Bihar Government has been crying foul for lack of funds for development but the recent CAG reports indicate that the state failed to spend Rs 15,595.72 crores during Financial year 2011-12.
According to the CAG report tabled in Bihar Assembly, following departments reported very low utilization of their allotted  funds for development:  Education Department (Rs 2,258 crores), Panchyati Raj Department (Rs. 1,120 crores), Energy Department (Rs 871 crores), Urban Development and Housing Department (Rs 713 crores) and Health Department (Rs 528 crores).
Most of these departments have failed to provide a suitable reason for low utilization of the funds. The State Building Construction Department tops the list of under-utlilzation of funds, by surrendering almost 63% of its provisioned funds.
The CAG Report also highlights several inadequacies in the State;’s Financials. It says that the State Government lacks objective planning for utilisation of funds drawn on Abstract Contingency (AC) bills.
The Government had withdrawn Rs 16,033.01 crore on AC bills between 2009-12 of which the plan head drawals accounted for Rs 12,332.64 crore, which indicated that object level planning was absent as items of expenditure were known while drawing the amount.
The money was simply drawn through the AC bill mode under plan heads for future use awaiting finalization of implementation modalities to avoid lapse of appropriations, it said.
CAG also pointed out that no expenditure was incurred against AC drawals of Rs 171.64 crore meant for upgradation of primary health centres (PHCs) and sub-divisional hospitals during 2009-11 and was provided to Bihar Medical Services and Infrastructure Corporation Ltd (BMSIC) and the entire amount remained un-utilised till August 2012.