CAG for effective measures to recover loans

The Comptroller and Auditor General of India (CAG) has called for "effective" measures to recover outstanding loans from entities and institutions.
In its audit report for the year 2014-15, the CAG has pointed out that loans outstanding against state level organisations and institutions constitute the major portion of total outstanding loans of Delhi government.
The report, tabled in the Delhi Assembly today, pointed out fiscal imbalances in finances of Delhi government on the basis of three parameters - revenue, fiscal and primary.
"Majority of the state enterprises and institutions to whom loans and advances were given by Delhi government and remained outstanding at the end of 2014-15, were in the sectors of water supply and sanitation (Rs 15,783.88 crore), urban development schemes (Rs 1,749.59 cr), road transport (Rs 13,698.65 cr), power projects (Rs 10,450.52 cr) and miscellaneous loans (Rs 14,909.19 cr)," the report said.

The CAG recommended that the "state government may consider increasing the capital expenditure to have a positive impact on economic growth and taking effective measures to recover outstanding loans from the entities/institutions."
Capital expenditure decreased by Rs 303.48 crore (6.45 per cent) in 2014-15 over the previous year, the report cited.