CAG flags concern over HP govt's failure tocut fiscal deficit

The Comptroller and Auditor General of India (CAG) todayexpressed concern over the "failure" of Himachal Pradesh government to achieve the target of zero fiscal deficit during 2011-12.
The CAG in its report of State of Finances for year ending on March 31, 2015,presented in the state assembly, noted that the revenue and fiscal deficit which stood at Rs 1641 crore and Rs 4011 crore in 2013-14 increased to Rs 1944 crore and Rs 4200 crore respectively in 2014-15.
It said the fiscal deficit was 4.39 per cent of GSDP (Gross State Domestic Product) in 2014-15 against projected 3 per cent. Further, the fiscal liabilities were Rs 38,192 crore which reflected growth of 13 per cent over Rs 33,884 crore deficit during the previous year.

It stood at 40 per cent of GSDP and 214 per cent of revenue receipts.
The average return on the government's investments in statutory corporations, rural banks and joint stock companies was 3.81 per cent in the past five years while the government paid interest at an average rate of 7.86 per cent on its borrowings, the report said.
The share of closing balance of market loans in the total public debt also increased from 49.45 per cent in 2010-11 to 59.06 per cent in 2014-15.

Thirteen projects of two departments which were scheduled to be completed between July 2005 and March 2015 were still lying incomplete (March 2015) while the Social Sector expenditure as a proportion of aggregate expenditure in the state was lower than that of SCS (Special category states) by 2.92 and 3.06 per cent in 2011-12 and 2014-15 respectively.

The excess expenditure of Rs 1,585.69 crore in 2014-15 in addition to Rs 5,055.89 crore for the years 2009-14 required regularisation of the State Legislature.
In 16 cases Rs 1,648.74 crore were surrendered at the end of the financial year(more than Rs 10 crore surrender in each case), it noted.
There were delays in furnishing 15,539 Utilisation Certificates in respect of loanand grants amounting to Rs 2,387.39 crore as on 31 March 2015 and it could not be ascertained whether the recipients had utilised the grants for the purpose for which these were given.