Himachal's revenue deficit increasing: CAG

The revenue deficit of Himachal Pradesh increased to Rs.1,944 crore in 2014-15 from Rs.1,641 crore in the previous fiscal, the Comptroller and Auditor General of India (CAG) said on Thursday.

Presenting a grim picture of the state's financial health, the CAG, in its March 2015 report laid in the assembly, said the fiscal deficit in 2014-15 was 4.39 percent of the gross state domestic product against the three percent projections made in the Thirteenth Finance Commission.

It said the fiscal deficit that stood at Rs.4,011 crore in 2013-14 increased to Rs.4,200 crore in the next fiscal.

The ratio of capital expenditure to the total expenditure in the social and economic services was 0.02 and 0.08, respectively, in 2014-15 which is a matter of concern, said the government auditor.

The total expenditure of the state increased from Rs.15,962 crore to Rs.22,734 crore in five years from 2010, while the revenue expenditure of the state government increased by 42 percent from Rs.13,946 crore in 2010-11 to Rs.19,787 crore in 2014-15.

The CAG report, which was laid on the last day of the session that saw 25 sittings, said the non-plan revenue expenditure increased by 35 percent from Rs.12,294 crore to Rs.16,583 crore in during 2010-15.

Likewise, the capital expenditure increased by 38 percent from Rs.1,789 crore to Rs.2,473 crore during this period.

The revenue expenditure constituted 86 to 88 percent of the total expenditure in 2010-15 and capital expenditure nine to 11 percent.

During this period, the total expenditure increased at an annual average rate of 12 percent, whereas revenue receipts grew at an annual average growth rate of 12 percent.

The auditor pointed out fiscal liabilities at the end of 2015 were Rs.38,192 crore with the growth of 13 percent over the previous year's Rs.33,884 crore.