Once again, the comptroller and Auditor-General of India has pointed out the gross mismanagement of State finance and lack of transparency in Andhra Pradesh. The CAG reports on AP's finances for 2001-02 not only expressed concern over the deteriorating financial health of the State, but also indicted the State government for violating the rules for classifying the expenditure. The CAG noted that, as in the previous years, the government classified the grant-in-aid of Rs 761 crore for local bodies under capital section instead of revenue section of the accounts, in utter violation of the rules made by the President of India. This led to understatement of revenue deficit in the finance accounts. Further, the subsidy of Rs 1,087 crore for the power sector was classified as Plan expenditure. CAG observed that such wrong classification affected transparency of financial data of the government