The Comptroller and Auditor General (CAG) has expressed concern over the increase in Himachal Pradesh's revenue deficit and said that the target of reducing the same is yet to be achieved by the state.
The revenue deficit, fiscal deficit and primary deficit which stood at Rs 576 crore, Rs 297 crore and Rs 609 crore, respectively, in 2012-13, increased to Rs 1,614 crore, Rs 4,011 crore and Rs 1,530 crore, respectively, in 2013-14, the CAG said in its report for 2013-14 tabled in the Assembly today by Chief Minister Virbhadra Singh.
The deficit was 4.86 per cent of GSDP (Gross State Domestic Product), which was higher than the three per cent target as desired in the Fiscal Responsibility and Budget Management (FRBM) Act even as the growth rate of GSDP was higher than the national growth rate.
Revenue receipts grew by Rs 113 crore (one per cent) while the revenue expenditure rose by Rs 1,178 crore (7.29 per cent). The increase in Non-plan and Plan expenditure was also higher at Rs 870 crore and Rs 308 crore, respectively.
The fiscal deficit was met by public debts amounting to Rs 2,347 crore and 84 per cent of revenue receipts (Rs 15,711 crore) of the state government was spent on committed expenditure like salaries (Rs 7,323 crore), interest payments (Rs 2,481 crore), pensions (Rs 2,855 crore) and subsidies (Rs 467 crore), the report said.
The outstanding debt of the state stood at Rs 33,884 crore on March 31, 2014, which was 41.03 per cent of GDSP while the amount of outstanding guarantees was Rs 4,333 crore.
The report further pointed out that the committed expenditure increased by 65 per cent from Rs 8,092 crore in 2009-10 to Rs 13,348 crore in 2013-14 while the revenue expenditure rose by 56 per cent from Rs 11,151 crore in 2009-10 to Rs 17,352 crore in 2013-14, leaving the government with lesser flexibility in development spending.
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