Karnataka's revenue surplus decreased by Rs 2,638 cr: CAG

Karnataka had a revenue surplus of Rs 1,883 crore during 2012-13, according to a CAG report.
This figure is lower by Rs 2,638 crore over the previous year.
The CAG report for the year ending March 2013 tabled in the state assembly, said the revenue expenditure increased by 17 per cent over the previous year, while the growth rate of revenue receipts was 12 per cent.
The report said the ratio of tax revenue to GSDP had shown an increasing trend since 2009-09, when it increased from 8.91 per cent in 2008-09 to 10.23 per cent during the year.
Ratio of non-tax revenue to revenue receipts has significantly reduced from 7.30 per cent in 2008-09 to 5.10 per cent during the year, it said.

Referring to revenue expenses, the report said expenditure under soial and economic sector registered growths of 21 and 13 per cent, respectively over the previous year, while the growth in general services was 23 per cent, the report said.

The share of plan expenditure in total revenue expenditure increased from Rs 18,567 crore in 2011-12 to Rs 21,212 crore in 2012-13, it said.
Eighty eight per cent of revenue expenditure consisted of committed expenditure on salaries, pensions, interest payments, subsidies administrative expenses, grants-in-aid and financial assistance and devolutions to local bodies.
Explicit subsidy increased from Rs 7,390 crore in 2011-12 to Rs 10,709 crore during the year and implicit subsidy increased from Rs 1,313 crore in 2011-12 to Rs 1,893 crore during the year, the report said.

As per the recommendation of Twelfth Finance Commission, expenditure forming implicit subsidy should be brought out for transparency in accounts, it said.
The report said the union government directly transferred Rs 6,649 crore to the state implementing agencies during 2012-13, but the transfer of funds from the Centre to the state implementing agencies directly ran the risk of inadequate monitoring of utilisation of funds by these agencies in the absence of uniform accounting procedures and effective monitoring system.