Summary:
The Comptroller and Auditor General’s report on local bodies made a shocking revelation on Thursday that the state government’s Gujarat Municipal Finance Board (GMFB) parked funds unethically and earned an interest of Rs 301 crore in five years. The CAG reported that against the total available grant of Rs 31,467.26 crore received between 2012 and 2017, GMFB disbursed Rs 31,441.69 crore to ULBs. The CAG report also said the GMFB sanctioned loans to municipalities (nagarpalikas) in the state without assessing their repaying capacity. “Audit observed that the average establishment and contingent expenditure of GMFB was Rs 4.46 crore whereas the average interest income was Rs 4.52 crore during 2012-17,” the report said. This was the fund that was supposed to be utilised for development of different amenities in urban local bodies (ULBs) in the state..