Releasing this new profile of one’s comptroller and auditor general (CAG) getting 2014-15, principal accountant general Jagbans Singh told you Punjab’s cash cost (non-productive) was on the rise while the financing expenditure (productive) had gradually refuted. (Karun Sharma/HT Pictures)
In spite of the significant claims made by the newest Unfortunate-BJP regulators, the main accountant standard shown a keen abysmal image of Punjab earnings when you are issuing a loud and you may clear caution – the state is on course having a primary financial obligation pitfall as 1 / 2 of of financial accountability off whopping Rs step 1.12-lakh crore has to be reduced within the next 7 decades.
Introducing around three of the five reports of one’s comptroller and you will auditor standard (CAG) getting 2014-fifteen, dominant accountant general Jagbans Singh said Punjab’s money expense (non-productive) is actually increasing because the capital expenditure (productive) got gradually refuted. The guy told you a large part of cost are complete into the installment and you may maintenance the brand new hefty finance, making little currency for the county to expend into advancement situations.
Besides the state of the latest finances, the new reports create to the Tuesday plus pointed out numerous cases of misappropriation off fund worthy of crores from rupees, along with highlighting this new a deep failing financial fitness of your social field units.
The newest CAG along with found a major mismatch between the cash borrowing from the bank restrict (CCL) found of the bodies in comparison to the inventory regarding grain stored from the condition procurement firms
New funds receipts grew during the an annual mediocre rate out-of 8.27% while in the 2010-eleven to 2014-fifteen, whereas revenue expenditure became at a yearly mediocre speed from 8.34%. The new cash expense (non-productive) went on so you’re able to form a principal part (93 to 95%) of the full costs during this time period. The increase in the money invoices for the 2014-15 (Rs 4,100000 crore) was also due mainly to boost in offers out of authorities away from Asia.
New funds expense (non-productive) increased from the Rs 5,000 crore, while funding cost (productive) increased because of the Rs 900 crore. The administrative centre costs, although not, was just 33% of your own forecasts produced in this new financial integration roadmap.
The brand new cash deficit flower to Rs seven,600 crore out-of a shortage from Rs 5,3 hundred crore this current year-eleven. Government entities failed to secure the cash deficit within this restrict from ‘zero for every cent’ prescribed throughout the fiscal consolidation roadmap.
Anyone obligations risen up to Rs step 1.12-lakh crore off Rs 75,100 crore this present year-eleven. A major part of borrowings was utilised for installment out-of earlier borrowings (47 so you can 70%) and you may funds expenses (20 so you can 39%). Simply 8 so you’re able to 19% of one’s borrowings was in fact utilised for financing expenditure during 2010-15.
“When it routine continues on, Punjab would not be able to build more money to provider its obligations also it could have zero option but to boost the fresh new borrowings annually to repay the newest borrowings off before years,” claims the fresh declaration.
Regulators needs to pay back 11% of the debt between 1-3 years, 20% anywhere between 3-5 years and 19% between 5-seven many years. They signifies that condition should pay-off over fifty% of the debt within the next eight many years. “This might be an alarming status and also the condition are heading on the a serious financial obligation payment position, that’s known as loans pitfall,” alerts brand new declaration.
The guy told you a corner of your cost is actually complete towards installment and upkeep this new hefty fund, leaving very little money to have advancement things
Though the debt-GSDP (gross state home-based tool) ratio at thirty two% is actually in address repaired (38.7%) underneath the Fiscal Responsibility and you may Funds Government Operate, the borrowed loans was primarily useful redemption out-of earlier expense. Doing 23% of cash invoices were utilized so you can provider the new bills throughout the current year.
The new Punjab government could have been indulging in some severe bluffing while you are glossing along the levels of electricity utilities and you will cereals procurement companies.
The new CAG statement placed in new system into Friday evening provides indicated that when you’re profile of one’s part of the abilities and you can deal review of your Punjab County Fuel Enterprise Minimal (PSPCL) and you can Punjab State Transmission Agency Limited (PSTCL) had been “refurbished” to look top, the official procurement companies inflated its a fantastic arrears by several hundred crores.
If you are unbundling the brand new Punjab County Electricity Board, Punjab got placed a monetary load out-of Rs twenty five,100000 crore towards the a few the newest enterprises–PSPCL and you will PSTCL–by passing unfunded debts onto her or him. Surprisingly, the state bodies needed in order to “refurbish the harmony sheet sets” from the inflating its collateral resource on the a couple of agencies of the Rs step three,700 crore from the reflecting user efforts and you will grants and subsidies since the security investment and and re-respected property possessions regarding Rs cuatro,900 crore whose control was not vested regarding a couple replacement entities.
New CAG report told you the state procurement enterprises (SPAs) presented Rs 16,350 crore once the recoverable title loans Kansas, from which Rs 11,eight hundred crore got accredited given that doubtful. More over, there’s a great mismatch away from Rs 21,100 crore between the outstanding CC limitation and you can stock from foodgrains stored by this type of firms.
Take to look at of one’s info off 281 offices out-of transformation taxation/value-added taxation, state excise, cars, services and products and people, forest receipts or any other department workplaces used by CAG exhibited less than comparison/quick levy/loss of revenue aggregating Rs 2,five hundred crore in more 35,one hundred thousand times. The new divisions managed to recover just Rs crore.
Except that the condition of new finances, brand new records create on the Tuesday in addition to talked about multiple instances of misappropriation off money value crores out-of rupees, along with showing the fresh new a failure fiscal fitness of the personal business devices.