Assam's Investment Conundrum: Unsettled SPSE Accounts Costing Crores

The Assam government invested Rs 1,970 crore in SPSEs with pending accounts up to 16 years, as per a CAG report. The report suggests halting further funding to those not clearing accounts and recommends a Finance department cell for oversight. It warns of risks like fraud without account audits.

A recent CAG report highlights that the Assam government invested over Rs 1,970 crore in State Public Sector Enterprises (SPSEs), which have accounts pending for one to 16 years till 2022-23. This raises concerns over financial management within the state's public sector.

The report suggests the Assam government should refrain from providing further funds to SPSEs with unsettled accounts. In 2023, the government invested Rs 1,976.37 crore across 19 SPSEs that had arrears. Nine of these SPSEs received Rs 1,939.60 crore, accounting for over 98% of the funds.

Persistent delays in account finalization pose risks like fraud, as seen in Assam Hills Small Industries Development Corporation Ltd, with arrears spanning 16 years. The CAG advises establishing a special finance cell for oversight and possibly outsourcing account preparation. Until accounts are current, further financial aid may be withheld.

(With inputs from agencies.)