Sami Ahmad, TwoCircles.net
Patna: A staggering Rs 70,877 crore remains unaccounted for in Bihar’s government spending. The Panchayati Raj Department tops the list, with Rs 28,154 crore in missing Utilisation Certificates (UCs). Following closely is the Education Department, with Rs 12,623 crore unverified. These figures reveal a serious lapse in financial accountability across key public sectors in the state.
These departments are central to the state’s development that oversee important sectors such rural governance, education, infrastructure and agriculture. The failure to submit UCs in these areas raises concerns about transparency, accountability and the proper functioning of public services across Bihar.
A report by the Comptroller and Auditor General’s (CAG) on the financial year 2023-24 made the revelations. It was tabled in the Bihar Assembly on July 24, 2025. Its findings have ignited a political debate, coming months before the state heads into Assembly elections.
As of March 31, 2024, the Bihar government had not submitted 49,649 UCs worth Rs 70,877.61 crore to the office of the Accountant General (Accounts and Entitlements), Bihar. This detail is documented on pages 119-120 of the CAG report.
To put the figure in perspective, Rs 70,877 crore represents more than half of the state’s budget allocated for poverty alleviation. The scale of this unaccounted amount raises serious questions about the fate of funds meant for essential services like schools, hospitals and rural development projects.
UCs are essential as per Rule 271(e) of the Bihar Treasury Code, which mandates their submission within 18 months of a grant being released. These certificates are the only formal proof that government money was used for its intended purpose.
The CAG report goes further on page 121, highlighting that Detailed Contingent (DC) bills amounting to Rs 9,205.76 crore, meant to support 22,130 Abstract Contingent (AC) bills, are also pending. This gap adds another layer to the crisis, exposing vulnerabilities in the state’s financial oversight. Without these documents, there is no clear indication that the funds were spent appropriately.
Altogether, the unaccounted amount comprises about 21.74% of Bihar’s total budget of Rs 3.26 lakh crore for 2023-24. According to the report, only 79.92% of the budget was actually spent. Of the Rs 65,512.05 crore left unused, just Rs 23,875.55 crore (around 36.44%) was formally surrendered. The rest remains in limbo.
The CAG report explicitly warns that the high pendency of UCs increases the risk of embezzlement, misappropriation and diversion of public funds that erode public trust in government institutions.
It also paints a picture of a long-standing pattern of financial mismanagement. Previous reports show UC pendency of Rs 29,399.87 crore in 2015-16, Rs 35,677.41 crore in 2016-17 and Rs 36,593.50 crore in 2017-18.
Experts highlight that such delays have previously cost Bihar valuable central assistance. One earlier report cited a loss of Rs 173.75 crore, highlighting how this chronic issue can strain already limited state resources.
The revelations have triggered a political firestorm, both within Bihar and nationally. The Opposition is calling it a “systemic failure”, placing the blame squarely on the ruling National Democratic Alliance (NDA) and accusing it of institutionalised corruption. Meanwhile, the government claims that the delays are procedural and not indicative of wrongdoing.
Leader of the Opposition Tejashwi Yadav, who is also the deputy chief minister, has called this a “Rs 70,000 crore scam” under the ‘Modi-Nitish’ administration. Equation the situation with the infamous Srijan Scam, once a major flashpoint in Bihar politics, now largely forgotten, he alleged that funds were spent without any visible development outcomes. He insisted that the total amount of unaccounted funds, including the pending DC bills, nears Rs 80,000 crore.
Congress spokesperson Gyan Ranjan Gupta also weighed in, accusing the BJP-JD(U) coalition, the so-called ‘Double Engine’ government in the state, of enriching itself through “commissions and irregularities”.
He cited collapsing bridges, repeated exam paper leaks and crumbling infrastructure as symptoms of governance failures. He called for a thorough audit of the last 18 years, suggesting that an even bigger scam may be buried under the surface.
Meanwhile, Deputy Chief Minister and Finance Minister Samrat Choudhary dismissed the accusations, calling them politically motivated. He stated that this is a routine accounting backlog and not a scam, attributing much of the pendency to the period when Tejashwi Yadav held the finance portfolio under the Grand Alliance government (RJD, JDU, Congress and Left coalition).
He claimed that the current government has made progress, reducing UC pendency from Rs 1.09 lakh crore to its lowest point in five years.
Social media has seen a surge of outrage over the issue. Many users expressed anger that the missing funds could have transformed public services, especially schools and hospitals. Some voices urged caution, demanding a fair investigation rather than a politically driven blame game. There is growing demand for a comprehensive inquiry by the Public Accounts Committee (PAC) to ensure transparency and prevent any cover-up.