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Fiscal liabilities of HP up by 46% in 2010-11: CAG
The fiscal position of Himachal Pradesh has worsened as liabilities have increased by 46.17 per cent to Rs 26,415 crore in 2010-11 from Rs 18,071 crore in 2006-07, government auditor CAG has said.
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Shimla: The fiscal position of Himachal Pradesh has worsened as liabilities have increased by 46.17 per cent to Rs 26,415 crore in 2010-11 from Rs 18,071 crore in 2006-07, government auditor CAG has said.
The liabilities stood at 2.08 times the revenue receipts at the end of 2010-11, a report of Comptroller and Auditor General of India (CAG) for the year ending March 31, 2011, tabled in the House today said.
However, there is a reasonable prospect of the state returning to fiscal correction path if some concrete steps are taken, the report added.
"The state has achieved three out of eight targets as set out in Fiscal Responsibility and Budget Management (FRBM) and 13th Finance Commission and efforts should be made to increase tax compliance, reduce tax administration costs, collection of revenue arrears and prune unproductive expenditure so that deficit can be curtailed," it said.
Steps are required to improve collection of non-tax revenue, the report further said.
"The state government was required to set up a consolidated sinking fund as recommended by 12th Finance Commission for amortisation of market borrowings as well as other loans and debt obligations but it has not yet been set up," it said.
The CAG blamed the alarming deterioration in the financial position on high expenditure on salaries and wages.
It also pointed out that the expenditure of Rs 5,951 crore on salaries and wages during the last fiscal was Rs 1,496 crore more than the projection of Rs 4,455 crore in medium term fiscal plan statement (MTFPS). CAG said this requires the attention of the government.
While the government raised high cost borrowings from the market during 2006-11 at an average interest rate 8.81 per cent, the return from investments of Rs 2,864 crore during the period was 1.78 per cent.
The revenue deficit and fiscal deficit was 2.36 and 4.83 per cent respectively of the gross state domestic product during 2010-11 which was higher than the projection made by the Finance Commission.
Observing that the dependence of the state on central transfers was 58 per cent in 2010-11, the CAG report said the state failed to contain the consolidated debt at 49.70 per cent of GSDP by 2010-11 as per the FRBM Act but it stood at 58 per cent.
PTI
The liabilities stood at 2.08 times the revenue receipts at the end of 2010-11, a report of Comptroller and Auditor General of India (CAG) for the year ending March 31, 2011, tabled in the House today said.
However, there is a reasonable prospect of the state returning to fiscal correction path if some concrete steps are taken, the report added.
"The state has achieved three out of eight targets as set out in Fiscal Responsibility and Budget Management (FRBM) and 13th Finance Commission and efforts should be made to increase tax compliance, reduce tax administration costs, collection of revenue arrears and prune unproductive expenditure so that deficit can be curtailed," it said.
Steps are required to improve collection of non-tax revenue, the report further said.
"The state government was required to set up a consolidated sinking fund as recommended by 12th Finance Commission for amortisation of market borrowings as well as other loans and debt obligations but it has not yet been set up," it said.
The CAG blamed the alarming deterioration in the financial position on high expenditure on salaries and wages.
It also pointed out that the expenditure of Rs 5,951 crore on salaries and wages during the last fiscal was Rs 1,496 crore more than the projection of Rs 4,455 crore in medium term fiscal plan statement (MTFPS). CAG said this requires the attention of the government.
While the government raised high cost borrowings from the market during 2006-11 at an average interest rate 8.81 per cent, the return from investments of Rs 2,864 crore during the period was 1.78 per cent.
The revenue deficit and fiscal deficit was 2.36 and 4.83 per cent respectively of the gross state domestic product during 2010-11 which was higher than the projection made by the Finance Commission.
Observing that the dependence of the state on central transfers was 58 per cent in 2010-11, the CAG report said the state failed to contain the consolidated debt at 49.70 per cent of GSDP by 2010-11 as per the FRBM Act but it stood at 58 per cent.
PTI
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