Report lauds scheme but finds fault with the government for not identifying deserving beneficiaries in each area

The deficit in local bodies such as Chennai Corporation was widening owing to the increase in expenditure on Amma Canteens.

According to the report of the Comptroller and Auditor General of India on local bodies for the year ended March 31, 2015, the expenditure on Amma Canteens in 2014-2015 crossed Rs.100 crore in Chennai.

While acknowledging that the objective of the scheme was laudable, the CAG pointed to lack of surveys to identify beneficiaries such as wage labourers in each area of the city. The CAG said the food was “provided to all people” at subsidised rates in Amma Canteens. Even as the State government claimed that the scheme was a social welfare measure, the CAG said the reply was not acceptable as the expenditure was incurred without providing funds for such a scheme in the budget passed by the municipal corporations such as Chennai.

Revenue from Amma Canteens in Chennai in 2014-2015 was only Rs.37.56 crore, increasing the deficit to Rs.63.4 crore from Rs.25.05 crore in the previous year.

The deficit of Chennai Corporation increased from Rs.303.1 crore in 2013-2014 to Rs.471 crore in 2014-2015. The total expenditure of Chennai Corporation in 2014-2015 increased to Rs.4,565.39 crore from Rs.3,941.04 crore in 2013-2014.

The percentage of deficit in Amma Canteens to the overall deficit of Chennai Corporation has also increased from 8.26 in 2013-2014 to 13.44 in 2014-2015.

The State government did not issue guidelines or instructions with regard to the financial transactions, such as purchase and sales in Amma Canteens, in the books of accounts of the municipal corporations, the report said.

The municipal corporations could not adopt a uniform accounting procedure in recording transactions pertaining to Amma Canteens. Each municipal corporation adopted a method convenient to it.

The State government has replied to the Comptroller and Auditor General of India that appropriate instructions would be issued to maintain uniformity of accounts.

Expenditure incurred without providing funds in municipal corporation budget, said the report