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Bihar Under Fire Over ₹70,000 Crore Unaccounted Spending: CAG Flags Huge Fiscal Irregularities
Introduction: A Fiscal Hole Too Deep to Ignore
In a revealing audit report for FY 2023–24, the Comptroller and Auditor General (CAG) of India exposed a massive financial anomaly in Bihar—₹70,877.61 crore worth of public funds were disbursed for various schemes and departments, but no utilisation certificates (UCs) were submitted in return.
This lack of documentation means there’s no official confirmation that the money was spent correctly or at all, opening the doors wide to embezzlement, diversion, and misappropriation risks.

Utilisation Certificates: Why They Matter
Utilisation Certificates are not a mere formality—they are legal proofs that funds granted for public expenditure were used for the intended purpose and that the work was completed.
Without them:
- State and central auditors can’t verify outcomes
- Budgets for the next fiscal cycle may be compromised
- Misuse of taxpayer money becomes difficult to detect
The report states that as of March 31, 2024, Bihar had 49,649 pending UCs, some dating back to 2016–17 or earlier. This long-term backlog paints a picture of chronic financial mismanagement.
Departments with the Largest Missing Funds
Here’s a department-wise breakdown of unverified funds:
| Department | Amount Without UC (₹ crore) |
|---|---|
| Panchayati Raj | 28,154.10 |
| Education | 12,623.67 |
| Urban Development | 11,065.50 |
| Rural Development | 7,800.48 |
| Agriculture | 2,107.63 |
| Health | 1,650.00+ (estimated) |
These sectors cover critical public services—education, health, agriculture, and local governance—where fund misuse or underutilisation can have direct consequences on millions.

Spending Gaps: Budget Allocation vs. Actual Use
While the Bihar government had a budget of ₹3.26 lakh crore for 2023–24:
- It actually spent only ₹2.60 lakh crore, or 79.92%
- Savings of ₹65,512 crore were recorded
- But only ₹23,875 crore (36.4%) of those were surrendered officially
This imbalance creates a dual crisis:
- Unspent money that could have driven infrastructure, employment, and rural development.
- Unverified spending, which now risks legal action and audit queries.
Long-Term Trends: Is This New?
Unfortunately, no.
Over the last decade, Bihar has consistently failed to modernize its audit reporting systems. CAG notes similar patterns:
- Unverified expenditures of over ₹40,000 crore in 2020–21
- Audit gaps in sectors like Education, PDS (Public Distribution System), and MNREGA
- No real-time digital tracking of scheme progress
The total fiscal discrepancy across the past 10 years may now approach ₹80,000–₹90,000 crore, according to news reports.

Why This Is a National Concern
Bihar receives substantial central funds under schemes like:
- Sarva Shiksha Abhiyan (schooling)
- PMAY-G (housing)
- NHM (health)
- Mahatma Gandhi NREGA (rural jobs)
Non-submission of UCs affects:
- Future funding quotas
- Trust of central authorities
- Bihar’s credit rating and debt handling ability
The CAG has flagged a “material risk of embezzlement”—a strong term suggesting legal violations, not just procedural lapses.
Political Fallout: Assembly in Uproar
The CAG report triggered chaotic scenes in the Bihar Assembly:
- Opposition parties, including BJP and HAM(S), demanded a probe by the Vigilance Department or CBI
- Leaders asked for resignations from ministers of Panchayati Raj and Education
- CM Nitish Kumar’s government defended itself, citing “delays in clerical procedures” but promised “reconciliation by September 2025”
Public trust is fast eroding, with social media flooded by citizens questioning how funds meant for schools and roads were “lost on paper.”
Expert Voices
This is a failure not just of accounting, but of governance and delivery. It impacts the most vulnerable who depend on government schemes,” — Dr. Anurag Mehta, Economist Pending UCs dating back to 2016 show that the rot is deep. A forensic audit may be the only way to restore public faith,” — Ashwini Mishra, Public Finance Analyst

Solutions on the Table
To fix this, the following are urgently needed:
- Digitisation of UC workflows with dashboard monitoring
- Time-bound UC deadlines linked to future fund release
- Performance audits, not just financial ones
- Grievance redressal systems for local-level misuse complaints
- Department-wise ratings to reward efficiency and transparency
News
IAF Chief AP Singh Flies Advanced US F-15EX Eagle II, Strengthening India-US Defence Ties
Indian Air Force Chief Amar Preet Singh took a significant step toward deepening defence cooperation with the United States by flying the advanced F-15EX Eagle II during his visit to Nevada.
The Air Chief undertook a familiarisation sortie at Nellis Air Force Base on April 9, accompanied by a US Air Force pilot. The flight provided him with first-hand experience of the aircraft’s cutting-edge capabilities and operational strengths in modern warfare.
Strengthening India-US Military Cooperation
During his visit, Air Chief Marshal Singh also held high-level discussions with senior US Air Force officials, including David C Epperson.
Key focus areas included:
- Expanding joint military exercises
- Enhancing operational coordination
- Improving interoperability between the two air forces
These discussions are particularly important for strengthening cooperation in the Indo-Pacific region.
Focus on Technology and Future Warfare
Both sides emphasized:
- Adoption of advanced defence technologies
- Better joint operational strategies
- Continued support for military modernisation
US officials also acknowledged India’s increasing role in regional security and multinational military exercises.
About the F-15EX Eagle II
The F-15EX Eagle II, developed by Boeing, is one of the most advanced fighter aircraft in the US arsenal.
Key features include:
- High-speed, long-range air superiority capabilities
- Ability to carry heavy payloads of advanced weapons
- Modern radar and digital warfare systems
- Versatility for air defence and precision strike missions
News
Kangana Ranaut Criticises Rahul Gandhi Over Parliament Speech on Women’s Reservation
Actor-turned-politician Kangana Ranaut launched a sharp attack on Congress leader Rahul Gandhi following his speech in Parliament on the Women’s Reservation issue.
Reacting strongly, Kangana said that listening to Rahul Gandhi was “a headache” and accused him of trivialising Parliamentary proceedings.
Rahul Gandhi’s Criticism of the Government
During his address in the Lok Sabha, Rahul Gandhi criticised the government’s proposed legislation related to implementing women’s reservation, particularly linking it to the Delimitation process.
He argued that the bill:
- Does not genuinely empower women
- Is instead an attempt to reshape India’s electoral landscape
- Could delay real representation by up to a decade
Concerns Over Caste Census
Rahul Gandhi also claimed that the government is trying to bypass the caste census, which he believes is crucial for fair representation:
- He argued that representation in Parliament and state assemblies should be based on caste data.
- According to him, the current proposal avoids linking reservation to caste demographics.
Allegations Against the Government
Gandhi further accused the ruling government of attempting to:
- “Rejig” India’s political map to retain power
- Follow patterns seen in regions like Jammu & Kashmir and Assam
He warned that such steps could have long-term political consequences.
Opposition’s Stand
As Leader of the Opposition, Rahul Gandhi made it clear that:
- The opposition will resist the current version of the bill
- They are willing to support an immediate implementation of women’s reservation through earlier proposals like the Nari Shakti framework
Political Face-Off Intensifies
The exchange highlights growing tensions between the BJP and Congress over:
- Women’s reservation
- Electoral reforms
- Representation of marginalized communities
News
Modi–Macron Call Focuses on West Asia Crisis and Strait of Hormuz Security
On April 16, 2026, Narendra Modi held a phone conversation with Emmanuel Macron to discuss the ongoing crisis in West Asia and its growing global impact.
According to the Prime Minister’s statement on X, both leaders emphasized the urgent need to restore stability in the region and ensure the safety and freedom of navigation through the Strait of Hormuz, a vital global shipping route.
Why the Strait of Hormuz Matters
The Strait of Hormuz is one of the most critical chokepoints in global trade:
- Around 20% of the world’s oil and LNG supplies pass through it
- It connects the Persian Gulf to international waters
- Any disruption directly impacts global energy prices and supply chains
Recent tensions have led to restricted maritime movement, causing a sharp rise in oil and gas prices worldwide.
Background: West Asia Conflict Escalation
The current crisis began around February 28, 2026, following military strikes involving the United States and Israel on Iran, which triggered retaliatory actions by Tehran. The conflict has now continued for nearly 50 days, affecting multiple countries in the region.
India has consistently called for:
- De-escalation
- Diplomatic dialogue
- Peaceful resolution
This position was reiterated by India’s Ministry of External Affairs during recent briefings.
Modi’s Parallel Talks with the US
Just days earlier, PM Modi also spoke with Donald Trump in a 40-minute phone call—their third interaction this year.
Key discussion points included:
- Security of the Strait of Hormuz
- Ongoing West Asia tensions
- Strengthening India–US strategic ties
The call came shortly after a reported ceasefire involving the US and Iran, though detailed outcomes remain unclear.
India’s Strategic Concerns
India has a high stake in the stability of the region because:
- It imports a large portion of its energy from the Gulf
- Millions of Indian citizens live and work in West Asia
- Trade routes through the Strait are crucial for its economy
External Affairs Minister S. Jaishankar has strongly condemned attacks on commercial shipping, calling them “completely unacceptable.”
Global Implications
The ongoing crisis is already having worldwide consequences:
- Rising oil and gas prices
- Increased geopolitical tensions
- Threats to global shipping and supply chains
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