Odisha's public debt up 237% in four years

In 2014-15 alone, public debt rose by Rs 1,818 crore, or 79%; CAG concerned about future repayment obligations

Public debt receipts in Odisha saw a spurt of 237 per cent between 2010-11 and 2014-15, from Rs 2268 crore to Rs 7,646 crore.

In 2014-15 alone, the debt rose by Rs 1,818 crore (or 79 per cent), says a report on state finances by the Comptroller & Auditor General of India (CAG) for the year ended March 2015.

CAG expressed concern at the rising public debt, stating it creates future repayment obligations.

Public debt receipts during 2014-15 comprised internal debt of Rs 7,117 crore and loans and advances from the Government of India (Rs 529 crore). Debt receipts had a predominant share in capital receipts and were between 90 and 99 per cent during 2010-15. Non-debt receipts had a smaller share in capital receipts and ranged between one to 10 per cent during the period.

The state government, in its reply to the auditor in November 2015, said public debt was raised to finance capital outlay. Capital expenditure of the state as proportion of total expenditure increased from 13 per cent (Rs 4,285 crore) in 2010-11 to 18 per cent (Rs 11,075 crore) in 2014-15. It rose 43 per cent in 2014-15 mainly on account of increase in expenditure on roads and bridges, irrigation and flood control, medical and public health and education, sports, arts and culture.

Total expenditure of the state government rose 84 per cent between 2010-11 to 2014-15, from Rs 33,968 crore to Rs 62,569 crore. Revenue receipts rose from Rs 33,276 crore in 2010-11 to Rs 56,998 crore in 2014-15, growth of 71 per cent.

During 2014-15, the overall saving was Rs 18,775 crore. These were mainly due to non-implementation of schemes and less requirement of funds. Major policy initiatives in the Budget could not be implemented due to lack of proper planning, the CAG report noted. There were savings of Rs 12,506.47 crore in 14 cases under nine grants and two appropriations exceeding Rs 100 crore in each case.