Bihar heading to a revenue surplus

The target to reduce revenue deficit to zero as per 12th Finance Commission recommendations has been achieved and Bihar was heading to a revenue surplus, a Comptroller and Auditor General (CAG) of India report said.

Last Updated: Jul 23, 2010, 18:44 PM IST

Patna: The target to reduce revenue deficit
to zero as per 12th Finance Commission recommendations has
been achieved and Bihar was heading to a revenue surplus, a
Comptroller and Auditor General (CAG) of India report said.

The report for the period ended March 2009, presented in
the assembly by Deputy Chief Minister S K Modi, who holds
charge of the finance department, said revenue receipts
between 2008-09 increased by Rs 4770.97 crore mainly due to
grants-in-aid and share of Union taxes from the Centre.

The revenue expenditure was 80 per cent of the total
expenditure. A total 75 per cent of it was under non-plan,
which included expenditure on salary, pension payment,
interest liabilities and subsidies, it said.

The report said increasing fiscal liabilities accompanied
by negligible rates of return on government investments might
lead to a situation of unsustainable debt in the medium to
long run unless suitable measures are initiated to compress
the non-plan revenue expenditure and mobilise additional
resources, both through the tax and non-tax sources.

During 2008-09 there was overall savings of Rs 11313.14
crore. Cases were noticed where Rs 168.88 crore surrendered
was in excess of the actual savings.

Out of savings of Rs 9802.01 crore, Rs 2669.29 crore was
not surrendered and Rs 6310.70 crore was surrendered on the
two working days of March 2009 by the concerned departments.

There was 100 per cent surrender of funds amounting to Rs
103.23 crore in 31 schemes.

Excess expenditure of Rs 7026.64 crore, incurred during
the year 1977 to 2008, was pending for regularization under
Article 205 indicating inadequate budgetary control, the
report said.

A performance audit of National Rural Health Mission
revealed improvement in flow of funds to rural health
institutions and health awareness among rural population, it
said.

PTI