Centre warns higher officials of stringent action

New Delhi: The Union Ministry of Finance has pulled up states for providing false financial information to the Union government — either deliberately or out of negligence — for borrowing purposes and warned IAS, IPS officers and civil servants on deputation to a state involved in the process of stringent action. In a letter to Chief Secretaries of all states on Thursday, Union Finance Secretary TV Somanathan said some instances had come to light where the relevant information provided to the central government was wrong, even though it had been certified by competent officers in the state government, according to reports.

The letter said providing incorrect information to the central government could be either due to gross negligence or indicates falsification. It added that in one instance, this resulted in over-borrowing by a state during the tenure of one government and led to deduction of that amount during the tenure of the subsequent government, giving way to difficulties for it. The ministry provides permission to states every year to borrow from the open market and other sources under Article 293 of the Constitution. This is done based on the information provided by the state governments.

The borrowing limit is fixed as percentage of the Gross State Domestic Product (GSDP) and this year, it has been fixed at 3.5 per cent of GSDP.

The letter cited All India Services Conduct Rules, such as Rules 3(2B), 3(3) and others, to reiterate that civil servants are responsible to provide "proper and factual advice" and information in a "truthful and correct manner". It said in case the finance ministry finds that a state has provided wrong financial information, the facts and names of the relevant IAS, IPS officers would be communicated to the Department of Personnel and Training (DoPT), which might take action as it deems fit against them on matters concerning their empanelment, central deputation, inter-cadre deputation, foreign training, foreign assignments.

"For this purpose, the officers signing the wrong information and those putting up such wrong information will be taken into account," the communication noted.