The Comptroller and Auditor General of India (CAG) has sought the cost audit of national highway projects as it feels expenses are rather high. It has said the government should curtail its debt-raising measures.
According to an official in the know, the CAG has raised concerns over the burgeoning costs of the National Highways Authority of India’s (NHAI’s) projects. It has alerted the Ministry of Finance, saying the NHAI’s borrowings are also the government borrowings and should be accounted for accordingly.
Experts are of the opinion that the NHAI’s debt situation is a cause of concern. It is expected to touch Rs 2.5 trillion by the end of the current fiscal year (2019-20 or FY20). The payment outgo on account of interest is expected to be about Rs 25,000 crore annually in the next two decades.
