Public debt in HP mounts to 67888Cr by FY 202-21

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Image used for indicative purpose only. Source: Internet
Shimla, August 13
The Comptroller and Auditor General’s report on state financial position in the Assembly today figured that the State’s liabilities and public debt were Rs 67888.30 crore as of March 31, 2021. It displays an increase of Rs 6439.11 cr compared to the previous financial year, 2019-20.
Chief Minister Jai Ram Thakur, who holds the portfolio of finance, presented the CAG report on Financial status. The report said that the state borrowing on internal debt amounted to Rs 4 2918.21 Cr, Loans for state plan schemes Rs 3259.03 Cr. The report further noted that the public liabilities in small savings and Provident funds mounted to 16522.64 Cr., Reserve fund Rs 2717.19 Cr., Deposit and Advances Rs 3461.64 Cr. and Remittance Rs 541.91 Cr.
On the other hand, the State received receipts of Rs 8083.32 Cr as Tax revenue, Rs 2188.46 Cr as non-tax revenue, Rs 4753.92 Cr as a share of Union taxes and duties and Rs 18412.58 Cr as grants from the Central government during 2020-21.
The State disbursed Salaries tune to Rs 11641.16 Cr, Grant in aids Rs 4553.73 Cr, subsidies Rs 1240.63 Cr, General Services 11359.82 Cr, pension as Rs 6088.39 Cr, Interest payment and services of debt Rs 4472.45 Cr, Social services Rs 1736.19 Cr., Economic Services Rs 1315 Cr.
During the year 2020-21, there was an increase of 8.77 per cent ( 2,695.86 crores) in revenue receipts over the previous year.
Only 31 per cent of the revenue receipts came from the State’s resources comprising taxes and non-taxes, while the remaining 69 per cent were contributed by Central transfers comprising the State’s share in central taxes and duties ( 14 per cent ) and Grants – in – Aid from the Government of India ( 55 per cent ).
The report further stated that the total expenditure increased by 21.88 per cent (7,031.31 crores) over five years ( 2016-21 ). In FY 2020-21, the total expenditure was Rs. 39,164.25 crore which displayed an increase by Rs. 2,801.70 crores ( 7.70 per cent ) over the year 2019-20.
Share of Revenue expenditure ranged from 78.9 per cent to 86.7 per cent during 2016-21. The rate of growth of revenue expenditure displayed fluctuating trends over the same period, stated the CAG report.
The committed expenditure accounted for a dominant share of 67-71 per cent, and revenue receipts remained 65-70 per cent during the five years 2016-21.
During 2020-21, the capital expenditure was Rs 5,309 crore, accounting for an increase of 136 crore
( 2.62 per cent ) over the previous year, 2019-20, when it was Rs 5,174 crore. The capital expenditure constituted 13.56 per cent of total spending compared to 14.23 per cent during 2019- 20.
The overall fiscal liabilities at the end of the year were Rs 67,164.75 crore, excluding  Rs 1,717 crores received as back-to-back loans to the State from Govt of India in lieu of GST compensation shortfall. This increased by 7.96 per cent in 2020-21 compared to 14.57 per cent in the previous year.
The ratio of fiscal liabilities to GSDP in 2020-21 was 42.91 per cent ( calculated by excluding Rs 1,717 crore received as back-to-back loans ). Fiscal liabilities exceed the 15th finance commission target of 36 per cent. The maturity profile of outstanding stock of public debt was 43,845 crore ( excluding Rs 1,717 crore as back-to-back loans and 618 crores whose maturity was uncertain ) as on 31 March 2021, showing that the annual outgoing on public debt repayment and interest will be approximately 6,416 crores during the next five years up to 2025-26. Annual outgoing on-market loan repayment and interest will be around Rs 4,211 crore during the next five years up to 2025-26.
Reflecting state budgetary management, the CAG underlined that State expenditure tune of Rs 8458 remained unspent. The total budget provision in 2020-21 was Rs. 61,597 crores. The actual expenditure during the year was Rs. 53,139 crore. (86 per cent ). This resulted in savings of Rs. 8,458 crores ( 14 per cent ).
In five cases ( relating to five grants ), an excess expenditure of 88.69 crores over budget provision was incurred in 2020-21. During 2020-21, there were 10 cases ( one crore or more in each case ) under ten grants ( Revenue / Capital ) where the supplementary provision of Rs. 140.23 crores proved unnecessary as expenditure did not reach the level of the original provision.
In three cases, supplementary provision of Rs 349.83 crore proved insufficient as it was not adequate to meet the requirement, leaving aggregate uncovered additional expenditure of 88.60 crores.
Re – appropriations in 13 cases (savings of 10 crores and more in each case ) proved unnecessary, as the savings under these cases were more than the re-appropriated amount.
On the other hand, re – appropriations in 13 cases proved insufficient as there remained excesses under these grants.

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