Not enough taxes levied, says CAG

Feb 05, 2012 |

Chennai & Kochi

The state government has failed to implement a majority of accepted recommendations of the Third State Finance Commission (TSFC) as on November 2010 and thus defeated the Commission’s objective, the Comptroller and Auditor General (CAG) of India said in its report on the performance of local bodies in Tamil Nadu for the year ending March 31, 2010.

Though a high level committee under the chairmanship of then chief secretary was formed in May 2007, it did not meet even once to monitor the implementation of Commission’s recommendations.

The report said urban local bodies did not levy minimum property tax between 2007 – 10 due to lack of orders from government resulting in revenue loss of Rs 86.94 lakh. It also faulted the Chennai corporation and several municipalities for invoking revenue losses.

A review of Panchayat Raj Institutions (PRI) revealed that the expenditure was more than the receipts from 2007 – 10.

The revenue of the registration department decreased by three percent from the previous year.

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