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Last Updated : Sep 25, 2020 02:51 PM IST | Source: Moneycontrol.com

CAG report on government finances slams Centre for 'unrealistic assessment of financial resources'

Actual revenue receipts fell short of the RE by Rs 1.86 lakh crore (9.35 percent). As a result of this shortfall, despite compression of revenue expenditure as compared to the RE by Rs 1.42 lakh crore (5.94 percent), the actual revenue deficit was higher than anticipated by Rs 43,440 crore, CAG has found


Though there were clear trends indicating a shortfall in revenue and expenditure for FY19, as at the end of December 2018, these were not

factored in while framing the revised estimate (RE), and as a result of which, actuals of both non-debt receipts and expenditure fell short of the RE, the Cromptroller and Auditor General (CAG) in its audit of the Union Government Finance Accounts (UGFA) for FY19 has found.

Actual revenue receipts fell short of the RE by Rs 1.86 lakh crore (9.35 percent). As a result of this shortfall, despite compression of revenue expenditure as compared to the RE by Rs 1.42 lakh crore (5.94 percent), the actual revenue deficit was higher than anticipated by Rs 43,440 crore.

This combined with higher shortfall in recoveries of loans and advances compared with the shortfall in disbursement, resulted in a higher than anticipated fiscal deficit of Rs 15,609 crore.

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"This is indicative of an unrealistic assessment of financial resources," the CAG report said.

According to the report, during FY19, the government mobilised Rs 1.12 lakh crore. Of this, 81 percent was deployed for committed expenditure, like repayment of debt, discharge of public account liabilities, interest payments and mandatory transfer of tax receipts to states.

"After grants-in-aid to states/UTs and accounting for the closing cash balance, only 16 percent of the resources were available for all other expenditure of the Government of India," the report said.

According to the report, in comparison to FY18, total receipts of the Union government grew by 3 percent. Of this, non-debt receipts grew by 3.75 percent and debt receipts grew by 3.12 percent, while capital receipts fell by 5 percent.

Both tax revenue receipts and non-tax revenue receipts increased by
6 and 10 percent, respectively, over the previous year. The largest

contributors to the increase in non-tax revenues were dividend and profits.

During FY19, total expenditure increased by 4 percent (Rs 3.60 lakh
crore). Of this, revenue expenditure increased by 5.67 percent and capital
expenditure by 22.89 percent over the previous year. Increase in capitalexpenditure was largely due to bank recapitalisation, the report said.
First Published on Sep 25, 2020 02:51 pm
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