The projected financial bottomlines of the Games have already been revised thrice even before the revenues are yet to trickle in. Due to this, the financial management skills of the organizing committee have come under the scanner of the CAG, a senior official in the sports ministry said.
As per the bid documents of December 2003, the projected revenue was estimated to be Rs 840 crore and the operating expenditure was projected at Rs 635 crore, resulting in savings of Rs 205 crore.
However, in August 2007, the organizing committee increased its income by Rs 60 crore while it hiked its expenditure by Rs 132 crore, thus reducing savings figure to Rs 133.
A year later, surprisingly, the committee again revised its projected accounts where estimated surplus came to zero - no profit, no loss with the total revenue reaching Rs 1,780 crore and total estimated expenditure also showing Rs 1,780 crore.
Despite this, the organising committee - whose chairman Suresh Kalmadi is the Indian Olympic Association (IOA) president and its secretary the Athletics Federation of India (AFI) president - failed to convince auditors on the avenues of revenue generation.
In this whole process, the committee has made a provision for payment of 5% of sponsorship revenue to the IOA, which CAG has objected to and recommended that if at all anything should go to the IOA, it should be considered only out of the cash revenue surplus of the Games.
The auditors have also stressed on the need for greater and effective monitoring of the actual use of funds given the multiplicity of agencies involved in executing the project.