Finally CAG finds major faults in Railways’ accounting systems, budget preparations

New Delhi:  The Comptroller and Auditor General of India (CAG) has found several miscalculations of expenditure and other accounting mistakes while verifying the accounts of Railways.

It has also detected inadequate planning, weak links among policy making, planning and budgeting by Railways. It has also found inadequate relationship between budget as formulated and budget as executed, and many of the accounting and financial workings are mired with poor logic and this needs to be corrected immediately”, the CAG said.  It also observed that many practices were put in place which are quite illogical for an accounting system of an institution of the stature of Indian Railways, right from the Board level to Zonal and Divisional levels and observed that such a practice is highly detrimental to the very purpose of function and structure.  Although many financial austerity measures and accounting reforms have been published by Railway Board from time to time, in practice, nothing is actually practiced in Railways across the Zonal/Divisional/Workshops.  On most of the occasions, the cases are pursued at the whims and fancies of the executive with undue objectives and logics interpreted in expenses to justify the cases and push them further for approvals.

Besides, CAG has observed the non-compliance of Finance Ministry’s suggestions regarding rail budget preparation.