NEW DELHI: A constitutional crisis is brewing in Rajasthan with the chief minister Ashok Gehlot-led Congress government in the state showing unwillingness in sharing accounts with the Comptroller and Auditor Generals office amidst reports of launching its own Pay and Accounts System (PAO), doing away with the recognized treasury system in which the CAG through its accountant basic preserves all pay and pension accounts of a state.According to sources, the federal auditor shot a missive to chief secretary Usha Sharma on February 9 protesting the Rajasthan governments effort to challenge the constitutional commitment considering that Article 150 of the Constitution requireds that the accounts of the Union and of the states will be kept in such type as the President may, on advice of the CAG, prescribe.

Reminding the Rajasthan government of a reputable treasury system followed by every state since Independence, the letter clarified that the CAG is responsible for putting together the accounts of each state from state treasury.

Any change in the current system of treasury to the PAO individually would trigger disturbance in collection, preparation and reporting of federal government accounts, the CAG has said.The letter, shot from the head office of the federal auditor, has actually advised the chief secretary that its accountant basic, the head of the CAGs workplace in a state, had very first brought this problem to the notification of the state federal government on June 23 last year raising issues of any change from the treasury system to the PAO system.The letter stated: It is found out ...

that the federal government of Rajasthan is pondering to dispense with the existing treasury system and present PAO independently.

Previously, we had actually pointed out the absence of due procedure as per the CAGs DPC Act (Duties, Powers and Conditions of Service Act).

In reiteration of the same we would like to bring to your notification the following constitutional and statutory arrangements: ...

The DPC Act offers under section 10 for compilation of accounts of the Union and states by the CAG which mandates that the CAG shall be responsible for putting together the accounts of each state from the preliminary and subsidiary accounts rendered to investigate and account workplaces under his control by treasuries, offices or departments responsible for keeping of such accounts and likewise for preparation of accounts.

The audit said that any departure from the established treasury system will need previous approval of the President and assessment with the CAG .

At present, both the Union accounts and the state finance accounts require certification from the CAG before they are tabled in Parliament and assemblies.

In light of the above truths, it is extremely desirable to re-evaluate this whole range of change in the treasury system and associated activities of accounts in Rajasthan prior to starting such drastic modifications and hold it till additional assessment with this office, the letter has stated.The federal auditor has further advised the chief secretary that any creation of PAO by one state will derail the time tested treasury system where substantial human and digital resources have progressed in addition to matching treasure rules and with its intrinsic system of checks and balances and the linkage of whole IT facilities with PFMS etc.

It will likewise remain in breach with the Treasury Single Accounts and Single Nodal Agency system set by the Government of India .