The CAG also held former chief minister Virbhadra Singh responsible for using the state helicopter between December 16, 1997 and January 4, 1998 in violation of the Election Commission's instructions, which resulted in an unauthorised expenditure of Rs 50.66 lakh to the state exchequer.

The CAG report, which Chief Minister Prem Kumar Dhumal laid in the state Assembly today, reveals that the state government has outstanding debts of Rs 2902.44 crore as on March 31, 1998.

The CAG has quoted Article 293(3) of the Constitution, which completely debars the state government from raising loans except with prior permission of the Central government. In its two earlier reports also, the CAG had said the state government did not obtain prior permission of the Central government and this amounted to bypassing of the constitutional provisions.

Making a reference to its earlier observations against the government, the CAG said the loans were raised through the Himachal Pradesh State Electricity Board and the HP State Forest Corporation basically to boost the ways and means position. The CAG also cautioned the government against increased interest liabilities, because of heavy borrowings.

The report lists several irregularities in the operation of the deposit heads, implementation of the employment assurance scheme, tribal development sub-plan, opening of a large number of educational institutions and utilisation of funds of the Shimla Municipal Corporation. The MC spent nearly Rs 28.8 lakh against the estimate of Rs 8.38 lakh on renovation of the Commissioner's residence.

Regarding the use of the helicopter, the CAG said the government made an inadmissible payment of Rs 8.87 lakh to a private agency for hiring a helicopter. The CAG also detected anomalies in the reply filed by the government on grounding of the helicopter in October, 1996. The government released payments to the agency despite the fact that the helicopter was grounded due to the fault of the agency itself. Even for the use of alternate helicopters, the payments were made to the agency. A serious lapse, however, was the use of the helicopter by then chief minister though the EC had already banned the use of helicopter at the state's cost.

On other irregularities, the CAG said Rs 86 crore for making payment of the arrears due to increase in wages of daily-wagers were drawn by PWD and IPH departments but the same was deposited in the saving accounts in post offices to earn interest.

The state government could not utilise the funds allotted under the Special Central Assistance most of the years under the tribal sub-plan. The Tribal Development Department delayed the release of SCA funds of Rs 4.11 crore to the implementing agencies by two to 10 months during 1992-97.

Of the scheme funds, Rs 2.16 crore was spent by the Tribal Development Department on hiring helicopter services during 1992-95 for providing airlift to local people of tribal areas and government.

In the Education Department, the CAG pointed out opening of schools in excess without financial approval. In the Police Department, it detected that three additional posts of ADGP had been created and filled between April, 1993 and March, 1998 without prior approval of the Union government.

Seven posts of ASIs, nine of head constables and 86 posts of constables, sanctioned in 1960 for guarding strategic installations, especially important bridges in the border district of Kinnaur, were not deployed for this work.

Thirty-five candidates recruited during 1995-96 by the DIGs of the three ranges were declared medically unfit by the medical board during the second check-up and equipment valued at Rs 11.43 lakh purchased for the forensic science laboratory had not been utilised, according to the CAG report.