State-own resources scarce to coverrevenue spending, underlines CAG
Highlighting three audit reports submitted in the J&K legislative assembly on March 4, principal accountant general Subhash Chander Pandey on Saturday presented a very grim picture of the state's affairs in three major areas — finances, PSUs, and revenue and the government departments (non-PSUs).india Updated: Mar 08, 2014 19:35 IST
Highlighting three audit reports submitted in the J&K legislative assembly on March 4, principal accountant general Subhash Chander Pandey on Saturday presented a very grim picture of the state's affairs in three major areas — finances, PSUs, and revenue and the government departments (non-PSUs).
Addressing a press conference here on Saturday, Pandey claimed that the government on many occasions failed to cooperate with the audit and accounts department.
"The state-own resources have proved to be insufficient to cover the revenue expenditure. There is continuing diversion of planned grants meeting the non-planned revenue gap," said Pandey.
He said: "The non-planned revenue is dominated by four principal constituents — salaries and other personnel costs of employees and para-employees; pensions and other post-retirement benefits, interest payments; and power department's deficit."
He said together these constituted nearly 63.32% of the total expenditure, 81.8% of the total non-planned revenue expenditure and 241% of state's own tax/nontax revenues.
On fiscal consolidation and regulation of debt and deficit, Pandey said the annual targets for fiscal deficit and total liabilities stood diluted due to change in the methodology of computation of the gross state domestic product (GSDP) after the finance commission awards, as the targets were not tightened.
"The percentage of market loans to total liabilities increased from 29.6% in 2008-09 to 38.5% in 2012-13. Gradually, increasing reliance on the open market for debt financing exposes the state to market risks in due course. Presently, the maturity profile is such that there is no redemption pressure in short and medium term." he said.
The other report on PSUs regarding recovery of loans in the state financial corporation (SFC) too gave a dismal account.
The targets of recovery of non-performing assets (NPAs) were not fixed by the SFC, while the targets for over dues were very small, these too could not be achieved.
"Despite settling 641 cases under the one time settlement scheme (OTS) and writing off huge amount of Rs 603.82 crore, there had not been significant reduction of NPAs. Though OTS 2011 scheme was finally extended till June 2011, the corporation continued with the scheme during 2011-13 without the approval of the government and recovered Rs 10.88 crore while it sacrificed interest worth Rs 173.44 crore," said Pandey.
On a query as to whether Roshni Act has benefitted the encroachers rather than adding to the government exchequer, Pandey said: "Since his department is directed not to interfere into the cabinet's decision, but when the secretariat itself passes the buck to the lower rung for collecting and gathering information for audit through deputy commissioners, it becomes self-explanatory that either secretariat do not have the information or do not intends to share."
"The principal objective of the Act was to raise resources for investment in power sector and the government had estimated resource mobilisation of Rs 25,448 crore by selling 20,64,792 kanals state land under unauthorised occupation. Only Rs 76.24 crore (24%) was realised against a demand of Rs 317.54 crore raised in the actual transfer of 3, 48,160 kanals in the state," said Pandey.
Irregular rebates/discounts in transfer of 666 kanals resulted in a loss of Rs 225.26 crore to the state exchequer in 547 test checked cases.
First Published: Mar 08, 2014 19:33 IST