Fiscal situation improving but capital expenditure low: CAG

The CAG has praised the Trinamool Congress government for improving the fiscal situation in West Bengal but pulled it up for low capital expenditure.
"The state government has succeeded in improving the fiscal situation during 2012-13. Revenue receipts grew at a rate of 16 per cent, while the growth of revenue expenditure was 12 per cent," the CAG said in its report tabled in the state Assembly today.
It said that not only was the actual expenditure below Budget estimate, capital expenditure was low at only 5.19 per cent of total expenditure during 2012-13, the second year under the new Trinamool Congress government.

"This was indicative of failure on the part of the state in utilising its high cost borrowed funds to create capital assets for accelerating development, as most of the high cost borrowed funds were utilised to meet revenue expenditure," the CAG said.
During the year, revenue receipts were Rs 68,296 crore as against revenue expenditure of Rs 82,111 crore, resulting in revenue deficit of Rs 13,815 crore.
The revenue deficit was 2.22 per cent of GSDP as against the FRBM (Fiscal Responsibility and Budget Management) Act target of 1.1 per cent.
The fiscal deficit during 2012-13 stood at Rs 19,146 crore which was 3.08 per cent of GSDP as against the FRBM Act target of 3.5 per cent, the report added.