CAG expresses concern over increasing revenue deficit

The Comptroller and Auditor General (CAG) of India has depicted a grim picture of financial position of Himachal Government and expressed concern over growing revenue deficit which increased from Rs 1,633 crore in 2011-12 to Rs 2,979 crore in 2012-13.
In its report for 2012-13 on State Finances, tabled in the Assembly today, the CAG pointed out that the revenue deficit during 2012-13 was 4.13 per cent of GSDP, which was 1.13 per cent above the target of three per cent as stipulated under Financial Reforms and Budget Management Act 2005 (FRBM).
The state saw considerable growth during 2003-04 and 2012-13 and GSDP increased by 13.28 per cent but the revenue surplus of 645 crore in 2011-12 turned into deficit of Rs 576 crore in 2012-13 as the expenditure increased by Rs 2,276 crore (16 per cent), the CAG report said.

The grants-in-aid from Union government increased by Rs 792 crore (12 per cent) from Rs 6,521 crore in 2011-12 to Rs 7,313 crore in 2012-13, the report said.
There was consistent increase in the growth rate of revenue receipts during 2008-11 from 1.82 per cent to 22.86 per cent but it declined substantially by 14.41 per cent and 7.25 per cent in 2011-12 and 2012-13.
The major decline was in power sector (Rs 509 crore), interests receipts (Rs 45 crore) and forestry and wildlife (Rs 31 crore).