The CAG in its report for the year ended March 31, 1998, tabled in the state assembly today, stated that the revenue receipts of the state government during 1997-98 was Rs 10,613.3 crore, which marked an increase of Rs 991.21 crore over the previous year.

It flayed the government for its "failure" to revise water collection rates fixed in July 1985 in the Cauvery basin medium and major irrigation projects despite recommendations by successive finance commission that the revenue should at least match the maintenance cost.

The revenue from water rate and maintenance cess fell short of maintenance expenditure by Rs 48.09 crore during the period 1992-93 to 1996-97, it noted.

There was a short levy and non-levy of penal water rate by Rs 324.20lakh for the years 1993 to 1997 in four sub-divisions of two districts, it said and pointed out that for water supplied during the period January 1974 to July 1997 for non-agricultural use, Rs 480.86 lakh was due from seven bodies.

CAG pulled up the government for failure to recover clinical fee of Rs 584.38 lakh from four private medical colleges which were allowed to utilise clinical facilities in government hospitals during the period 1987-88 and 1997-98.

Though these colleges have paid Rs 286.95 lakh up to March 1997 had been kept outside the government account, these colleges were allowed the continued use of facilities.

It noted that Rs 530.91 lakh was due from ESI Corporation towards reimbursement of expenditure for the years 1995-96 and 1996-97. The CAG also pointed out that there was short levy of sales tax by Rs 260.54 lakh in 50 cases due to application of incorrect rates of tax while finalising the assessments and due to granting of incorrect exemption and concession there was non-levy andshort levy of sales tax of Rs 234.93 lakh in 75 cases for the period 1988-89 to 1995-96.

Penalty of Rs 186.60 lakh for delayed payments of tax excess collection of tax had not been levied under the sales tax laws in 28 cases, it noted.

Incorrect classification of contract carriages as private service vehicles resulted in short levy of motor vehicles tax of Rs 83.47 lakh on 26 buses for the period April 1994 to June 1998.

The CAG said there was short levy of agricultural income tax of Rs 51.98 lakh in three cases relating to 1994-95 and 1995-96.