Fiscal Deficit declines to 4.03 percent, higher than FRBM Act target

Fiscal Deficit declines to 4.03 pc, higher than FRBM Act target

Rajasthan's fiscal deficit decreased from 5.86 per cent in 2020-21 to 4.03 per cent of state GDP in 2021-22, which was higher than the target of 3 per cent as prescribed under FRBM Act, 2005, as per the CAG report tabled in Rajasthan Assembly on July 19.

However, the Revenue Deficit of the State Government was Rs 25,870 crore during the year 2021-22.
As per the CAG report, during 2021-22, there was short transfer of Employee contribution to New Pension Scheme (NPS) by Rs 641.89 crore. Further, a deferred liability of Rs 809.00 crore on the part of state government due to short transfer of employee contribution by Rs 778.28 crore and legacy amount of Rs 30.72 crore was also found.
Budgetary assumptions of the State Government were not realistic during 2021-22 and despite carrying out an elaborate pre-budget exercise to bring out efficiency and transparency in budget formulation and execution, budgetary estimates were off the mark to a considerable extent, and control over the execution and monitoring of budget was inadequate, the report said.
"Despite flagging these issues every year over the last several years, the State Government has failed to take corrective measures in this regard," the report mentioned.
Various departments did not submit 770 Utilisation Certificates aggregating to Rs 1,833.21 crore pertaining to the period 2010-11 to 2020-21 to the office of the auditor general as on 31 March 2022.
While evaluating the financial performance of state PSUs, the CAG report said that the contribution of PSUs to GSDP of Rajasthan declined from 8.29 per cent in 2019-20 to 7.44 per cent in 2021-22.
Out of 42 Government Companies and Statutory Corporations, 27 PSUs earned profit, 12 PSUs reported losses and three PSUs had neither profit nor loss during the year 2021-22. As on 31 March 2022, 23 PSUs had accumulated losses of Rs 1,07,318.60 crore.
As on 31st March 2022, the net worth of 15 out of 23 loss-making PSUs had been completely eroded by accumulated losses. The total net worth of these 15 PSUs was negative at Rs 62,749.66 crore against the paid-up capital of Rs 34,596.22 crore, as per the report. PTI AG MR