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CAG report prompts Bihar to act: payments only after proper accounting

The report reveals that grants worth ₹14,452 crore from as far back as 2016–17 have incomplete accounting. The situation has further deteriorated between 2019 and 2023.

Patna

Patrika Desk

Jul 31, 2025

CAG report on Bihar

Bihar CAG Report Row: The CAG report is currently causing a stir in Bihar's politics. The latest report from the Comptroller and Auditor General (CAG) of India has exposed the financial state of Bihar. According to the report, the Bihar government spent ₹70,877.61 crore by 31 March 2024, but there is no accounting of how and where this money was used. A total of 49,649 Utilisation Certificates (UCs) have not been submitted. The Bihar government has now taken strict action, issuing an order that departments will not receive any further funds until they submit their previous accounts.

Payment Halted for Three Major Departments

In this regard, funding has been stopped for major departments such as Panchayati Raj, Urban Development, and Education. These departments have been instructed to submit UCs to the CAG before receiving further funds from the treasury.

Bihar Government Did Not Adhere to Accounting Standards

The CAG report clearly states that the Bihar government did not adhere to the accounting standards set by the central government. According to rule 271(e) of the Treasury Code, it is mandatory to submit UCs within 18 months, but the government has neglected this for years. The report indicates that the accounts for grants up to 2016-17 alone are incomplete to the tune of ₹14,452 crore. The situation worsened from 2019 to 2023.

Tejashwi Alleges ₹70,000 Crore Scam by Modi-Nitish Duo

Political accusations have begun following this controversy. Leader of the Opposition, Tejashwi Yadav, stated on social media that the Modi-Nitish duo has committed a scam of ₹70,000 crore. He claims this is even bigger than the ‘Srijan scam’. No work is visible, yet the money has vanished. The CAG states that until UCs are received, it cannot be proven that the money was spent appropriately.

‘Account Details Before Payment’ Rule Implemented

The finance department has issued instructions to all concerned departments to submit UCs immediately. The Bihar government is now on the defensive and has implemented a rule of ‘account details before any new payment’.