How to rob a country and not get caught?

A tried and tested formula for “How to rob a country in 4 steps”?

  • Announce big and ambitious schemes
  • Set up paper work to support the schemes
  • Allocate the budget and release the funds
  • Do not inform the end beneficiaries about these schemes or how this would benefit them

Since no monitoring, evaluating procedures in place there is no way anyone is ever going to know if and when the funds get misused and since the government has to show some intent and accountability, it will conduct a CAG audit report so to cover its bases. By the time the CAG report is published, one of two things will happen – either the govt responsible for this program is not in power or sometimes the people who implemented, they themselves are no longer alive.


Rashtriya Kisan Vikas Yojana (RKVY) was launched in the 11th Five Year plan to act as a catalyst in incentivizing the states so that 4% annual growth in the agriculture can be achieved. A total of 32,460.45 crore was allocated between 2007-08 to 2012-13 and an amount of Rs 30,873.38 crore was released to 28 states and 7 Union territories.

An audit was performed to assess whether

  • the implementation of RKVY by states was in accordance with the guidelines
  • the ministry discharged its role in administering the scheme effectively at the national level

The important findings of the performance audit are

Planning Management

1) Planning process: Of the 27 states, the planning process was found to be deficient in 24 states in various aspects such as non-involvement/participation of the grassroot level agencies like Gram Panchayat/Gram Sabhas/Block Agriculture planning unit/Village Agriculture planning unit

2) In 5 states, 143 projects with approved cost of Rs 1962.69 crores were included in State Agriculture Plan (SAP) without including in the District Agriculture Plan

3) Deficiencies pointed out by the ministry for 73 project proposals of 9 states costing Rs367.99 crores and the projects were sanctioned without addressing the deficiencies.

4) 10 projects costing Rs 64.40 crores in 4 states were not linked to Agriculture but they received funds under RKVY

Financial Management

1) Total allocated Rs 31732.06 crores, Total released Rs 30494.50 crores and Total expenditure incurred: Rs 27938.52 crores

2) An excess receipt of grant of Rs 4289.20 crores was reported by the states when the actual numbers were compared

3) In 12 states, incorrect utilization certificates by the nodal department/agency to the minsitry and implementing departments were found

4) In 12 states, the allocation for agriculture and allied sectors did not increase in proportion to the total allocation during

5) In 20 states, the funds were released by states with delay ranging from 23 to 34 months.

6) In 7 states Rs 106.13 crores was incurred in excess of sanction without any approvals

7)  Grants of Rs 759.03 crore were found parked in Personal Ledger Accounts/Savings accounts in 11 states

Monitoring and Evaluation

1) Shortfalls of more than 50% and upto 70% was noticed in 16 states. Shortfall of more than 70% was noticed in 4 states

2) In 15 states, data discrepancies were found.

As part of the audit recommendations, CAG recommended that an annual reconciliation of expenditure figures must be done as part of a key internal control exercise.

The original report:


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