New Delhi: The Comptroller and Auditor General (CAG) of India has flagged that 33,973 Utilisation Certificates (UCs) amounting to Rs 54,282.32 crores were outstanding from 15 Union government ministries or departments, in violation of the rules that govern public finances which require submitting such utilisation certificates, thus raising serious concerns about whether the funds have been utilised for their intended purpose.The CAG’s financial audit report of the Union ministry of finance titled Report of the Comptroller and Auditor General of India on Accounts of the Union Government for the year 2024-2025, tabled in parliament in April has noted that from the information furnished by 15 departments/ministries, 33,973 UCs aggregating to Rs 54,282.32 crore were outstanding as on March 31, 2025. Of this, the report said, 13,926 UCs amounting to Rs 38,287.52 crore pertains to the last three years (FY 2021-22 to FY 2023-24) while the earliest period of the grants sanctioned for which the UCs were outstanding goes back to the FY 1985-86. “This violated provisions of rule 238 (1) & (2) of GFR 2017,” the report said.Rule 238(1) and (2) of the General Financial Rules, 2017, provide that for non-recurring grants to institutions or organisations, a certificate of actual utilisation of the Grants received for the purpose for which it was sanctioned should be insisted upon in the order sanctioning the Grants-in-aid. These UCs are required to be submitted within 12 months after the close of the financial year, and if not received in this period, the ministry or department may blacklist the institution or organisation from receiving future grants, subsidies, or other forms of financial support from the government. The report said that 13,926 of the 33,973 UCs that were not received, pertained to the last three years (2021-22 to 2023-24). However, the earliest grants for which UCs remained outstanding date back to FY 1985-86. CAG report shows the ministry-wise breakdown of unaccounted spending.“This indicates that the Departments/Ministries were not adequately addressing the issues of outstanding UCs,” the report said. “Since the receipt of UCs is the only mechanism to confirm that funds have been utilised for their intended purpose, the Departments should establish a robust system to ensure the timely submission of UCs by grantee bodies.”The report shows that the highest amounts were incurred by the Ministry of Housing and Urban Affairs that did not provide UCs amounting to Rs 18,272.91 cr and the Department of Higher Education that did not provide UCs for Rs 14,359.76 cr.The 15 ministries and departments that did not provide UCs include – the Department of Agriculture and Farmers Welfare, Ministry of AYUSH, Department of Pharmaceuticals, Ministry of Culture, Department of School Education and Literacy, Department of Higher Education, Department of Revenue, Department of Health and Family Welfare, Ministry of Housing and Urban Affairs, Ministry of Planning, Ministry of Shipping, Ports and Waterways, Ministry of Road Transport and Highways, Department of Social Justice and Empowerment, Ministry of Tribal Affairs and Ministry of Women and Child Development.The report said that of these departments and ministries, the Ministry of Road Transport and Highways, Ministry of Planning, Department of Health and Family Welfare and the Ministry of Shipping, Ports and Waterways had in reply said to the CAG that the matter had been taken up with the Programme Division / Implementing agencies to minimise pendency. The Ministry of Education had in its reply said that an IT system had been developed to monitor all data relating to utilisation certificates. The Ministry of Culture, Department of Pharmaceuticals, Ministry of Ayush, Ministry of Tribal Affairs and Ministry of Women and Child Development said that continuous efforts were being made to reduce pendency. The report said that no responses were received from the remaining ministries.