E-Paper
Himachal’s fiscal deficit increased by 31% in 2017-18 financial year
The report points out that state is on a fiscal correction path but hasn’t yet amended the Fiscal Responsibility and Budget Management (FRBM) Act as recommended by the 14th finance commission
The fiscal deficit of Himachal Pradesh (HP) swelled to ₹3,870 crore in financial year 2017-18 from ₹2,948 crore in 2016-2017, an increase of 31.27% (₹922 crore), a comptroller and auditor general (CAG) report has revealed.
The report was tabled by chief minister (CM) Jai Ram Thakur in the House on Saturday. The report points out that state is on a fiscal correction path but hasn’t yet amended the Fiscal Responsibility and Budget Management (FRBM) Act as recommended by the 14th finance commission.
The surplus of the state has consistently declined from ₹1,137 crore in 2015-16 to ₹920 in 2016-17 and ₹314 crore in 2017-18 despite heavy devolution from the government of India, says the report.
“Primary surplus of ₹990 crore and ₹411 crore during 2015-16 and 2016-17, respectively, turned to primary deficit of ₹82 crore in 2017-18,” it said. During the given financial year, the state’s revenue receipts increased by 4% to ₹27, 367 crore from previous year’s ₹26,264 crore and only 35% of the revenue receipts came from the state’s own resources comprising taxes and non-taxes. Remaining 65% were contributed by central transfers comprising the state’s share in central taxes and duties (17%) grants-in-aid from the government of India (48%).
The report states that substantial amounting to ₹901.83 crore were still being transferred by the government of India directly to the state implementing agencies during 2017-18 despite the centre government’s decision to route these funds through state budget from 2014-15.
DECREASE IN TOTAL EXPENDITURE
Further, total expenditure (₹31, 312) of the state decreased by 3% (₹ 821 crore) over the previous year primarily on account of the disbursement of loan of ₹2,890.50 crore during 2016-17 to DISCOM (distribution companies) under Ujjwal DISCOM Assurance Yojana (UDAY).
The revenue expenditure increased by 7% or ₹1,709 crore from ₹25,344 crore in 2016-17 to ₹27,053 crore in 2017-18 and its share in total expenditure increased to 86% over previous year’s 79%.
Overall fiscal liabilities at the end of the year were ₹51,030 crore with a growth of 8% over the previous year. Fiscal liabilities were 37.55% of the GSDP and 1.86 times of the revenue receipts, the report states. During next 10 years, the state has to repay market loan of ₹20,874 crore that is 96.75% out of total outstanding loan of ₹21,574 crore with interest amounting to ₹9,483 crore.
The expenditure of ₹37,811.09 crore was incurred against total grants and appropriations of ₹41, 267 crore. The report also points to the delays in submission of utilization certificates occurred and as a result proper utilization of grants could not be ensured. A large number of autonomous bodies did not prepare their final accounts for considerable period as a result of which their financial position could not be assessed.
