Over Plans To Change Treasury System, Rajasthan Governor Seeks Explanation

Rajasthan Governor Kalraj Mishra sought a clarification from the Gehlot government on its reported plan to replace the existing treasury system with a pay and account office system, and also expressed displeasure over the formation of commissions and corporations "without following" prescribed rules.

The Governor wrote two separate letters to the chief minister flagging these issues. He also attached a copy of the letter received from the Deputy Comptroller and Auditor General's office on the issue of the pay and account office system.

The governor's missives come in the backdrop of Rajasthan contemplating doing away with the existing treasury system of accounting.

The Comptroller and Auditor General (CAG) has warned the state that the creation of a new mechanism would disrupt the compilation, preparation, and reporting of government accounts in the near term.

In a strongly-worded letter to the Rajasthan government last week, Deputy CAG K R Sriram said, "Any change in the existing scheme as per the Constitution and the Parliamentary enactment in this regard will require prior approval of the President and consultation with the C&AG of India."

A release from the Raj Bhawan said on Thursday, "The Governor has sent a copy of the letter dated February 9, 2023, received from the Deputy Comptroller and Auditor General regarding implementation of Pay and Account Office System in place of the treasury system currently implemented."

Instructions have also been given to inform the intention of the state government after conducting a detailed examination of Article 150 of the Constitution and Section 10 of the DPC of Act 1971, it said.

Article 150 of the Constitution says that the accounts of the Union and of the states shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India, prescribe.

The letter written by the CAG office said that it is "highly desirable" for the state government to re-evaluate the change in the treasury system and hold it till further consultation with the central government".

"Any creation of PAO (Pay and Accounts Office) by one State will derail the time-tested treasury system where huge human and digital resources have evolved along with corresponding treasury rules and with its inherent system of checks and balances and the linkage of entire IT infrastructure...," said the CAG letter, addressed to the Rajasthan chief secretary.

It quoted Constitutional provisions which mandate that the CAG will be responsible for compiling the accounts of each state from the initial and subsidiary accounts rendered to audit and account offices.

In the second letter, also sent to the chief minister on Tuesday, the Rajasthan governor expressed his displeasure with the state government for not following the prescribed rules for the formation of various commissions, corporations, boards, and appointment of office bearers in these institutions. 

The governor also expressed displeasure over the appointment orders issued recently without obtaining approval of the Raj Bhawan.

"In a letter written to Chief Minister Ashok Gehlot, Governor Mishra has given instructions to take it seriously and clarify the situation in the matter," another release from the Raj Bhawan said.

In 2020, as the Gehlot government faced a crisis due to the rebellion by his then-deputy Sachin Pilot, there was a deadlock between the Raj Bhawan and the state government over-calling the assembly session.

The state government wanted to convene the session on a short notice but the governor turned down the cabinet proposal thrice saying a 21-day notice is required for calling the session.

The fourth proposal was accepted by the governor to call the session from August 14, 2020. The revised proposal fulfilled the condition of 21-day notice.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)