Shimla 14 Sept, 2020
*Fiscal liabilities mounts Rs 54,299 cr & grows by 6.41 per cent
Comptroller and Auditor General (CAG) of India stated in its report released on Monday has pointed our that the state has not yet amended the Fiscal Responsibility Management Bill Act as recommended by the 14th Finance Commission.
It said that the state’s fiscal liabilities mounted to Rs 54, 299 crore in financial year 2018-19 which recorded growth of 6.41 per cent over the previous year. Fiscal liabilities were 36 per cent of the Gross State Domestic Product.
Chief Minister Jai Ram Thakur who has the portfolio of Finance laid the CAG report in the state assembly, which stated that total public debt increased from Rs 25,729 crore in 2014-15 to Rs 36,425 cr in 2018-19 registering annual average growth rate of 9.60 per cent. The share of market borrowing in total public debt went up from 59 per cent of year 2014-15 to 65 per cent in 2018-19. During the current year (2018-19) total debt increased by the five percent over the previous year.
Report said that in next ten years out of total outstanding market loans and UDAY bonds of Rs 25,573 cr till date has to repay principal of market loans and UDAY bonds of Rs 25,005 cr (94.10 per cent) and interest amounting to Rs 12,521 crore.
Revenue Surplus represents the difference between revenue receipts and revenue expenditure. Revenue Surplus of Rs 314 Cr during 2017-18 increased to Rs 1508 cr in 2018-19.
During the 2018-19 fiscal deficit (Rs 3,512 cr) decreased by Rs 358 Cr over the previous year (Rs 3,870 cr). Primary Deficit of Rs 82 Cr in 2017-18 turned into primary surplus of Rs 510 Cr in 2018-19.
During 2018-19, the expenditure (Rs 34,493 cr) of the state increased by RS 3,181 cr (ten pc ) over the previous year. Revenue expenditure constituted 85.3 pc of total expenditure. Total expenditure on four components that is salary and wages, pension liabilities, interest payments and subsidies constituted 73 per cent of the revenue expenditure during 2018-19.
The report said that during 2018-19, capital expenditure (Rs 4,583 cr) increased by Rs 827 cr (22 per cent) over the previous years (Rs 3,756 cr). The share of capital expenditure to total total expenditure increased from 12 per cent in 2017-18 to 13.29 per cent in 2018-19.
During 2018-19 , state Revenue receipts (Rs 30,950 cr) increased by 13 p c over the previous year (Rs 27,367 cr) Only 33 pc of the revenue receipts came from the state’s own resources comprising taxes and non-taxes, while the remaining 6 pc was contributed by central transfers comprising the State’s share in central taxes and duties (18 pc) and grants in aid from Government of India (49 pc).