The Goa government was pulled up by the CAG for lack of performance on the part of cooperative banks and cooperative societies.
According to the report, the govt has borrowed money on high interest while its investment on various cooperatives has yielded returns much less than expected.
The govt has paid interest of nearly 8 percent on borrowings over the last five years and returns on investments during the same span have not been even one percent.
The government has invested a total amount of Rs 5 crore on the cooperative banks and cooperative societies with little return.
The CAG report argues there is a lack of fiscal discipline and this needs to be acquired. The report adds funds for various state agencies be routed through the state budget or state treasury system as the present system of transferring funds directly to state organisations makes a proper accounting of funds impossible.
The CAG report has also hinted at the possibility of funds being misused as funds are not given through the state budget.
Sources say in view of the report being critical of the manner in which the govt allocates funds, the govt would be under pressure to shed a skewed sense of priorities and show financial discipline.
