In its latest report for the year ending March 1995, the CAG said the state's revenue expenditure (both plan and non-plan) shot up from Rs 4952.37 crore in 1990-91 to Rs 7564.71 crore in 1994-95, recording a rise of 53 per cent.
However, the non-plan expenses during the corresponding period rose from Rs 3973.47 crore in 1990-91 to Rs 6670.82 crore in 1994-95, registering a rise of Rs 2697.3 crore, while the plan expenditure slumped from Rs 978.9 crore in 1990-91 to Rs 893.89 crore in 1994-95, a decline of Rs 85.01 crore.
The report said though the state's revenues (including receipts from the Centre) maintained a steady rise from Rs 4193.07 crore in 1990-91 to Rs 4672.69 crore in the following year, Rs 5900.67 crore in 1992-93, Rs 6250.44 crore in 1993-94 and Rs 6307.24 crore in 1994-95, its performance on internal resources mobilisation front remained dismal.
The CAG said the tax and non-tax receipts of the state from its own resources were insufficient to meet even the non-plan expenses.
While the state's total receipts from internal sources stood at Rs 1584.63 crore in 1990-91, the non-plan expenditure was Rs 3973.47 crore.
The non-plan expenses stood at Rs 6670.82 crore in 1994-95 against the gross revenue receipts of Rs 2526.4 crore.
The report said against the budgetary estimates of plan expenditure (including supplementaries) of Rs 2133.47 crore for 1994-95, the actual plan expenses were pegged at Rs 893.89 crore, a shortfall of Rs 1239.58 crore.
The CAG expressed concern over the spiralling revenue deficit of the state which rose to Rs 1257.47 crore in 1994-95 from Rs 759 crore in 1990-91.
The CAG referred to the remarks of the ninth financial commission that huge revenue deficit incurred year after year in any economy, particularly a developing economy, reflected the violation of basic principles of public finance.
The report said in 1994-95, the state's revenue receipts recorded a rise of 50 per cent over 1990-91, while the revenue expenditure rose by 53 per cent and revenue deficit by 66 per cent during the corresponding period.
