Himachal’s fiscal deficit up by 103-crore in FY 2020-21: CAG

Published on Aug 14, 2022 03:12 AM IST

Fiscal deficit of Himachal has increased to ₹5,700 crore in financial Year 2020-21 from ₹5,597 crore in the previous year, showing an increase of ₹103, primary deficit decreased to ₹1,228 crore during 2020-21 from ₹1,363 crore in 2019-20.

The report of the Comptroller and Auditor General (CAG), tabled by Himachal chief minister, Jai Ram Thakur in the state assembly, said the state has not yet amended the Fiscal Responsibility and Budget Management (FRBM) Act to prescribe revised targets for deficit and debt levels. (Getty Images/iStockphoto/ Representational image)
The report of the Comptroller and Auditor General (CAG), tabled by Himachal chief minister, Jai Ram Thakur in the state assembly, said the state has not yet amended the Fiscal Responsibility and Budget Management (FRBM) Act to prescribe revised targets for deficit and debt levels. (Getty Images/iStockphoto/ Representational image)
By, Shimla

The fiscal deficit of Himachal Pradesh has increased to 5,700 crore in the financial Year 2020-21 from 5,597 crore in the previous year, showing an increase of 103, primary deficit decreased to 1,228 crore during 2020-21 from 1,363 crore in 2019-20.

The report of the Comptroller and Auditor General (CAG), tabled by chief minister, Jai Ram Thakur in the state assembly, said the state has not yet amended the Fiscal Responsibility and Budget Management (FRBM) Act to prescribe revised targets for deficit and debt levels.

Against the target of maintaining the revenue surplus prescribed by the 15th Finance Commission (FC) and in the HP-FRBM Act, there was a revenue deficit 297 crore during 2020-21 as against the previous year’s revenue surplus of 12 Cr.

The actual fiscal deficit at 3.64% of GSDP remained within the 15th FC target but exceeded the targets set in the FRBM Act. The total outstanding debt / Gross State Domestic Product (GSDP) ratio, which stood at 42.91%, was above the target of 36% set by the 15th FC.

There was an increase of 8.77% or 22,695.86 crore in revenue receipts over the previous year. Only 31% of the revenue receipts came from the state’s own resources comprising taxes and non-taxes, while the remaining 69% were contributed by central transfers comprising the state’s share in central taxes and duties (14%) and grants-in-aid from the Government of India (55 %).

Total expenditure increased by 7,031.31 Cr (21.88%) over a period of five years (2016-21). During 2020-21, the total expenditure of the state increased by 2,801.70 crore (7.70%) over the year 2019-20.

During 2020-21, capital expenditure increased to 5,309 Cr, from 5,174 Cr in the previous year, thus an increase of 136 Cr or 2.62% and constituted 13.56% of total expenditure as compared to 14.23% during 2019-20.

Debt burden of 67K-crore

The overall fiscal liabilities at the end of the year were 67,164.75 crore, after excluding 1,717 crores received as back-to-back loans to state from the Government of India in lieu of GST compensation shortfall. These had increased by 7.96% in 2020-21 as compared with 14.57 per cent in the previous year. The ratio of fiscal liabilities to GSDP in 2020-21 was 42.91%. Out of a total of 2,799 outstanding Utilisation Certificates (UCs) for grants of 3,557.83 crore, 1,487 UCs for grants of 1,587.07 crore pertained to the period 2015-16 to 2018 19. Out of the total amount of 3,557.83 crore for which UCs were outstanding, 69.43% pertained to three departments- Panchayati Raj, Urban Development and Rural Development.

Out of 29 SPSES, 11 working SPSEs earned a profit of 28.18 crore as per the latest finalised accounts as compared to 36.24 crore earned by 12 SPSEs in 2019-20. Only three SPSES declared/paid dividends of 2.25 Cr to the government.

Out of a total loss of 518.60 crore incurred during 2020-21 by 10 SPSES, Himachal Road Transport Corporation reported a loss of 146.43 crore, HP State Electricity Board 185.32 crore and Himachal Power Corporation Ltd 105.98 crore. There were 13 SPSEs with accumulated losses of 4,074.85 crore. The net worth of nine out of these SPSES had been completely eroded by accumulated losses.

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  • ABOUT THE AUTHOR

    Gaurav Bisht heads Hindustan Times’ Himachal bureau. He covers politics in the hill state and other issues concerning the masses.

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