The Comptroller and Auditor General on Friday pulled up the previous NDA government for diversion of funds and incurring unauthorised expenditure of Rs 63.23 crore (Rs 632.3 billion) for the 'India Shining' media campaign.
"The ministry of finance did not obtain approval of Parliament before incurring an expenditure of Rs 63.23 crore on the media campaign," CAG said in its report tabled in Parliament on Friday.
"The action of the ministry in not obtaining prior approval of Parliament before incurring expenditure on the activity, which was a new service or instrument of service, was unauthorised," it said.
The ministry incurred the expenditure through diversion of funds although this activity was not contemplated in the annual budget, CAG said while tracing the expenditure.
An expenditure of Rs 63.23 crore was incurred by re-appropriating Rs 68 crore (Rs 680 million) from the sub-head 'Cooperation with other countries' to a sub-head 'other expenditure' under Major Head 3605 in Demand No. 31 - Department of Economic Affairs for 2003-04, CAG said.
However, the finance ministry said it had mentioned about the expenditure while presenting the demand and treated it as a provision for supporting an overall, general and imaginative promotion of India, its trade and foster techno-economic and intellectual progress with other countries. Hence, it was not treated as a new service.
The CAG said the ministry's reply was not 'tenable' in view of the constitutional requirements regarding appropriation.
Moreover, the nature and purpose of the campaign did not fit under this major head, which covered various promotional activities in relation to ties with other countries, it said.
The finance ministry, in September 2002, had mooted a proposal for launching a media campaign for highlighting the benefits of economic reforms.
In September 2003, an empowered sub-group, set up under the chairmanship of chief economic advisor, for implementation of the publicity programme decided that a full-fledged media campaign be launched and the expenditure met with sponsorship from various stakeholders in the reforms -- banks, financial institutions and corporate world.
Campaign material of two advertisement agencies styled as 'India Shining' was approved in October 2003 for release to various newspapers and TV channels in three phases during October 2003, December 2003-January 2004 and from February 2004 till the model code of conduct of Parliamentary elections came into effect, the CAG report said.
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