CAG says off-budget liabilities of Andhra at ₹32,903 crore
The off-budget liabilities of the Andhra Pradesh government stood at ₹32,903 crore at the end of the 2023-24 financial year
The off-budget liabilities of the Andhra Pradesh government stood at ₹32,903 crore at the end of the 2023-24 financial year, the Comptroller and Auditor General (CAG) of India said in its report tabled in the state assembly on Wednesday.
The CAG, which reviewed the state government’s budget for the financial year 2023-24, said the off-budget borrowing is a liability of the government in as much as the principal and the interest thereon invariably are serviced through the government budget, either as assistance or grant to the state government organisation.
According to the CAG report, the previous government had availed of open market borrowings of ₹68,400 crore during 2023-24, which is well within the limits of ₹68,414 crore fixed by the Central government under Fiscal Responsibility and Budget Management (FRBM) rules.
In addition to directly raising loans from the market, the state government also guarantee loans raised by statutory corporations, government companies and corporations, co-operative societies from the market and financial institutions.
“These guarantees are contingent liability on the consolidated fund of the state in case of default in the payment of loans, and interest thereon, raised by these organisations for whom the guarantee was extended and are projected outside the state budget,” the report said.
The Andhra Pradesh government had resorted to these off-budget borrowings but had not disclosed the quantum or source of proposed off-budget borrowings in its budget. “The state government informed the Union ministry of finance that it had off-budget liabilities of ₹89.58 crore during 2023-24 and to the tune of ₹32,903.84 crore to the end of March 31, 2024,” the CAG report said.
In the year 2023-24, as per vouchers scrutiny, the state government budgeted and expended an amount of ₹10,037.31 crore towards assistance or grants on account of off-budget borrowings. In addition to the off-budget borrowing, implicit subsidies to the state power utilities to the extent of ₹14,014.63 crore on account of non-recovery of cost was also provided in the year 2023-24,” the CAG said.
It also pointed out that the state government had also fallen short of the target of total receipts during the financial year. Total receipts for 2023-24 were ₹2,36,511 crore against budget estimate of ₹2,56,865 crore, a shortfall of more than ₹20,000 crore.
Further, it pointed out that Andhra Pradesh recorded a revenue deficit of ₹38,683 crore, which is 2.68% of the GSDP, for the financial year 2023-24 in line with the target ratio of 3% or less. On the other hand, fiscal deficit for the same period stood at ₹62,720 crore, accounting for 4.35% of GSDP -- much higher from the target ratio of 4% or less.
Recommended Topics