Audit scrutiny revealed that the directorate of municipal administration (DMA), released 84.99 crore as grants to GSUDA and 156.76 crore to the 14 municipalities from April 2006 to March 2011.
The report said idling of funds is a consequence of the DMA releasing full amounts for every project in lump sum to the municipalities and GSUDA despite the provisions that the grants has to be released in installments.
The Goa delegation of financial power rules, 2008 provided that grants are to be released either on monthly basis or quarterly basis restricting to 1/12th or ¼th of the budget provision.
These funds deposited in banks by the guarantees earned interest income which instead of being refunded to the government were grabbed as revenue by the municipal accountants and utilized for the general purpose. The CAG report said DMA sanctioned 20.71 crore to GSUDA for 2011-12. Out of this, only 12.65 crore was released after adjusting 8.06 crore from 8.82 crore earned as interest on grants sanctioned during 2006-2011.
Further, out of 2.62 crore earned as interest from grants by 14 municipalities and CCP during 2006-11, only 5.58 lakh was adjusted from the grants sanctioned to one municipal council during 2011-12. The balance interest of 2.56 crore was not adjusted as of August 2012.