NEW DELHI: A constitutional crisis is brewing in Rajasthan with the Congress government led by Prime Minister Ashok Gehlot in the state showing reluctance to share accounts with the Controller and Auditor Generalof the office amid news of the launch of its Payroll and Accounts (PAO) system, eliminating the consolidated treasury system in which the CAG through its general accountant maintains all of a state’s payroll and pension accounts.
According to sources, on February 9, the federal auditor fired a letter to Chief Secretary Usha Sharma protesting the Rajasthan governmentattempt to challenge the constitutional obligation since “Article 150 of the Constitution mandates that the accounts of the Union and the states be kept in such a form as the President may, on the advice of the CAG, prescribe.”
Reminding the Rajasthan government of a well-established treasury system followed by every state since independence, the letter clarified that the CAG is responsible for compiling each state’s accounts from the state treasury. “Any changes to PAO’s current treasury system independently would cause disruptions in the compilation, preparation and reporting of government accounts,” the CDO said.
The letter, sent from the federal auditor’s office, reminded the chief secretary that his general accountant, the head of a state’s CAG office, had first brought the matter to the attention of the state government on June 23 last year. year raising concerns of any switch from the treasury system to the PAO system.
The letter said, “It is understood… that the Government of Rajasthan is considering dispensing with the current treasury system and introducing PAO independently. Earlier, we had pointed out the lack of due process as per DPC Act (Duties) which provides that the CAG is responsible for compiling the accounts of each State from the initial and subsidiary accounts rendered to the audit and accounting offices under its control by treasuries, offices or departments responsible for maintaining these accounts and also for preparing the accounts.
The audit said that any deviation from the established treasury system “requires prior approval from the president and consultation with the CAG.” At present, both Union accounts and state finance accounts require CAG certification before being filed in Parliament and assemblies.
“In view of the above facts, it is highly desirable to re-evaluate the full range of changes in the treasury system and associated activities of accounts in Rajasthan before undertaking such drastic changes and to keep it until further consultation with this office,” the letter he has declared.
The Federal Auditor also reminded the Chief Secretary that “any creation of PAO by a state will derail the time-tested treasury system in which enormous human and digital resources have evolved together with the corresponding rules of the treasury and with its intrinsic system of checks and balances and linking the entire IT infrastructure with PFMS etc. It will also be in violation of the single accounts system of the Treasury and the single nodal agency established by the Government of India”.
According to sources, on February 9, the federal auditor fired a letter to Chief Secretary Usha Sharma protesting the Rajasthan governmentattempt to challenge the constitutional obligation since “Article 150 of the Constitution mandates that the accounts of the Union and the states be kept in such a form as the President may, on the advice of the CAG, prescribe.”
Reminding the Rajasthan government of a well-established treasury system followed by every state since independence, the letter clarified that the CAG is responsible for compiling each state’s accounts from the state treasury. “Any changes to PAO’s current treasury system independently would cause disruptions in the compilation, preparation and reporting of government accounts,” the CDO said.
The letter, sent from the federal auditor’s office, reminded the chief secretary that his general accountant, the head of a state’s CAG office, had first brought the matter to the attention of the state government on June 23 last year. year raising concerns of any switch from the treasury system to the PAO system.
The letter said, “It is understood… that the Government of Rajasthan is considering dispensing with the current treasury system and introducing PAO independently. Earlier, we had pointed out the lack of due process as per DPC Act (Duties) which provides that the CAG is responsible for compiling the accounts of each State from the initial and subsidiary accounts rendered to the audit and accounting offices under its control by treasuries, offices or departments responsible for maintaining these accounts and also for preparing the accounts.
The audit said that any deviation from the established treasury system “requires prior approval from the president and consultation with the CAG.” At present, both Union accounts and state finance accounts require CAG certification before being filed in Parliament and assemblies.
“In view of the above facts, it is highly desirable to re-evaluate the full range of changes in the treasury system and associated activities of accounts in Rajasthan before undertaking such drastic changes and to keep it until further consultation with this office,” the letter he has declared.
The Federal Auditor also reminded the Chief Secretary that “any creation of PAO by a state will derail the time-tested treasury system in which enormous human and digital resources have evolved together with the corresponding rules of the treasury and with its intrinsic system of checks and balances and linking the entire IT infrastructure with PFMS etc. It will also be in violation of the single accounts system of the Treasury and the single nodal agency established by the Government of India”.
