No Record Of Government Expenses Of Rs 92,133 Crore in Bihar As Per CAG; Opposition Sees Red
The humongous amount came to light on Thursday as the Comptroller and Auditor General (CAG) submitted its accounts report on state finances to the government.
By Dev Raj
Published : February 26, 2026 at 7:57 PM IST
Patna: Bihar is staring into big trouble due to pending or missing utilisation certificates (UCs) worth Rs 92,133 crore as of March 31, 2025. This has raised the spectre of fund diversion, misappropriation, and scams in the state, providing the much-needed ammunition for the weak Opposition to attack the Chief Minister Nitish Kumar-led National Democratic Alliance (NDA) government.
The humongous amount came to light on Thursday as the Comptroller and Auditor General (CAG) submitted its accounts report on state finances to the government.
"A total of 62,632 UCs worth Rs 92,133 crore were pending as of March 31, 2025. There were 49,469 pending UCs worth Rs 70,878 crore in the state as of March 31, 2024," the CAG accounts report on state finances noted.
The UCs are mandatory documents submitted by grantee institutions to certify that government grants-in-aid were used for their intended purpose, as required under General Financial Rules. The CAG frequently flags huge arrears in UCs, indicating that billions in funds lack proof of actual utilisation, raising risks of misappropriation, diversion, or fraud.
The general financial rules stipulate that wherever grants-in-aid are given for specific purposes, the departmental officers concerned should obtain the UCs. Outstanding UCs indicate a lack of financial accountability, where money may have been either spent without proper documentation or not spent at all, despite being drawn from the treasury. Their non-submission is considered a gross violation of financial propriety.
According to the CAG, the non-submission of UCs violates Rule 271(e) of the Bihar Treasury Code, which requires departments to submit the documents within 18 months of the financial year in which the grant is released.
"We have submitted the finance accounts to the Bihar government to highlight its condition and shortcomings, and to indicate the areas where swift action is needed. The CAG will audit these accounts and submit the ‘audit report’ later this year," a senior officer in the office of the Bihar Principal Accountant General told ETV Bharat.
Incidentally, based on the CAG audit report released in July 2025, the Opposition alleged a scam of Rs 70,000 crore and targeted the Nitish government during the run-up to the Assembly elections held in November last year.
With the amount of pending UCs skyrocketing further to Rs 92,133 crore, the Rashtriya Janata Dal (RJD) slammed the state government for neglecting development and financial propriety, and for allowing a free run to scamsters.
"What is happening in Bihar? Non-submission of UCs means that public money is being spent only on establishment costs and not on development or welfare projects. It means that actual development is not happening in the state despite the government's tall claims," Bihar RJD general secretary and spokesperson Chitranjan Gagan told ETV Bharat.
"The state government should clarify why this situation is prevailing and worsening in Bihar. Has it paved the way for scamsters? The Rs 1000 crore Srijan scam that surfaced in 2017-18 was similar to this," Gagan added.
The RJD leader demanded a white paper from the state government on the issue and asserted that the people have the right to know about the condition of the state's finances.
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