HC seeks Assam reply on PIL alleging fiscal Act violations

Guwahati: The Gauhati high court has directed the Assam govt to respond to a petition seeking issuance of appropriate directions to the state govt to strictly comply with the provisions of the Assam Fiscal Responsibility and Budget Management Act, (AFRBM Act) 2005 (as amended).

Advocate Reetam Singh filed the PIL alleging persistent and admitted violations of provisions of the AFRBM Act, including failure to limit fiscal deficit to 3% of GSDP, elimination of revenue deficit, prudent debt management and use of borrowings only for productive capital assets and not for revenue expenditure.

A division bench of Chief Justice Ashutosh Kumar and Justice Arun Dev Choudhury was hearing the petition.

The petitioner said the plea is supported by successive adverse observations made by the Comptroller and Auditor General (CAG) of India in its State Finances Audit Reports for 2020-21 to 2022-23 and Report No 2 of 2024, “which reveal massive non-submission of Utilisation Certificates (Rs 37,991.70 crore outstanding as on March 31, 2023), misclassification of expenditures, cosmetic accounting practices, underutilization of funds and serious departmental irregularities indicating potential misappropriation, favouritism and corruption.”

Singh also alleged that escalating public debt infringes upon the fundamental rights of citizens under Articles 14, 19 and 21 of the Constitution and violates constitutional mandates under Articles 202, 266 and 293.

The petitioner sought directions for “strict enforcement of the AFRBM Act, time-bound forensic audit by the CAG, constitution of an Expert Committee and other consequential reliefs to restore fiscal discipline, transparency and accountability in the management of public finances and to protect the economic rights of the people of Assam.”

Senior advocate KN Choudhury appeared for the petitioner.

The court fixed Sept 16 for hearing the matter.