Utilisation Certificates of ₹92, 132.75 crore yet to be received by office, says CAG report, 2024-25 in Bihar
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A recent CAG report for 2024-25 reveals that the Bihar government has failed to submit 62,632 Utilization Certificates worth over ₹92,000 crore. The report identifies major departments like Health and Education as primary contributors to this significant financial reporting lapse.
Financial Oversight Crisis: Bihar's Pending Utilization Certificates
On July 23, 2026, the Comptroller and Auditor General (CAG) of India tabled a critical report on the financial reporting practices of the Bihar government. The document, presented to the state assembly by Finance Minister and Deputy Chief Minister Bijendra Prasad Yadav, exposes a massive backlog in administrative accountability: 62,632 Utilization Certificates (UCs) amounting to ₹92,132.75 crore remained unsubmitted to the Principal Accountant General as of March 31, 2025.
Understanding the Role of Utilization Certificates
Utilization Certificates are the bedrock of public financial management in India. They serve as formal proof that funds allocated by the state treasury for specific developmental schemes have been spent for their intended purpose. When these certificates are not submitted, it creates a 'black hole' in the state's fiscal records, making it impossible for auditors to verify whether public money was utilized efficiently, embezzled, or simply left unspent. The scale of this backlog—exceeding ₹92,000 crore—suggests a systemic failure in the internal accounting mechanisms of the Bihar state administration.
Key Departments Under Scrutiny
The CAG report specifically highlights five key departments that bear the brunt of this non-compliance: Health, Rural Development, Urban Development, Education, and Panchayati Raj. These departments are central to the state's social welfare infrastructure. The failure to provide UCs in these sectors is particularly concerning, as it obscures the efficacy of critical public services, ranging from school infrastructure and teacher salaries to rural sanitation and primary healthcare delivery.
Broader Implications for Fiscal Governance
This lack of transparency poses a significant risk to Bihar’s fiscal health. Without settled UCs, the state government faces hurdles in securing further fund releases from both central and state sources, as financial discipline is a prerequisite for continued budgetary support. Furthermore, this delay undermines the legislative oversight process, as lawmakers are unable to assess the actual impact of government spending programs during the monsoon session or throughout the fiscal year.
Future Trends and Accountability
The findings of the 2024-25 CAG report indicate a need for a drastic overhaul of the state's financial reporting workflow. Moving forward, the government will likely face increased pressure from the legislative opposition and regulatory bodies to digitize the tracking of these certificates. If this backlog is not cleared, it may lead to stricter federal scrutiny and potentially a freeze on future project funding, forcing the state to prioritize administrative transparency over bureaucratic delays.
Conclusion
Ultimately, the staggering figure of ₹92,132.75 crore in pending Utilization Certificates is a testament to the challenges of managing large-scale public funds in Bihar. While the report highlights an administrative failure, it also serves as a necessary wake-up call for the state to modernize its internal audit systems to ensure that every rupee of taxpayer money is accounted for with precision and integrity.
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