E-Paper
Himachal Pradesh government spending more funds than approved budget, finds CAG
In 13 grants and two appropriations, the Himachal Pradesh government spent an amount of ₹1,782.17 crore more than the approved budget, the CAG report revelaed
The State Finances Audit Report by the comptroller and auditor general (GAG) for the financial year ending on March 31, 2022, revealed financial mismanagement on the state government’s part.
The report points out that the government, over the years, spent more funds than the budget approved by the legislature. The report was tabled by chief minister Sukhvinder Singh Sukhu in the assembly on Wednesday.
In 13 grants and two appropriations, the government spent an amount of ₹1,782.17 crore more than the approved budget. The report states that from the financial year 2014-15 to 2020-21, an amount of ₹8,818.47 crore spent without the approval of the House was expected to be regularised by the legislature.
It pointed out that the government could not even spend the original budget in many cases, but provision of additional funds for grants was made in the supplementary budget. Also, the government was to repay the debt of more than ₹61,000 crore in the next 10 years. If the sources of income are not increased, the report said, the state’s economy will get stuck in a debt trap.
The report said, in 13 cases under 11 grants, supplementary provisions of ₹647.13 crore proved unnecessary, adding that it was obvious that the government made a provision in the supplementary budget, but actual expenditure did not even reach the original amount.
Noting that the government did not amend the Fiscal Responsibility and Budget Management Act to overcome the deficit and the debt, the CAG expressed surprise in the report that the revenue deficit of ₹97 crore in 2020-21 was converted into a surplus of ₹1,115 Cr in 2021-22, while the deficit of ₹5,245 crore was decreased by ₹455 crore in 2020-21 and from ₹1,228 crore to just ₹604 crore in 2021-22.
By the end of the financial year 2021-22, the government had a debt burden of ₹68,630 crore including interest. This includes ₹45,297 crore of principal amount and ₹23,333 crore in interest. It was noted that the state has to repay the debt of ₹27,677 crore in the next five years, while another ₹34,001 crore will have to be repaid thereafter.
Till 2026-27, the government will have to spend an amount of ₹6,926 crore every year on loan payments, it added.
