CHAPTER VI: FUNDS, ACCOUNTS AND AUDIT
Section 34: Contributions by Central Government
- Section 34: The Central Government may, after due appropriation made by Parliament by law in this behalf, make in each financial year such contributions to the Central Board as it may think necessary to enable the Board to perform its functions under this Act.
- Simple Explanation: The national government provides funding to the Central Pollution Control Board (CPCB) every year, but this funding must be officially approved (appropriated) by Parliament first.
- Practical Example: The Finance Minister presents the Union Budget, which includes a line item officially earmarking ₹500 crore as a Grant-in-Aid to the CPCB for the year.
Section 35: Contributions by State Government
- Section 35: The State Government may, after due appropriation made by the Legislature of the State by law in this behalf, make in each financial year such contributions to the State Board as it may think necessary to enable that Board to perform its functions under this Act.
- Simple Explanation: Similarly, state governments provide yearly funding to their State Boards (SPCBs), requiring approval from the State Legislature.
- Practical Example: The State Government of Gujarat must get approval from the Gujarat Legislative Assembly for the annual grant it gives to the GPCB (Gujarat Pollution Control Board).
Section 36: Fund of Central Board
- (1) Fund Creation: The Central Board shall have its own fund, which collects all payments from the Central Government and all other receipts (gifts, grants, donations, benefactions, fees or otherwise), and all payments by the Board shall be made therefrom.
- Simple Explanation: The CPCB operates its finances using a dedicated bank account (the “Fund”) where all its income is deposited, and from which all its expenses are paid.
- (2) Fund Usage: The CPCB may expend such sums as it thinks fit for performing its functions under this Act, and, where any law… relating to the prevention, control or abatement of air pollution provides for the performance of any function under such law… also for performing its functions under such law…
- Simple Explanation: The CPCB uses this single fund to pay for both its water pollution duties (under this Act) and its air pollution duties (under the Air Act, as the CPCB handles both).
- Practical Example: The CPCB uses its fund to buy a new water testing spectrometer (Water Act) and also to pay the salary of the chief scientist working on air quality mapping (Air Act).
Section 37: Fund of State Board
- (1) Fund Creation: The State Board shall have its own fund, which collects all payments from the State Government and all other receipts, and all payments by the Board shall be made therefrom.
- Practical Example: All fees collected by the MPCB (Maharashtra) from industries for pollution permits go into the MPCB’s dedicated fund.
- (2) Fund Usage: The State Board may expend such sums as it thinks fit for performing its functions under this Act, and, where any law… relating to the prevention, control or abatement of air pollution provides for the performance of any function under such law… also for performing its functions under such law…
- Simple Explanation: The State Board’s fund is also unified, covering both its water pollution and air pollution duties.
- Practical Example: The State Board pays for the annual maintenance of its regional water testing labs and also pays for the implementation of a city-wide noise pollution study out of the same fund.
Section 37A: Borrowing powers of Board
- Section 37A: A Board may, with the consent of, or in accordance with, the terms of any general or special authority given to it by the Central Government or… the State Government, borrow money from any source by way of loans or issue of bonds, debentures or such other instruments…
- Simple Explanation: Boards have the power to take loans or issue bonds (a way to borrow money from the public) to fund large projects, but they must have permission from their respective government first.
- Practical Example: The State Board needs ₹1,000 crore to fund a massive state-wide sewage treatment infrastructure project. The State Government grants it special authority to issue “Clean Water Bonds” to the public to raise the capital.
Section 38: Budget
- Section 38: The Central Board or… the State Board shall, during each financial year, prepare, in such form and at such time as may be prescribed, a budget in respect of the financial year next ensuing showing the estimated receipt and expenditure, and copies thereof shall be forwarded to the… Government.
- Simple Explanation: Every year, each Board must draft a detailed budget plan for the upcoming year, estimating all the money it expects to receive and all the money it expects to spend, and submit it to its governing body.
- Practical Example: In October, the CPCB drafts its detailed budget showing expected permit fee revenue and planned expenses for technical research for the year starting April 1st, and submits it to the Ministry of Environment.
Section 39: Annual report
- (1) Central Board Report: The CPCB must prepare an annual report giving full account of its activities under this Act, and the Central Government shall cause every such report to be laid before both Houses of Parliament within nine months from the last date of the previous financial year.
- Simple Explanation: The CPCB writes a comprehensive report about what it achieved, what standards were met, and where pollution occurred, and the Central Government must make this public document available for review by all members of Parliament.
- (2) State Board Report: Every State Board shall prepare an annual report on its activities under this Act, and the State Government shall cause every such report to be laid before the State Legislature within nine months from the last date of the previous financial year.
- Practical Example: The State Board’s report is discussed by the State Legislative Assembly, allowing elected representatives to hold the Board accountable for the state’s environmental performance.
Section 40: Accounts and audit
This section ensures financial transparency and accountability for the Boards.
- (1) Accounts: Every Board shall maintain proper accounts and prepare an annual statement of accounts in such form as may be prescribed.
- (2) Auditor: The accounts shall be audited by an auditor duly qualified to act as an auditor of companies.
- (3) Appointment: The auditor shall be appointed by the respective Government on the advice of the Comptroller and Auditor General of India (CAG).
- Practical Example: The CPCB’s accounts are audited by a reputable external firm recommended by the CAG, ensuring the audit is independent and professional.
- (4) Auditor’s Rights: Every auditor shall have the right to demand the production of books, accounts, connected vouchers and other documents and to inspect any of the offices of the Board.
- Practical Example: An auditor visits a regional SPCB office unannounced and demands to see the original paper trails and receipts for all office expenses to verify the digital records.
- (5), (6), (7) Report Laying: The auditor’s report is sent to the respective Government, and the Government must then ensure it is laid before Parliament (for the CPCB) or the State Legislature (for the SPCB).
- Simple Explanation: This finalizes the public accountability loop: the finances are checked by an independent expert, and the results are presented to the nation’s or state’s lawmakers.