KARACHI, Oct 15: The Directorate General, Audit and Evaluation (South), Revenue Receipts, Karachi, made cash recoveries to the tune of Rs1.289 billion at the instance of audit during the financial year 2001-2002.

The Directorate General, during the year, carried out revenue audit of Rs168 billion and pointed out Rs40 billion as recoverable.

This was stated by director general, audit and evaluation (south), revenue receipts, Karachi, Zulfikar Ali Kadri at the inaugural session of 13th post-budget (2002-03) workshop held by the Director General, Revenue Receipts Audit (South), Karachi, here on Monday,

He further said that cash recoveries of Rs1.289 billion were effected at the instance of audit at a cost of Rs12.94 million only by this Directorate General i.e. 100 times more than the cost of audit. Thus, for each recovery of Rs100 the audit cost is just one rupee, he added.

Besides, the regular revenue auditing directorate general had been undertaking special studies, including performance audit of the executive in different areas. During the year 2001- 2002 the department conducted five special studies and pointed out an amount of Rs15.316 billion as recoverable.

The most important subject study this directorate general carried out recently, Zulfikar Ali Kadri said, was “ascertainment and certification of net proceeds of divisible taxes” which pointed out different financial irregularities.

The defects in system of collection, accounting for and credit in the government treasuries of the different federal taxes and duties were pointed out. For the second time, Net Proceeds of Divisible Taxes have also been certified for distribution among the provinces, he added.

In developing countries like Pakistan, he said there is always a wide gap between needs and resources because they need to undertake larger development activities in socio- economic fields. The requirements of development expenditure are massive but the level of public savings is limited, he observed.

Consequently, Zulfikar Ali Kadri said rising volume of public debt and deficit financing have made revenue auditing an important subject. Rising volume of public debt and deficit financing have made revenue auditing an important subject.

The revenue collection and auditing, he said, had become even more critical in the present scenario where the chances of financial assistance from IMF and other international donors are becoming less and less everyday.

Deputy Auditor General, Revenue Receipts Audit, Rukhsana Jabbar Memon also highlighted the role of revenue auditing as it helps to check leakages which could be spent for socio- economic development and other needs of the country.

Deputy Auditor General Senior Chaudhry Mohammad Ilyas inaugurated the two days post-budget workshop as Auditor- General of Pakistan, Muhammad Yunis Khan who was to be chief guest could not attend because of his busy schedule in Islamabad.