.25
GKY)
55 42 2501.06.102.UB Startup Village Entrepreneurship Programme (SVEP) 0.44
Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDU-
56 42 2501.06.793.UE 0.10
GKY) - State Share
Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDU-
57 42 2501.06.794.UA 0.11
GKY)

180
 Appendices

100% Expenditure
Sl. Grant
Head of Account Description during March 2023
No. No
(₹ in crore)
Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDU-
58 42 2501.06.794.UE 0.07
GKY) - State Share
Assistance to the students studying 1 - 8 std. of
Government/Aided Schools where breadwinning father or
59 43 2202.01.800.BB 4.60
mother dies in an accident or permanently incapacitated -
Controlled by the Director of Elementary Education
Reimbursement of fee claimed as per the provision of section
60 43 2202.01.800.BD 12(1)(c) of Right of Children to Free and Compulsory 98.18
Education Act, 2009 (L.K.G. & U.K.G.)
61 43 2202.01.800.KN Free Supply of Woolen Sweaters to Students 1.34
Reimbursement of fee claimed as per the provision of section
62 43 2202.01.800.KU 12(1)(c) of Right of Children to Free and Compulsory 266.26
Education Act, 2009
63 43 2202.02.001.AD Foreign Educational Tour for best performing students 3.00
Incentive to Students to reduce drop out in Secondary
64 43 2202.02.109.KJ 204.68
Education level
Incentive to Students to reduce drop out in Higher Secondary
65 43 2202.02.789.JH 62.77
Education level
Incentive to Students to reduce drop out in Secondary
66 43 2202.02.796.JB 5.46
Education level
Assistance to the students studying 9 -12 std. of
Government/Aided Schools where breadwinning father or
67 43 2202.02.800.JP 9.01
mother dies in an accident or permanently incapacitated -
Controlled by the Director of School Education

68 43 2202.02.800.JS Free supply of Footwear to School going children 42.78

Free supply of Footwear to School going children under School

69 43 2225.01.789.JF 14.45
Education
70 44 2851.00.102.DD Micro Cluster development Programme 50.00

71 44 2851.00.102.MN Grants to Cluster of Tiny Industries 2.07

72 45 2235.02.103.BQ Scheme for Supply of Sewing Machines 1.35

Integrated Complex of Special Homes for Senior Citizens and
73 45 2235.02.104.KP 0.34
Destitute Children
Grants to Hindus of Tamil Nadu performing pilgrimage to
74 47 2250.00.102.AK 0.10
Manasarover and Mukthinath
75 51 2245.05.101.AC Transfer to State Disaster Response Fund 1,142.40
Development of Integrated Services Ability Platform / Super
76 52 2235.02.101.DO 1.26
App Schemes under State Innovation Fund
Providing Electronic Braile Reader to Visually Impaired
77 52 2235.02.101.NK 0.62
persons
Grants to RKMVERI, Coimbatore for conducting Disability
78 52 2235.02.101.NP 1.78
Management and Special Education Courses

79 54 2406.01.101.JF DGPS Survey of notified Forest Areas of Tamil Nadu 0.19

Preparation of Detailed Project Report - Botanical Garden,

80 54 2406.02.110.AW 0.59
Chennai
(B) Capital - Voted
Upgrading infrastructure facilities in the Schools of Adi-
81 04 4225.01.277.JN Dravidar Department with loan assistance of NABARD under 2.45
RIDF
82 07 4405.00.101.JT Establishment of Native fish species production Centre 4.34
Project for the formation at Chennai Peripheral Ring Road
(CPRR) with Asian Infrastructure Investment Bank (AIIB) and
83 21 5054.03.337.JP Organization of the Petroleum Exporting Countries 30.00
(OPEC) Fund for International Development Assistance
(OFID)
84 24 4070.00.800.KE Construction of Buildings for Prison Department 1.37
85 29 5452.80.104.AA Promotion of Traditional Sports 1.00

181
State Finances Audit Report, Tamil Nadu for the year ended March 2023

100% Expenditure
Sl. Grant
Head of Account Description during March 2023
No. No
(₹ in crore)
Design, Build and Commissioning of 120 MLD (2 Nos.)
86 34 4215.01.101.PD Capacity Sewage Treatment Plant at Kodungaiyur Zone I & II - 25.00
TNIPP-2
Rehabilitation and Modification works and additional works
87 34 4215.01.101.PE in existing 110 MLD Capacity Sewage Treatment Plant at 4.37
Kodungaiyur TNIPP-2
Design, Build and Commissioning of additional 60 MLD
88 34 4215.01.101.PF 6.46
Capacity Sewage Treatment Plant at Perungudi - TNIPP-2
Rehabilitation and Modification works and additional works in
89 34 4215.01.101.PG existing 60 and 120 MLD Capacity Sewage Treatment Plant at 6.41
Koyambedu TNIPP-2
Design, Build and Commissioning of additional 50 MLD
90 34 4215.01.101.PH 7.33
Capacity Sewage Treatment Plant at Nesapakkam - TNIPP-2
Rehabilitation and Modification works and additional works in
91 34 4215.01.101.PJ existing 54 and 60 MLD Capacity Sewage Treatment Plant at 5.45
Perungudi TNIPP-2
92 34 4215.01.102.JA Rural Water Supply under Minimum Needs Programme 40.82
93 34 4215.01.789.JA Rural Water Supply under Minimum Needs Programme 21.05
94 34 4215.01.796.JA Rural Water Supply under Minimum Needs Programme 1.91
Capital Grant to TNUDF (GF-II) for Implementing World
95 34 4217.60.800.PH Bank Assisted Tamil Nadu Sustainable Urban Development 28.77
Project (TNSUDP)
Capital Grants to Project Sustainability Grant Fund (PSGF) for
implementation of Asian Development Bank (ADB) assisted
96 34 4217.60.800.PM 75.00
Tamil Nadu Urban Flagship Investment Programme (TNUFIP)
Tranche-II
Capital Grants to Project Sustainability Grant Fund (PSGF) for
implementation of Solar Development Sub-Project under the
97 34 4217.60.800.PN 0.78
Asian Development Bank assisted Tamil Nadu Urban Flagship
Investment Programme (TNUFIP) Tranche-I

98 42 4515.00.103.JC Implementation of Road Works with NABARD assistance 94.12

Implementation of Road Works with NABARD assistance

99 42 4515.00.789.JD under Special Component Plan for Scheduled Castes - 28.24
Controlled by DRD
Implementation of Road Works with NABARD assistance
100 42 4515.00.796.JA 3.14
under Tribal Sub-Plan
Construction / Upgradation of the Library Building under
101 43 4202.04.105.JC 0.57
control of Directorate of Public Libraries
Total 3,802.84
(Source: Appropriation Accounts for the year 2022-23)

182
 Appendices

Appendix 3.16
(Reference: Paragraph 3.6)
Details of Contingency Fund advances sanctioned during the year

Amount utilised
CF Date of Issue of Provision as out of CF as
Head of Account
Order Government per CF order reported by AG
& Nomenclature
No. order (in ) (A&E)
(In )
G.O. Rt. No. 363 2851.00.102.LW - Small Tea
1 Growers Protection Scheme
5,00,00,000 5,00,00,000
dated 12-05-2022
4059.01.051.JY - Construction of
G.O. Rt. No. 461 New Building Complex for the
2 Tamil Nadu Legislative Assembly
19,60,17,000 19,60,16,733
dated 24-06-2022
and Secretariat.
G.O. Rt. No. 495 2054.00.098.AI - Director General
3 of Audit
9,09,000 8,43,828
dated 09-07-2022
3425.60.200.AL - Tami Nadu
G.O. Rt. No. 534
4 Unmanned Aerial Vehicles 3,00,00,000 3,00,00,000
dated 18-07-2022 Corporation
2039.00.001.AA - Headquarters
G.O. Rt No 614
5 Establishment - Commissioner of 2,99,72,000 2,80,70,685
dated 17.08.2022 Prohibition and Excise Department
2203.00.112.AO – Expenditure on
Education to the Government
G.O. Rt No 620 School Students passed in the
6 Engineering Entrance Examination
1,71,000 1,70,034
dated 22.08.2022
for studying at Indian Institute of
Technology
2236.02.102.BG - Providing
Breakfast to the Government
G.O. Rt No 623 Primary School Students on all
7 School Days under Chief Minister's
11,69,48,000 11,69,48,000
dated 22.08.2022
Breakfast Scheme

2203.00.112.AN - Establishment of
G.O. Rt No 650
8 Project Monitoring Unit (PMU) at 4,40,000 2,54,995
dated 01.09.2022 Directorate of Technical Education.
G.O. Rt No 691 2054.00.098.AI - Director General
9 of Audit
20,76,000 4,86,261
dated 09.09.2022
2404.00.800.AC - Settlement of
Milk arrear payment to Village
G.O. Rt No 794
10 Milk producers towards supply of 15,00,00,000 15,00,00,000
dated 10.10.2022 Milk Powders as relief assistance to
Srilankan People
2236.02.102.BG - Providing
Breakfast to the Government
G.O. Rt No 802
11 Primary School Students on all 2,84,67,000 0
dated 12.10.2022 School Days under Chief Minister's
Breakfast Scheme
G.O. Rt No 814 2235.01.105.AC - Refugees relief
12 measures
1,39,00,000 1,39,00,000
dated 16.10.2022
G.O. Rt No 1017
13 2225.01.277.AE - Hostels 33,34,000 33,34,000
dated 23.12.2022
G.O. Rt No 1022
14 2055.00.109.AA - District Police 75,00,000 75,00,000
dated 26.12.2022
G.O. Rt No 38 2205.00.102.JA - Lumpsum
15 Provision for Cultural Activities
3,50,00,000 3,50,00,000
dated 13.01.2023
2551.01.137.JF - Assistance to
Tamil Nadu Urban Habitat
Development Board (TNUHDB) for
G.O. Rt No 39
16 settlement of beneficiaries 1,74,15,000 27,43,000
dated 13.01.2023 contribution in respect of removal
of encroachment in Megamalai
Wildlife sanctuary in Theni District

G.O. Rt No 90 2220.01.105.AJ - Film and T.V.

17 Institute of Tamil Nadu
4,85,000 4,84,100
dated 06.02.2023

183
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Amount utilised
CF Date of Issue of Provision as out of CF as
Head of Account
Order Government per CF order reported by AG
& Nomenclature
No. order (in ) (A&E)
(In )
G.O. Rt No 111 4701.01.800.FB - Barrage -
18 NABARD assistance
2,00,00,000 1,85,95,971
dated 10.02.2023
G.O. Rt No 119
19 2235.02.104.BH - PARAVAI 8,15,000 8,15,000
dated 13.02.2023
G.O. Rt No 120
20 2055.00.108.AB - Law and Order 25,00,000 17,38,617
dated 13.02.2023
2701.80.004.PA - Strengthening of
G.O. Rt No 130
21 Institute of Water Studies under 93,70,000 92,63,576
dated 15.02.2023 TNIAM Project-II

G.O. Rt No 131 2052.00.090.AT - Human

22 Resources Management Department
22,50,000 22,50,000
dated 15.02.2023
G.O. Rt No 227 2055.00.108.AM - Security -
23 Chennai Police
3,58,25,000 3,58,25,000
dated 17.03.2023
Total 75,33,94,000 70,42,39,800
(Source: Furnished by O/o AG(A&E))
Note: CF order. No. 2 and 17 were considered as fully utilized since unutilised amount was less than ₹ 1000

184
 Appendices

Appendix 4.1
(Reference: Paragraph 4.5)
List of outstanding Utilisation Certificates
Sl. Year of UC No. of Amount
Name of the Department
No. due UCs due (₹ in crore)

Directorate of Rural Development and

1 2022-23 2 5.81
Panchayat
2 2017-18 1 4.56
3 2018-19 1 1.71
Commissionerate of Industries and
4 2020-21 1 0.60
Commerce
5 2021-22 2 3.82
6 2022-23 2 4.24
7 Registrar of Co-operative Society 2022-23 2 0.73
8 2019-20 1 3.04
Commissionerate of Municipal
9 2020-21 1 11.17
Administration
10 2021-22 3 97.98
11 Directorate of Adi-Dravidar Welfare 2021-22 1 0.00**
BC, MBC and Minorities Welfare
12 2021-22 1 0.97
Department – Secretariat
13 2020-21 1 6.27
Chennai Metropolitan Water Supply and
14 2021-22 2 350.00
Sewerage Board
15 2022-23 2 87.50
Housing and Urban Development
16 2021-22 1 50.00
Department – Secretariat
17 Tamil Nadu Agricultural University, 2021-22 2 41.46
18 Coimbatore 2022-23 2 17.98
19 Directorate of Agriculture 2021-22 1 0.00*
20 2017-18 1 12.20
21 Directorate of Town and Country Planning 2021-22 1 18.78
22 2022-23 1 13.00
23 Directorate of Medical Education 2018-19 1 6.24
24 Directorate of Town Panchayat 2021-22 1 6.21
25 2021-22 2 3.08
Tamil Nadu Slum Clearance Board
26 2022-23 10 687.93
27 Tamil Nadu Physical Education and Sports 2021-22 1 0.01
28 University 2022-23 1 0.14
Total 48 1,435.43
100 30,000
(Source: Notes to Accounts 2022-23)

185
 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 4.2
(Reference: Paragraph 4.10)
Expenditure under Minor Head ‘800 – Other expenditure’
(₹ in crore)

Expenditure under Total

Sl. No. Major Head Percentage
Minor Head ‘800’ Expenditure

1. 4701 - Capital Outlay on Medium Irrigation 378.54 378.19 100.09

2. 4070 - Capital Outlay on Other Administrative 145.04 145.04 100.00

Services
3. 4236 - Capital Outlay on Nutrition 5.82 5.82 100.00
4. 4700 - Capital Outlay on Major Irrigation 2,691.43 2,691.43 100.00
5. 4801 - Capital Outlay on Power Projects 57.99 57.99 100.00

6. 4859 - Capital Outlay on Telecommunication and 184.00 184.00 100.00

Electronic Industries
7. 5475 - Capital Outlay on other General Economic 33.70 33.70 100.00
Services
8. 4408 - Capital Outlay on Food, Storage and 188.17 191.82 98.10
Warehousing
9. 2852 - Industries 1,528.06 1,774.13 86.13
10. 2425 - Co-operation 4,471.16 5,438.73 82.21
11. 2700 - Major irrigation 464.24 607.06 76.47
12. 2701 - Major and Medium Irrigation 1,054.26 1,544.34 68.27
13. 2401 - Crop Husbandry 7,927.78 13,286.61 59.67
(Source: Notes to Accounts 2022-23)

186
 Appendices

Appendix 4.3
(Reference: Paragraph 4.10)
Receipts under Minor Head ‘800 – Other receipts’
(₹ in crore)
Receipts under
Total
Sl. No. Major Head Minor Head Percentage
Receipts
‘800’
1. 0250 – Other Social Services 391.94 389.85 100.54
2. 1456 - Civil Supplies 15.77 15.75 100.13
3. 0211 – Family Welfare 270.77 270.77 100.00
4. 0215 - Water Supply and Sanitation 0.89 0.89 100.00
5. 0217 - Urban Development 1,091.90 1,091.90 100.00
6. 0407 - Plantations 0.01 0.01 100.00
7. 0408 - Food Storage and Warehousing 6.95 6.95 100.00

8. 0415 - Agricultural Research and

0.01 0.01 100.00
Education
9. 0506 - Land Reforms 0.02 0.02 100.00

10. 0810 - Non-Conventional Sources of

0.54 0.54 100.00
Energy
11. 0875 - Other Industries 0.01 0.01 100.00
12. 1051 - Ports and Light Houses 3.37 3.37 100.00
13. 1056 - Inland Water Transport 0.24 0.24 100.00
14. 1452 - Tourism 0.26 0.26 100.00
15. 0235 - Social Security and Welfare 144.08 145.69 98.89
16. 0405 - Fisheries 160.52 173.75 92.39
17. 0435 - Other Agricultural Programmes 53.31 61.23 87.07
18. 0425 - Co-operation 35.82 41.74 85.82
19. 0070 - Other Administrative Services 1,045.01 1,225.48 85.27
20. 0702 - Minor Irrigation 2.42 2.91 83.16
21. 0029 - Land Revenue 200.45 247.73 80.91
22. 0852 - Industries 20.02 25.85 77.45

23. 0515 - Other Rural Development

1.49 1.93 77.20
Programmes
24. 0406 - Forestry and Wildlife 81.70 112.71 72.49
25. 0701 - Major and Medium Irrigation 50.01 70.74 70.70
26. 0403 - Animal Husbandry 8.26 12.68 65.14
27. 0220 - Information and Publicity 6.03 9.55 63.14
28. 0059 - Public Works 17.21 28.79 59.78
29. 0210 - Medical and Public Health 914.98 1,607.58 56.92
30. 0049 - Interest Receipts 2,612.83 4,747.10 55.04
31. 0216 - Housing 90.71 178.16 50.91
(Source: Notes to Accounts 2022-23)

187
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 4.4
(Reference: Paragraph 4.16)
List of Bodies and Authorities, the accounts of which
had not been received as at the end of 2022-23

No. of
Sl. Year for which accounts Accounts
Name of the body/authority
No. have not been received pending up to
F.Y 2022-23
Universities
1 Alagappa University, Karaikudi 2017-18 to 2022-23 6
2 Anna University, Chennai-25 2018-19 to 2022-23 5
3 Bharathiar University, Coimbatore 2021-22, 2022-23 2
2015-16, 2017-18, 2020-21,
4 Bharathidasan University, Trichy 5
2021-22, 2022-23
2016-17, 2017-18, 2021-22,
5 Madurai Kamaraj University, Madurai 4
2022-23
6 Manonmaniam Sundaranar University, Tirunelveli 2021-22, 2022-23 2
2017-18, 2020-21, 2021-22,
7 Mother Teresa Women’s University, Kodaikanal 4
2022-23
8 Periyar University, Salem 2017-18 to 2022-23 6
9 Thiruvallur University, Fort Campus, Vellore 2021-22, 2022-23 2
10 University of Madras, Chennai-5 2015-16, 2021-22, 2022-23 3
11 Tamil Nadu Open University, Guindy, Chennai-25 2021-22, 2022-23 2
12 Annamalai University, Chidambaram 2020-21, 2021-22, 2022-23 3
13 Tamil University, Thanjavur 2021-22, 2022-23 2
14 Tamil Nadu Agriculture University, Coimbatore 2020-21, 2021-22, 2022-23 3
Tamil Nadu Veterinary and Animal Science
15 2021-22, 2022-23 2
University, Madhavaram, Chennai
Tamil Nadu Dr. J. Jayalalitha Fisheries University,
16 2021-22, 2022-23 2
Nagapattinam
Engineering Colleges
17 PSG College of Technology 2022-23 1
18 Thiyagarajar College of Engineering 2021-22, 2022-23 2
19 Coimbatore College of Engineering 2019-20, 2022-23 2
Arts & Science Colleges
A.Veeriya Vandayar Memorial Sri Pushpam
20 2022-23 1
College, Poondi, Thanjavur Dt.
21 Ambai Arts College, Ambasamudram 2022-23 1
Annammal College of Education for Women,
22 2022-23 1
Tuticorin
23 Arignar Anna College, Aralvoymoli 2019-20, 2021-22 2
24 Jamia Darussalam Arabic College, Oomerabad 2022-23 1
25 Khadir Mohideen College, Adirampattinam 2019-20 1
26 Lakshmipuram College of Arts and Science, Neyoor 2022-23 1
27 Madras Christian College, Tambaram, Chennai 2022-23 1
28 Mazharul Uloom College, Ambur 2022-23 1
29 Nesamony Memorial Christian College, Marthandam 2022-23 1
Pasumpon Muthu Ramalinga Thevar College,
30 2021-22, 2022-23 2
Usilampatti, Madurai
31 Pasumpon Muthu Ramalinga Thevar College, Nallur 2022-23 1
32 Poompuhar College, Mayiladuthurai 2022-23 1
33 Sacred Heart College, Tirupathur 2022-23 1

188
 Appendices

No. of
Sl. Year for which accounts Accounts
Name of the body/authority
No. have not been received pending up to
F.Y 2022-23
Sri Kumara Gurupara Swamigal Arts College,
34 2020-21, 2022-23 2
Srivaikundam
Sri Sathguru Sangeetha Vidyalayam College of
35 2022-23 1
Music, Madurai
36 S.T. Hindu College, Nagercoil 2022-23 1
The Madras School of Social Work, Egmore,
37 2022-23 1
Chennai
38 Thiruvalluvar College, Papanasam 2022-23 1
Tirunelveli Dakshina Mara Nadar Sangam College,
39 2022-23 1
T.Kallikulam
Tranqueber Bishop Manikam Lutheran College, 2017-18 to 2020-21, 2022-
40 5
Porayar 23
41 V.O.Chidambaram College of Education, Tuticorin 2018-19 1
42 Vivekananda College, Agasteeswaram 2022-23 1
43 A P C Mahalakshmi College for Women, Tuticorin 2022-23 1
44 Aditanar College of Arts and Science, Tiruchendur 2022-23 1
Arulmigu Palani Andavar College of Arts and
45 2020-21 1
Culture, Palani
Arumugam Pillai Seethai Ammal College,
46 2022-23 1
Tirupathur
47 AVC College, Mayiladuthurai 2019-20 1
2017-18, 2018-19, 2021-22,
48 Ayya Nadar Janaki Ammal College, Sivakasi 4
2022-23
49 Bishop Heber College, Trichy 2021-22, 2022-23 2
50 CBM College, Coimbatore 2021-22 1
51 Devanga Arts College, Aruppukottai 2022-23 1
Dhanabagiyam Krishnaswamy Mudaliar College for
52 2020-21 1
Women, Sainathapuram, Vellore
53 Dharmapuram Adinam Arts College, Mayiladuthurai 2020-21, 2022-23 2
EM Gopalakrishna Kone Yadava Women’s College,
54 2022-23 1
Madurai
55 Fatima College, Madurai 2022-23 1
56 Gobi College of Arts and Science, Erode 2019-20 to 2021-22 3
57 GTN Arts College, Dindigul 2022-23 1
58 Islamiah College, Vaniyambadi 2019-20, 2020-21 2
59 Jayaraj Annapackiam College, Periakulam 2020-21 1
60 Kalai Kaviri College of Arts, Trichy 2017-18, 2022-23 2
61 Kongundu Arts and Science College, Coimbatore 2019-20 1
62 Lady Doak College, Madurai 2022-23 1
63 Lakshmi College of Education, Dindigul 2021-22, 2022-23 2
64 Madura College, Madurai 2022-23 1
65 Madurai Institute of Social Sciences, Madurai 2022-23 1
66 Mannar Thirumalai Naicker College, Madurai 2018-19 1
67 Meston College of Education, Royapettah, Chennai 2019-20 1
Nadar Mahajana Sangam, S. Vellaichamy Nadar
68 2022-23 1
College, Madurai
69 Nallamuthu Gounder Mahalingam College, Pollachi 2017-18 to 2022-23 6
70 Nazareth Margosesis College, Nazareth 2019-20, 2022-23 2
71 Nirmala College for Women, Coimbatore 2021-22 1
NKT National College of Education, Triplicane,
72 2020-21 1
Chennai
NVKSD College of Education, Tiruvattar,
73 2022-23 1
Kanyakumari District.

189
State Finances Audit Report, Tamil Nadu for the year ended March 2023

No. of
Sl. Year for which accounts Accounts
Name of the body/authority
No. have not been received pending up to
F.Y 2022-23
74 Pachaiyappa’s College, Chetput, Chennai 2022-23 1
75 Pachaiyappa’s College for Men, Kancheepuram 2022-23 1
Pasumpon Thiru. Muthu Ramalinga Thevar
76 2018-19 1
Memorial College, Kamuthi, Ramnad Dt.
77 Popes College, Sawyerpuram 2022-23 1
PSG College of Arts and Science (Autonomous),
78 2019-20, 2020-21 2
Coimbatore
PSGR Krishammal College for Women, Peelamedu,
79 2017-18, 2019-20, 2020-21 3
Coimbatore
Rajah’s College of Sanskrit, Tamil and Music
80 2022-23 1
Studies, Thiruvaiyaru
81 Rajapalayam Rajus College, Rajapalayam 2018-19, 2019-20 2
2017-18 to 2020-21, 2022-
82 Ramaswamy Tamil College, Karaikudi 5
23
Sadakathulla Appa College, Palayamkottai,
83 2021-22, 2022-23 2
Tirunelveli
84 Saiva Bhanu Kshatriya College, Aruppukottai 2017-18 to 2022-23 6
85 Sarah Tucker College, Tirunelveli 2022-23 1
86 Seethalakshmi Ramaswami College for Men, Trichy 2022-23 1
87 Senthamil College, Madurai 2020-21, 2021-22, 2022-23 3
88 Senthamil Oriental College, Madurai 2021-22, 2022-23 2
89 Sourashtra College, Madurai 2019-20 to 2021-22 3
90 Sree Sevugan Annamalai College, Devakottai 2017-18, 2022-23 2
91 Sri GVG Visalakshi College for Women, Udumalpet 2017-18 to 2021-22 5
92 Sri Paramakalyani College, Alwarkurichi 2018-19 to 2021-22 4
93 Sri Parasakthi College for Women, Courtalam 2022-23 1
Sri Ramakrishna Mission Vidyala Maruthi College
94 2022-23 1
of Physical Education, Coimbatore
Sri Ramakrishna Mission Vidyalaya College of Arts
95 2018-19, 2019-20 2
and Science, Coimbatore
96 Sri S Ramaswamy Naidu Memorial College, Sattur 2018-19, 2022-23 2
97 Sri Sarada College for Women, Salem 2017-18 1
98 Sri Vasavi College, Erode 2022-23 1
Srimath Siva Gnana Balaya Swamigal Tamil, Arts
99 2018-19 1
and Science College, Mailam
100 St.Ignatius College of Education, Palayamkottai 2020-21, 2022-23 2
St.Christopher’s College of Education, Periyamet,
101 2017-18, 2018-19, 2019-20 3
Chennai
102 St.Xavier’s College, Palayamkottai, Tirunelveli 2021-22, 2022-23 2
St.Xavier’s College of Education, Palayamkottai,
103 2022-23 1
Tirunelveli
Thavathiru Santhalinga Adigalar Arts, Science and
104 2021-22, 2022-23 2
Tamil College, Coimbatore
105 The American College, Madurai 2022-23 1
The Madurai Diraviyam Thayumanavar Hindu
106 2022-23 1
College, Tirunelveli
The Standard Fire Works Rajaratnam College for
107 2018-19 1
Women, Sivakasi
The Women’s Christian College, Nungambakkam,
108 2019-20, 2022-23 2
Chennai

190
 Appendices

No. of
Sl. Year for which accounts Accounts
Name of the body/authority
No. have not been received pending up to
F.Y 2022-23
109 Thiagarajar College of Preceptors, Madurai 2018-19, 2019-20, 2020-21 3
110 Urumu Dhanalakshmi College, Trichy 2022-23 1
111 V.O. Chidambaram College of education, Tuticorin 2018-19 1
112 Vivekananda College, Madurai 2022-23 1
113 Women’s Christian College, Nagercoil 2017-18, 2018-19, 2019-20 3
114 Yadava College, Madurai 2022-23 1
YMCA College of Physical Education, Nandanam,
115 2017-18, 2018-19, 2020-21 3
Chennai
Agurchand Manmull Jain College, Meenambakkam, 2017-18, 2018-19, 2019-20,
116 4
Chennai - 600 114 2020-21
Arulmigu Palani Andavar Arts College for Women,
117 2020-21 1
Chinnakalaymaputhur, Palani
A. Doraisamy Nadar Maragathavalli Ammal
118 College, (A.D.M. College for Women), 2019-20, 2020-21 2
Vellipalayam, Nagapattinam
Chikkaiah Naicker College, Veerappanchatram
119 2020-21, 2022-23 2
(PO), Erode 638 004
Cardamom Planters' Association College, PB No.29,
120 Pankajam Nagar, Bodinayakanur - 625 513 2020-21 1
Theni Dist.
C.Kandasami Naidu College for Women,
121 2022-23 1
Cuddalore 607 001
122 Dr. Jakir Hussain College, Ilayangudi - 630 702 2019-20, 2020-21, 2022-23 3
Dhanraj Baid Jain College, Jothi Nagar, Oggiyam,
123 2019-20, 2020-21, 2022-23 3
Thoraipakkam, Chennai - 600 096
Dwraka Doss Govardhan Doss Vaishnav College,
124 445, Periyar EVR High Road, Arumbakkam, 2018-19, 2019-20, 2020-21 3
Chennai - 600 106
Erode Arts & Science College, Rangampalayam,
125 2017-18, 2018-19 2
Erode 638 009
Guru Nanak College, Velachery Road, Velachery, 2017-18, 2018-19, 2019-20,
126 4
Chennai - 600 042, 2020-21
Hajee Karutha Rowther Howdia College, 2018-19, 2019-20, 2020-21,
127 4
Uthamapalayam - 626 533 2021-22,
Holy Cross College, PB No.118, Teppakulam,
128 2020-21, 2022-23 2
Tiruchirappalli - 620 002
J.K.K. Nataraja College of Arts and Science,
129 2020-21 1
Komarapalayam 638 183
Jamal Mohammed College, No. 7, Race Course
130 2020-21 1
Road, Khaja Nagar, Tiruchirappalli - 620 020
2018-19, 2019-20, 2020-21,
131 Loyala College, Nungambakkam, Chennai -600 634 4
2022-23
Muzyyath Sha Sirguro Wakf Board College,
132 2020-21 1
K.K.Nagar, Madurai -625 020
133 National College, Tiruchirappalli - 620 001 2020-21 1
Nehru Memorial College, Puthanampatti,
134 2016-17, 2020-21 2
Tiruchirappalli 621 007
Pachaiyappa's College for Women, Kancheepuram -
135 2017-18, 2019-20, 2020-21, 3
631 503
Providence College for Women, Spring Field,
136 2016-17, 2020-21 2
Coonoor – 643 104 The Nilgiris
Pioneer Kumaraswamy College, Nagercoil – 629
137 2022-23 1
003 Kanyakumari Dist.

191
State Finances Audit Report, Tamil Nadu for the year ended March 2023

No. of
Sl. Year for which accounts Accounts
Name of the body/authority
No. have not been received pending up to
F.Y 2022-23
Rama Krishna Mission Vivekananda College, Sir
138 P.S. Siva Swami Salai, Mylapore, Chennai – 600 2019-20, 2020-21 2
004
139 St. Jude’s College, Thoothoor – 629 176 2018-19, 2019-20, 2022-23 3
Sir Theagaraya College, T.H. Road, Old
140 2018-19, 2019-20, 2020-21 3
Washermenpet, Chennai – 600 021
Seetha Lakshmi Achi College for Women, Pallathur
141 2020-21 1
– 630 107 Sivagangai Dist.
142 Salem Sowdeswari College, Salem – 636 010 2016-17, 2020-21 2
Stella Maris College, 17, Cathedral Road, Chennai –
143 2017-18, 2018-19, 2019-20 3
600 086
Tamilavel Umamaheswaranar Karanthai Arts
144 2017-18, 2020-21 2
College, Karunthattankudi, Thanjavur – 613 002
Stella matutina College of Education, Ashok Nagar,
145 2019-20, 2020-21 2
Chennai
VV Vanniaperumal College for Women,
146 2019-20, 2020-21 2
Virudhunagar – 626 001
Polytechnics
A.D.J. Dharmambal Polytechnic College,
147 2020-21, 2021-22, 2022-23 3
Nagapattinam
A.M.K. Technology Polytechnic College,
148 2020-21, 2021-22, 2022-23 3
Sembarambakkam, Chennai
2019-20, 2020-21, 2021-22,
149 Annamalai Polytechnic College, Chettinad 4
2022-23
Ayya Nadar Janaki Ammal Polytechnic College for
150 2020-21, 2021-22, 2022-23 3
Women, Sivakasi
Bhakthavachalam Polytechnic College,
151 2020-21, 2021-22, 2022-23 3
Kanchipuram
152 CIT Sandwich Polytechnic College, Coimbatore 2019-20, 2022-23 2
153 GRG Polytechnic College for Women, Coimbatore 2020-21, 2022-23 2
154 Kamaraj Polytechnic College, Kanyakumari 2021-22, 2022-23 2
155 Mohammed Sathak Polytechnic College, Kilakarai 2020-21, 2021-22, 2022-23 3
156 Murugappa Polytechnic College, Avadi, Chennai 2022-23 1
157 Muthaiah Polytechnic College, Chidambaram 2021-22, 2022-23 2
158 Nachimuthu Polytechnic College, Pollachi 2021-22, 2022-23 2
159 NPA Centenary Polytechnic College, Kotagiri 2020-21, 2022-23 2
P.T. Lee Chengalvaraya Naickar Polytechnic,
160 2020-21, 2021-22, 2022-23 3
Vepery, Chennai
PAC Ramasamy Raja Polytechnic College,
161 2021-22, 2022-23 2
Rajapalayam
162 Pattukottai Polytechnic College, Pattukottai 2022-23 1
163 Periyar Centenary Girls Polytechnic College, Vallam 2022-23 1
164 PSG Polytechnic College, Coimbatore 2022-23 1
PSN Ramasamy Ayyar Memorial Polytechnic
165 2020-21, 2021-22, 2022-23 3
College for Girls, Trichy
166 Rajagopal Polytechnic College, Gudiyatham 2021-22, 2022-23 2
Ramakrishna Mission Polytechnic College,
167 2021-22, 2022-23 2
Mylapore, Chennai
2018-19, 2019-20, 2020-21,
168 Rukmani Shanmugam Polytechnic College, Madurai 5
2021-22, 2022-23
169 Sakthi Polytechnic College, Sakthinagar 2021-22, 2022-23 2
170 Sankar Polytechnic College, Sankarnagar 2020-21, 2021-22, 2022-23 3

192
 Appendices

No. of
Sl. Year for which accounts Accounts
Name of the body/authority
No. have not been received pending up to
F.Y 2022-23
171 Seshasayee Institute of Technology, Trichy 2020-21, 2021-22, 2022-23 3
172 Sri Krishna Polytechnic College, Coimbatore 2020-21, 2021-22, 2022-23 3
Sri Ramakrishna Mission Vidyalaya Polytechnic
173 2020-21, 2021-22, 2022-23 3
College, Coimbatore
174 SSM Polytechnic College, Komarapalayam 2022-23 1
175 Thiyagarajar Polytechnic College, Salem 2021-22, 2022-23 2
176 Vallivalam Desikar Polytechnic, Nagapattinam 2020-21, 2021-22, 2022-23 3
177 VSV Nadar Polytechnic College, Virudhunagar 2021-22, 2022-23 2
178 Arulmigu Palaniandavar Polytechnic College, Palani 2020-21,2022-23 2
179 Arasan Ganesan Polytechnic College, Sivakasi 2020-21 1
180 EIT Polytechnic College, Kavindapadi 2019-20, 2020-21, 2022-23 3
Others
2015-16, 2016-17, 2017-18,
181 District Blindness Control Society, Salem 2018-19, 2019-20, 2020-21, 8
2021-22, 2022-23
2017-18, 2018-19, 2019-20,
182 Spastics Society of Tamil Nadu 6
2020-21, 2021-22, 2022-23
183 State TB Society, Chennai 2005-06 to 2022-23 18
2016-17, 2017-18, 2018-19,
Scheiffelein Leprosy Research and Training Center,
184 2019-20, 2020-21, 2021-22, 7
Vellore
2022-23
185 Cancer Institute (Wia), Adyar, Chennai 2022-23 1
186 National Rural Health Mission 2022-23 1
187 Tamil Nadu Health Systems Project 2022-23 1
188 Voluntary Health Services, Taramani, Chennai 2020-21,2021-22, 2022-23 3
2018-19, 2019-20, 2020-21,
189 Tamil Nadu Social Welfare Board 5
2021-22, 2022-23
2018-19, 2019-20, 2020-21,
190 Tamil Nadu Third Gender Welfare Board 5
2021-22, 2022-23
2018-19, 2019-20, 2020-21,
191 Tamil Nadu Social Welfare Board 5
2021-22, 2022-23
192 Tamil Nadu Wakf Board 2013-14 to 2022-23 10
193 Tamil Nadu Basketball Association, Chennai 2008-09 to 2022-23 15
2019-20, 2020-21, 2021-22
194 Tamil Nadu Institute of Labour Studies 4
& 2022-23
2019-20, 2020-21, 2021-22
195 Tamil Nadu Labour Welfare Board 4
& 2022-23
2017-18, 2018-19, 2019-20,
196 Tamil Nadu Manual Workers Welfare Board 6
2020-21, 2021-22, 2022-23
2017-18, 2018-19, 2019-20,
197 Jeevan Blood Bank and Research Centre 6
2020-21, 2021-22, 2022-23
Head Master, Little Flower Convent Higher
198 2014-15 to 2022-23 9
Secondary School for the Blind, Chennai
Head Master, Little Flower Convent Higher
199 2011-12 to 2022-23 12
Secondary School for the Deaf, Chennai
200 St. Louis Institute for Deaf and Blind 2012-13 to 2022-23 11
Avinashalingam Education Trust, Social Welfare,
201 2016-17 to 2022-23 7
Coimbatore
Kuppuswamy Shastri Research Institute, Royapettah,
202 2016-17 to 2022-23 7
Chennai

193
State Finances Audit Report, Tamil Nadu for the year ended March 2023

No. of
Sl. Year for which accounts Accounts
Name of the body/authority
No. have not been received pending up to
F.Y 2022-23
New Century Welfare Society, Social Welfare,
203 2016-17 to 2022-23 7
Ambattur, Chennai
204 Society for Community Organization, Trichy 2014-15 to 2022-23 9
205 Women Indian Association, Chepauk, Chennai 2007-08 to 2022-23 16
Women Voluntary Service Of Tamil Nadu, Chetpet,
206 2014-15 to 2022-23 9
Chennai
207 Avvai Home, Adyar, Chennai 2015-16 to 2022-23 8
2017-18, 2018-19, 2019-20,
208 Kandasamy Kandars Trust Namakkal 6
2020-21, 2021-22, 2022-23
2017-18, 2018-19, 2019-20,
209 Stree Seva Mandir, Chennai 6
2020-21, 2021-22, 2022-23
2017-18, 2018-19, 2019-20,
210 Andhra Mahila Sabha, Chennai 6
2020-21, 2021-22, 2022-23
211 Tamil Nadu Urban Habitat Development Board 2020-21 and 2021-22 2
212 Chennai Metro Water Supply and Sewerage Board 2021-22 1
213 Tamil Nadu Housing Board 2021-22 1
214 Irrigation Management Training Institute, Trichy 2022-23 1
Tamil Nadu Watershed Development Agency,
215 2022-23 1
Chennai
Tamil Nadu Horticulture Development Agency,
216 2020-21, 2021-22, 2022-23 3
Chepauk, Chennai
Tamil Nadu Livestock Development Agency,
217 2022-23 1
Chennai
Tamil Nadu Agriculture State Agricultural Marketing
218 2020-21, 2021-22, 2022-23 3
Board, Guindy, Chennai
Tamil Nadu Compensatory Afforestation Fund
219 Management and Planning Authority (TN CAMPA) 2020-21, 2021-22 2
Tamil Nadu Forest Department
(Source: Information furnished by Head of Departments)

194
 Appendices

Appendix 4.5
(Reference: Paragraph 4.17)
Status of placement of Separate Audit Report (SAR) in the State Legislature
Year upto Period upto Status of Placement
Sl. Name of the
which accounts which SAR of SAR in the
No. body/authority
were received is issued Legislature
SARs upto 1999-2000
Tamil Nadu State Legal was placed. SARs
1. 2021-22 2020-21
Services Authority from 2000-01 onwards
are yet to be placed.
DLSA constituted on
District Legal Services
17.06.2017. SAR from
2. Authority (DLSA), 2021-22 2020-21
2017-18 onwards are
Ariyalur
yet to be placed.
District Legal Services
3. 2021-22 2020-21
Authority, Chennai SARs upto 1999-2000
District Legal Services was placed. SARs
4. 2021-22 2020-21
Authority, Coimbatore from 2000-01 onwards
District Legal Services are yet to be placed.
5. 2021-22 2020-21
Authority, Cuddalore
DLSA constituted on
District Legal Services 17.06.2017. SAR from
6. 2021-22 2020-21
Authority, Dharmapuri 2017-18 onwards are
yet to be placed.
District Legal Services
7. 2021-22 2020-21
Authority, Dindigul
District Legal Services
8. 2021-22 2020-21
Authority, Erode
District Legal Services
9. Authority, 2021-22 2020-21
Kancheepuram
District Legal Services SARs upto 1999-2000
10. 2021-22 2020-21 was placed. SARs
Authority, Kanyakumari
from 2000-01 onwards
District Legal Services are yet to be placed.
11. 2021-22 2020-21
Authority, Karur
District Legal Services
12. 2021-22 2020-21
Authority, Krishnagiri
District Legal Services
13. 2021-22 2020-21
Authority, Madurai
District Legal Services
14. 2021-22 2020-21
Authority, Nagapattinam
DLSA constituted on
District Legal Services 29.03.2002. SAR from
15. 2021-22 2020-21
Authority, Namakkal 2002-03 onwards are
yet to be placed.
District Legal Services
16. 2021-22 2020-21
Authority, Perambalur
District Legal Services
17. 2021-22 2020-21
Authority, Pudukkottai
SARs upto 1999-2000
District Legal Services
was placed. SARs
18. Authority, 2021-22 2020-21
from 2000-01 onwards
Ramanathapuram
are yet to be placed.
District Legal Services
19. 2021-22 2020-21
Authority, Salem
District Legal Services
20. 2021-22 2020-21
Authority, Sivagangai

195
State Finances Audit Report, Tamil Nadu for the year ended March 2023

Year upto Period upto Status of Placement

Sl. Name of the
which accounts which SAR of SAR in the
No. body/authority
were received is issued Legislature
District Legal Services
21. 2021-22 2020-21
Authority, Thanjavur
District Legal Services
22. 2021-22 2020-21
Authority, Nilgiris
District Legal Services DLSA constituted on
Authority, Theni 28.01.2006. SAR from
23. 2021-22 2020-21
2006-07 onwards are
yet to be placed.
District Legal Services DLSA constituted on
Authority, Thiruvallur 03.11.2006. SAR from
24. 2021-22 2020-21
2007-08 onwards are
yet to be placed.
District Legal Services
25. 2021-22 2020-21
Authority, Tiruvarur
District Legal Services SARs upto 1999-2000
26. 2021-22 2020-21
Authority, Thoothukudi was placed. SARs
District Legal Services from 2000-01 onwards
27. 2021-22 2020-21 are yet to be placed.
Authority, Tiruchirapalli
District Legal Services
28. 2021-22 2020-21
Authority, Tirunelveli
District Legal Services DLSA constituted on
Authority, Tiruppur 17.06.2017. SAR from
29. 2021-22 2020-21
2017-18 onwards are
yet to be placed.
District Legal Services
30. Authority, 2021-22 2020-21
Tiruvannamalai
District Legal Services SARs upto 1999-2000
31. 2021-22 2020-21 was placed. SARs
Authority, Vellore
from 2000-01 onwards
District Legal Services are yet to be placed.
32. 2021-22 2020-21
Authority, Villupuram
District Legal Services
33. 2021-22 2020-21
Authority, Virudhunagar
(Details furnished by O/o PAG (Audit-II)

196
 Appendices

Appendix 4.6
(Reference: Paragraph 4.18)
Department/category-wise details of loss to Government
due to theft, shortage and misappropriation
Theft Shortage Misappropriation Total
Sl. Name of the Amount
No. department Number Number Amount Number Amount Number Amount
( in
of cases of cases ( in lakh) of cases ( in lakh) of cases ( in lakh)
lakh)
1 Agriculture 7 9.26 88 187.25 15 221.86 110 418.37
2 Animal Husbandry 4 0.04 1 0.04 1 87.85 6 87.93
3 Higher Education 8 1.08 6 16.29 8 34.81 22 52.18
4 Commercial Tax -- -- -- -- 3 127.68 3 127.68
5 Co-operation 1 0.02 -- -- 1 0.14 2 0.16
6 Election -- -- 1 0.23 -- 1 0.23
7 Elementary Education 1 -- -- -- 1 68.00 2 68.00
8 Energy 1 0.07 -- -- -- -- 1 0.07
9 Finance -- -- -- -- 4 234.11 4 234.11
10 Forest -- -- 2 0.32 -- -- 2 0.32
Health and Family
11 4 2.30 7 6.64 22 166.94 33 175.88
Welfare
12 Highways -- -- 2 16.79 -- -- 2 16.79
13 Home 1 0.96 1 -- 6 22.54 8 23.50
14 Horticulture -- -- 4 9.73 1 1.14 5 10.87
Inspector of
15 1 -- -- -- 1 1.43 2 1.43
factories
Labour and
16 2 1.18 -- -- 4 5.69 6 6.87
Employment
17 Museum -- -- -- -- 1 14.57 1 14.57
18 Public Works -- -- 9 3.46 -- -- 9 3.46
Rural Development
19 -- -- 3 3.13 1 7.16 4 10.29
and Panchayat Raj
20 Revenue -- -- 2 1.27 114 177.04 116 178.31
21 School Education -- -- 1 12.16 4 38.12 5 50.28
22 Sericulture 1 0.05 -- -- 1 1.36 2 1.41
23 Social Welfare -- -- -- -- 5 2.32 5 2.32
24 Transport 1 1.97 -- -- 1 12.80 2 14.77
25 Treasury -- -- 1 4.00 39 1,577.27 40 1,581.27
Total 32 16.93 128 261.31 233 2,802.83 393 3,081.07
(Source: Information furnished by the Heads of Departments)

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Appendix 5.1
(Reference: Paragraph 5.3)
List of Public Sector Undertakings under jurisdiction of Audit in
Tamil Nadu
Finance
1 Tamil Nadu Handloom Development Corporation Limited
2 Tamil Nadu Adi-Dravidar Housing and Development Corporation Limited
3 Tamil Nadu Backward Classes Economic Development Corporation Limited
4 Tamil Nadu Corporation for Development of Women Limited
5 Tamil Nadu Minorities Economic Development Corporation Limited
6 Tamil Nadu Industrial Investment Corporation Limited
7 Tamil Nadu Transport Development Finance Corporation Limited
8 Tamil Nadu Urban Finance and Infrastructure Development Corporation Limited
9 Tamil Nadu Linguistic Minorities Social and Economic Development Corporation
Limited
10 Tamil Nadu Urban Infrastructure Financial Services Limited
Infrastructure
11 Tamil Nadu Rural Housing and Infrastructure Development Corporation Limited
12 Adyar Poonga
13 Tamil Nadu Small Industries Development Corporation Limited

14 Tamil Nadu Infrastructure Fund Management Corporation Limited

15 Tamil Nadu Industrial Development Corporation Limited
16 State Industries Promotion Corporation of Tamil Nadu Limited
17 TIDEL Park Limited
18 Nilakottai Food Park Limited
19 Guindy Industrial Estate Infrastructure Upgradation Company
20 Tamil Nadu Road Infrastructure Development Corporation
21 Tamil Nadu Road Development Company Limited
22 IT Expressway
23 TIDEL Park Coimbatore Limited
24 TICEL Bio Park Limited
25 Tamil Nadu Polymer Industries Park Limited
26 Tamil Nadu Sustainable Industrial Water Corporation Limited
27 Tamil Nadu Police Housing Corporation Limited
28 Chennai Smart City Limited
29 Vellore Smart City Limited

30 Tiruchirappalli Smart City Limited

31 Erode Smart City Limited

198
 Appendices

32 Coimbatore Smart City Limited

33 Salem Smart City Limited

34 Thoothukudi Smart City Limited

35 Thanjavur Smart City Limited

36 Chennai Industrial Water Utility Company Limited

37 Tamil Nadu Water Resources Conservation and Rivers Restoration Corporation Limited
38 CBIC Ponneri Industrial Township Limited
39 Chennai Aerospace Park Limited
40 Tidel Neo Limited
41 Tamil Nadu Industrial Housing Private Limited
42 Tamil Nadu Urban Infrastructure Trustee Company Limited
43 Tamil Nadu State Construction Corporation Limited
Service
44 Tamil Nadu Civil Supplies Corporation
45 Overseas Manpower Corporation Limited
46 Tamil Nadu Skill Development Corporation Limited
47 Tamil Nadu Medical Services Corporation Limited
48 Tamil Nadu Ex-servicemen’s Corporation Limited
49 Tamil Nadu Tourism Development Corporation Limited
50 Poompuhar Shipping Corporation Limited
51
Electronics Corporation of Tamil Nadu Limited
52 Pallavan Transport Consultancy Services Limited
53 Metropolitan Transport Corporation Limited
54 State Express Transport Corporation Limited
55 Tamil Nadu State Transport Corporation (Coimbatore) Limited
56 Tamil Nadu State Transport Corporation (Kumbakonam) Limited
57 Tamil Nadu State Transport Corporation (Salem) Limited
58 Tamil Nadu State Transport Corporation (Villupuram) Limited
59 Tamil Nadu State Transport Corporation (Madurai) Limited
60 Tamil Nadu State Transport Corporation (Tirunelveli) Limited
61 Tamil Nadu Arasu Cable TV Corporation Limited
62 Tamil Nadu FibreNet Corporation Limited
63 Tamil Nadu Internet and Connectivity Services Limited
64 Tamil Nadu State Marketing Corporation Limited
65 Tamil Nadu Working Women’s Hostels Corporation Limited
66 Tamil Nadu Wilderness Experiences Corporation Private Limited
67 Tamil Nadu Centre of Excellence for Advanced Manufacturing
68 Tamil Nadu Startup and Innovation Mission

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

69 Tamil Nadu Smart and Advanced Manufacturing Centre

70 Tamil Nadu Advance Manufacturing Centre of Excellence Private Limited
71 Tamil Nadu Food processing and Agri Export Promotion Corporation
72 Tamil Nadu Coir Business Development Corporation
73 i Tamil Nadu Technology Foundation
74 Tamil Nadu Green Climate Company
75 TN Apex Skill Development Centre for Logistics
76 TN Apex Skill Development Centre for Health Care
77 Tamil Nadu Warehousing Corporation
78 Tamil Nadu Goods Transport Corporation Limited
Power
79 Tamil Nadu Generation and Distribution Corporation Limited
80 Tamil Nadu Transmission Corporation Limited
81 TNEB Limited
82 Tamil Nadu Power Finance and Infrastructure Development Corporation Limited
83 Udangudi Power Corporation Limited
Others
84 Tamil Nadu Fisheries Development Corporation Limited
85 Tamil Nadu Forest Plantation Corporation Limited
86 Tamil Nadu Tea Plantation Corporation Limited
87 Arasu Rubber Corporation Limited
88 Tamil Nadu Small Industries Corporation Limited
89 Tamil Nadu Textiles Corporation Limited
90 Tamil Nadu Zari Limited
91 Tamil Nadu Handicrafts Development Corporation Limited
92 Tamil Nadu Salt Corporation Limited
93 Tamil Nadu Sugar Corporation Limited
94 Perambalur Sugar Mills Limited
95 Tamil Nadu Cements Corporation Limited
96 Tamil Nadu Minerals Limited
97 Tamil Nadu Magnesite Limited
98 Tamil Nadu Industrial Explosives Limited
99 Tamil Nadu Newsprint and Papers Limited
100 Tamil Nadu Medicinal Plant Farms and Herbal Medicine Corporation Limited
101 Namma School Foundation
102 Tamil Nadu Unmanned Aerial Vehicle Corporation

200
 Appendices

Appendix 5.2
(Reference: Paragraph 5.8.2;)
Details of PSUs whose Net worth has eroded as per their latest finalised accounts
( in crore)
Sl Name of SPSE Latest Total Net profit Accumulated Net worth Period State State
year of paid up (+)/Loss (-) losses since Govern- Govern-
No.
finalised capital after when Net ment ment
Accounts Interest, worth Equity as Loans as
tax and on 31 on 31
remained
dividend March March
Negative 2023 2023
1 2 3 4 5 6 7 8 9
1 Tamil Nadu Tea Plantation Corporation Limited 2022-23 14.96 (-) 37.74 (-) 299.00 (-) 278.36 2010-11 14.96 116.05

2 Tamil Nadu Sustainable Industrial Water Corporation 2022-23 0.05 (-) 0.03 (-) 0.62 (-) 0.57 2018-19 0.00 0.00
Limited
3 Tamil Nadu Sugar Corporation Limited 2022-23 218.24 (-) 20.15 (-) 251.29 (-) 33.05 2020-21 217.24 0.00
4 Perambalur Sugar Mills Limited 2022-23 209.10 25.51 (-) 319.61 (-) 110.51 2013-14 0.00 0.00

5 Tamil Nadu Minerals Limited 2022-23 15.74 (-) 4.66 (-) 257.46 (-) 155.29 2018-19 15.74 120.33
6 Tamil Nadu Industrial Explosives Limited Prior 2010 22.14
2022-23 27.03 (-) 12.67 (-) 262.36 (-) 235.33 3.53
7 Pallavan Transport Consultancy Services Limited 2022-23 0.10 0.06 (-) 1.59 (-) 1.49 Prior 2010 0.10 0.00

8 Metropolitan Transport Corporation Limited 2022-23 982.59 (-) 995.56 (-) 8,405.11 (-) 7,422.52 Prior 2010 982.59 284.11

9 State Express Transport Corporation Limited 2022-23 704.02 (-) 379.76 (-) 4,135.77 (-) 3,431.75 Prior 2010 704.02 356.89

10 Tamil Nadu State Transport Corporation (Coimbatore) 2022-23 993.32 (-) 964.53 (-) 8,888.82 (-) 7,895.50 Prior 2010 993.32 311.19
Limited
11 Tamil Nadu State Transport Corporation 2022-23 1,007.82 (-) 775.68 (-) 7,770.22 (-) 6,762.40 Prior 2010 1,007.82 510.83
(Kumbakonam) Limited
12 Tamil Nadu State Transport Corporation (Salem) 2022-23 616.59 (-) 634.21 (-) 5,383.17 (-) 4,766.58 Prior 2010 616.59 601.34
Limited
13 Tamil Nadu State Transport Corporation (Villupuram) Prior 2010 848.54
Limited 2022-23 848.54 (-) 906.30 (-) 7,054.99 (-) 6,206.45 381.12

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

( in crore)
Sl Name of SPSE Latest Total Net profit Accumulated Net worth Period State State
year of paid up (+)/Loss (-) losses since Governm Govern
No.
finalized capital after when Net ent Equity ment
Accounts Interest, worth as on 31 Loans as
tax and March on 31
remained
dividend 2023 March
Negative 2023
14 Tamil Nadu State Transport Corporation (Madurai) 2022-23 814.47 (-) 704.98 (-) 6,207.87 (-) 5,393.40 Prior 2010 814.47 905.28
Limited
15 Tamil Nadu State Transport Corporation (Tirunelveli) 2022-23 903.51 (-) 716.84 (-) 6,710.54 (-) 5,807.03 2010-11 903.51 927.76
Limited
16 Tamil Nadu Arasu Cable TV Corporation Limited 2022-23 25.00 (-) 3.20 (-) 208.95 (-) 183.95 2019-20 25.00 0.00
17 Tamil Nadu State Marketing Corporation Limited 2022-23 15.00 (-) 2.05 (-) 370.40 (-) 354.42 2013-14 15.00 0.00

18 Chennai Industrial Water Utility Company Limited 2022-23 0.05 (-) 0.01 (-) 0.20 (-) 0.15 2020-21 0.00 0.00
19 Tidel Neo Limited 2022-23 0.10 (-) 0.32 (-) 0.49 (-) 0.39 2022-23 0.00 0.00
20 Tamil Nadu Smart and Advanced Manufacturing Centre 2022-23 0.001 (-) 2.19 (-) 2.19 (-) 2.19 2022-23 0.00 0.00
21 Tamil Nadu Food processing and Agri Export 2022-23 0.00 (-) 0.01 (-) 0.01 (-) 0.01 2022-23 0.00 0.00
Promotion Corporation
22 Tamil Nadu Generation and Distribution Corporation 2022-23 20,119.16 (-) 9,192.25 (-) 1,62,507.04 (-) 1,42,387.88 2011-12 0.00 4,558.00
Limited
23 Tamil Nadu Transmission Corporation Limited 2021-22 5,748.07 (-) 655.25 (-) 7,451.84 (-) 1,703.77 2019-20 0.00 20.45
Source: Latest finalised accounts.

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 Appendices

Glossary of terms and abbreviations used in the Report

Terms Description
‘Accounts’ or ‘actuals’ of a year - are the amounts of receipts and
disbursements for the financial year beginning on April 1st and
Accounts or actuals ending on March 31st following, as finally recorded in the
Accounting authority’s books (as audited by C&AG). Provisional
Accounts refers to the unaudited accounts.
‘Administrative approval’ of a scheme, proposal or work - is the
formal acceptance thereof by the competent authority for the
purpose of incurring expenditure. Taken with the provision of
Administrative approval
funds in the budget, it operates as a financial sanction to the work
during that particular year in which the Administrative Approval is
issued.
‘Annual financial statement’ – Also referred to as Budget means
the statement of estimated receipts and expenditure of the
Annual financial statement
Central/State Government for each financial year, laid before the
Parliament /State Legislature.
‘Appropriation’ - means the amount authorized by the
Parliament/State Legislature for expenditure under different
Appropriation
primary unit of appropriation or part thereof placed at the disposal
of a disbursing officer.
Average interest rate is defined as the percentage of interest
payment made to average financial liabilities of the State during the
Average interest rate
year i.e. (sum of opening and closing balances of fiscal liabilities/2)
x 100
Buoyancy ratio indicates the elasticity or degree of responsiveness
of a fiscal variable with respect to a given change in the base
Buoyancy ratio variable. For instance, revenue buoyancy at 0.6 implies that
revenue receipts tend to increase by 0.6 percentage points, if the
GSDP increases by one per cent.
'Charged Expenditure’ - means such expenditure as is not to be
Charged Expenditure submitted to the vote of the Legislature under the provisions of the
Constitution.
‘Consolidated Fund of India/State’ - All revenues of the
Union/State Government, loans raised by it and all moneys
Consolidated Fund of India/ received in repayment of loans form the Consolidated Fund of
State India/ State. No moneys out of this Fund can be appropriated except
in accordance with the law and for the purposes and in the manner
provided in the Constitution.
‘Contingency Fund’ is in the nature of an imprest. The
Contingency Fund is intended to provide advances to the executive
/Government to meet unforeseen expenditure arising in the course
Contingency Fund of a year pending its authorization by the Parliament/State
Legislature. The amounts drawn from the Contingency Fund are
recouped after the Parliament/State Legislature approves it through
the Supplementary Demands.

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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Terms Description
‘Controlling Officer (budget)’ - means an officer entrusted by a
Controlling Officer Department with the responsibility of controlling the incurring of
(Budget) expenditure and/or the collection of revenue. The term includes the
Heads of Department and also the Administrators.
A necessary condition for stability states that if the rate of growth
of the economy exceeds the interest rate or cost of public
borrowings, the debt-GSDP ratio is likely to be stable provided
primary balances are either zero, positive or moderately negative.
Given the rate spread (GSDP growth rate - interest rate) and the
quantum spread (Debt X rate spread), the debt sustainability
Debt stabilisation
condition states that if the quantum spread together with the
primary deficit is zero, the debt-GSDP ratio would be constant or
the debt would stabilise eventually. On the other hand, if the
primary deficit together with the quantum spread turns out to be
negative, the debt-GSDP ratio would be rising. In case it is positive,
the debt-GSDP ratio would eventually be falling.
Debt sustainability is defined as the ability of the State to maintain
a constant debt-GSDP ratio over a period of time and also embodies
the concern about the ability to service its debt. It also refers to the
Debt sustainability
sufficiency of liquid assets to meet current or committed
obligations and the capacity to keep a balance between the costs of
additional borrowings and the returns from such borrowings.
The analysis of expenditure data is disaggregated into development
and non-development expenditure. All expenditure relating to
Revenue Account, Capital Outlay and Loans and Advances is
Development expenditure categorised into Social Services, Economic Services and General
Services. Broadly, the Social and Economic Services constitute
development expenditure, while expenditure on General Services
is treated as non-development expenditure.
‘Drawing and Disbursing Officer’ (DDO) – means a Head of
Office and also any other Officer so designated by the Finance
Drawing and Disbursing Department of the State Government, to draw bills and make
Officer (DDO) payments on behalf of the State Government. The term shall also
include a Head of Department where he himself discharges such
function.
‘Excess Grant’ – Excess grant means the amount of expenditure
over and above the provision allowed through the
Excess Grant original/supplementary grant, that requires regularization by
obtaining excess grant from the Parliament /State Legislature under
Article 115/205 of the Constitution.
GSDP is defined as the total income of the State or the market value
GSDP of goods and services produced using labour and all other factors
of production at current prices.
Defined as the ratio of the debt redemption (principal + interest
Liability of borrowed funds
payments) to total debt receipts and indicates the extent to which

204
 Appendices

Terms Description
the debt receipts are used in debt redemption, indicating the net
availability of borrowed funds.
‘Major Head’ - means a Major Head of account for the purpose of
recording and classifying the receipts and disbursements of the
Major Head State. A Major Head, particularly the one falling within the
Consolidated Fund, generally corresponds to a ‘function’ of
Government such as Agriculture, Education, Health, etc.
‘Major Work’ - means an original work, the estimated cost of
Major Work which exclusive of departmental charges exceeds the amount as
notified by the Government from time to time.
‘Minor Head’ - means a head subordinate to a Major Head or a
Sub-Major Head. A Minor Head subordinate to a Major Head
Minor Head
identifies a “programme” undertaken to achieve the objectives of
the function represented by the Major Head.
‘Minor Work’ - means an original work, the estimated cost of
Minor Work which exclusive of departmental charges does not exceed the
amount as notified by the Government from time to time.
‘Modified Grant or Appropriation’ - means the sum allotted to
Modified Grant or any Sub-Head of Appropriation as it stands after Re-Appropriation
Appropriation or the sanction of an Additional or Supplementary Grant by
competent authority.
‘New Instrument of Service’- means relatively large expenditure
New Instrument of Service
arising out of important expansion of an existing activity.
‘New Service’ – As appearing in Article 115(1)(a)/205(1)(a) of the
Constitution, New Service means expenditure arising out of a new
New Service policy decision, not brought to the notice of Parliament/State
Legislature earlier, including a new activity or a new form of
investment.
Primary expenditure of the State, defined as the total expenditure
Primary expenditure net of the interest payments, indicates the expenditure incurred on
the transactions undertaken during the year.
Primary revenue deficit defined as gap between non-interest
revenue expenditure of the State and its non-debt receipts indicates
Primary revenue deficit
the extent to which the non-debt receipts of the State are able to
meet the primary expenditure incurred under revenue account.
‘Public Accounts’- means the Public Account referred to in Article
266(2) of the Constitution. The receipts and disbursements such as
deposits, reserve funds, remittances, etc. which do not form part of
Public Accounts the Consolidated Fund are included in the Public Account.
Disbursements from the Public Account are not subject to vote by
the Parliament/State Legislature, as they are not moneys issued out
of the Consolidated Fund of India/State.
‘Re-appropriation’ - means the transfer, by a competent authority,
of savings from one unit of appropriation to meet additional
Re-appropriation
expenditure under another unit within the same grant or charged
appropriation.
‘Revised Estimate’ - is an estimate of the probable receipts or
Revised Estimate
expenditure for a financial year, framed in the course of that year,
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State Finances Audit Report, Tamil Nadu for the year ended March 2023

Terms Description
with reference to the transactions already recorded and anticipation
for the remainder of the year in the light of the orders already
issued.
‘Schedule of New Expenditure’ - means a statement of items of
Schedule of New
new expenditure proposed for inclusion in the Budget for the
Expenditure
ensuing year.
‘Sub-Head’ - means a unit of account next subordinate to a Minor
Sub-Head Head which normally denotes the scheme or organisation under
that Minor Head or programme.
‘Sub-Major Head’ - means an intermediate head of account
introduced between a Major Head and the Minor Heads under it,
Sub-Major Head
when the Minor Heads are numerous and can conveniently be
grouped together under such intermediate Head.
Adequacy of incremental non-debt receipts of the State to cover
incremental interest liabilities and incremental primary
Sufficiency of Non-debt
expenditure. Debt sustainability could be significantly facilitated if
receipts
incremental non-debt receipts could meet the incremental interest
burden and the incremental primary expenditure.
‘Supplementary Demands for Grants’- means the statement of
supplementary demands laid before the legislature, showing the
estimated amount of further expenditure necessary in respect of a
financial year over and above the expenditure authorized in the
Annual Financial Statement for that year. The demand for
supplementary may be token, technical or substantive/cash.
a) Cash Supplementary is over and above the original
budget provisions and results in enhancement of the
Supplementary Demands allocation for the Demand/Grant. It should be obtained as
for Grants a last resort and after proper due diligence. Presently, this
method is followed by the State.
b) There are four Sections in each Demand i.e., Revenue
Voted, Revenue Charged, Capital Voted and Capital
Charged. Technical Supplementary, after obtaining the
approval of the State Legislature, allows to utilize the
savings of one of the Sections for any other Section.
c) Token Supplementary allows to utilize the savings
within the same section of the grant.
‘Supplementary or Additional Grant or Appropriation’ -
Supplementary or
means a provision included in an Appropriation Act, during the
Additional Grant or
course of a financial year, to meet expenditure in excess of the
Appropriation
amount previously included in an Appropriation Act for that year.
‘Token demand’- means a demand made to the Assembly for a
nominal or token sum when, for example, it is proposed to meet the
Token demand
entire expenditure on a new service from savings out of the
sanctioned budget grant.

206
 Appendices

Abbreviations Full form

AC Abstract Contingent
AFS Annual Financial Statement
AG (A&E) Accountant General (Accounts & Entitlements)
AGM Annual General Body Meeting
AMRUT Atal Mission for Rejuvenation and Urban Transformation
CAG Comptroller and Auditor General of India
CAS Central Accounting Section
CCO Chief Controlling Officer
CE Capital Expenditure
CF Contingency Fund
CFA Contingency Fund Advance
CGA Controller General of Accounts
CGST Central Goods and Services Tax
CMWSSB Chennai Metropolitan Water Supply and Sewerage Board
CPI Consumer Price Inflation
CSF Consolidated Sinking Fund
CSS Centrally Sponsored Schemes
CTA Commissioner of Treasuries and Accounts
DBT Direct Benefit Transfer
DC Detailed Contingent
DCPS Defined Contributory Pension Scheme
DCRG Death-Cum-Retirement Gratuity
DDO Drawing and Disbursing Officer
DDR Debt, Deposits and Remittances
DIC Directorate of Industries and Commerce
DISCOMs Distribution Companies
DPC Act Duties, Powers and Conditions of Service Act
DPO District Project Officer
DTO District Treasury Officer
DTCP Director of Town and Country Planning
DTO District Treasury Officer
EBIT Earnings Before Interest and Taxes
ECS Electronic Clearance Service
EPC Engineering, Procurement and Construction

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Abbreviations Full form

FC Finance Commission
FD Fiscal Deficit
FMA Final Modified Appropriation
FMG Final Modified Grant
FRBM Fiscal Responsibility and Budget Management
GASAB Government Accounting Standards Advisory Board
GBS Gender Budget Statement
GBC Gender Budget Cell
GCS General Category States
GDC Government Data Centre
GDP Gross Domestic Product
GIA Grants-in-Aid
GoI Government of India
GoTN Government of Tamil Nadu
GPF General Provident Fund
GRF Guarantee Redemption Fund
GSDP Gross State Domestic Product
GST Goods and Service Tax
GVA Gross Value Added
GSVA Gross State Value Added
HoA Head of Account
HoD Head of the Department
IFHRMS Integrated Financial and Human Resources Management System
ICPS Integrated Child Protection Scheme
ICR Interest Coverage Ratio
IGAS Indian Government Accounting Standards
IGST Integrated Goods and Service Tax
JBBRS Jeevan Blood Bank and Research Centre
LIC Life Insurance Corporation
LMMH List of Major and Minor Heads
LPG Liquefied Petroleum Gas
MGNRGE Mahatma Gandhi National Rural Guarantee Employment
MH Major Head
MIS Management Information System
MoI Memorandum of Instructions

208
 Appendices

Abbreviations Full form

MoU Memorandum of Understanding
MTFP Medium Term Fiscal Plan
NABARD National Bank for Agriculture and Rural Development
NPS National Pension Scheme
NDRF National Disaster Response Fund
NSDL National Securities Depositories Limited
NSSF National Small Saving Fund
OBB Off-Budget Borrowings
OD Over Draft
PAC Public Accounts Committee
PAG Principal Accountant General
PAO Pay and Accounts Officer
PD Primary Deficit
PD Account Personal Deposit Account
PEFA Public Expenditure and Financial Accountability
PFMS Public Financial Management System
PFRDA Pension Fund Regulatory and Development Authority
PMAY Pradhan Mantri Awas Yojana
PMGSY Pradhan Mantri Gram Sadak Yojana
PRI Panchayati Raj Institutions
PSE Public Sector Enterprises
PSUs Public Sector Undertakings
RBI Reserve Bank of India
RoCE Return on Capital Employed
RoE Return on Equity
RD Revenue Deficit
RE Revenue Expenditure
RR Revenue Receipts
RUSA Rashtriya Uchhathar Siksha Abhiyan
SAR Separate Audit Report
SDRF State Disaster Response Fund
SDMF State Disaster Mitigation Fund
SFAR State Finance Audit Report
SGST State Goods and Service Tax

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 State Finances Audit Report, Tamil Nadu for the year ended March 2023

Abbreviations Full form

SIA State Implementing Agency
SLR Statutory Liquidity Ratio
SNA Single Nodal Agency
SPMRM Shyama Prasad Mukherji Rurban Mission
SPSE State Public Sector Enterprises
SPV Special Purpose Vehicles
SRLM State Rural Livelihood Mission
SWMA Special Ways and Means Advance
TA Temporary Advance
TANGEDCO Tamil Nadu Generation and Distribution Corporation
TANSIDCO Tamil Nadu Small Industries Development Corporation
TANTRANSCO Tamil Nadu Transmission Corporation Limited
TFC Thirteenth Finance Commission
T.Bills Treasury Bills
TE Total Expenditure
TNEB Tamil Nadu Electricity Board
TNFR Act Tamil Nadu Fiscal Responsibility Act
TNIDB Tamil Nadu Infrastructure Development Board
TNIDF Tamil Nadu Infrastructure Development Fund
TNRSP Tamil Nadu Road Sector Project
UC Utilisation Certificate
UDAY Ujwal Discom Assurance Yojana
ULBs Urban Local Bodies
UT Union Territory
VAT Value Added Tax
VLC Voucher Level Compilation
WMA Ways and Means Advance

210
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