Himachal's fiscal deficit Rs 5,597 cr in 2019-20: CAG

Lalit Mohan

Tribune News Service

Dharamsala, December 16

The CAG report for 2019-20 that was tabled in the House yesterday stated that the fiscal deficit of Himachal stood at Rs 5,597 crore, which was 3.38 per cent of the GSDP. It was 3 per cent more than the target given by the 14th Finance Commission and Financial Responsibility and Budget Management (FRBM) Act 2003.Denied business, locals block Manali-Leh road at Solang

The primary surplus of Rs 510 crore in 2018-19 turned into primary deficit of Rs 1,363 crore in 2019-20. The projections made in the budget medium-term fiscal plan were not in line with the recommendations of the 14th Commission and actuals for 2019-20 were significantly at variance with the targets, the CAG report stated.

The report said from 2016-20, the state had continuously reported revenue surplus due to the increase in Central devolutions on the recommendations of the commission. However, the revenue surplus consistently declined from 2016-17 to 2019-20.

During 2019-20, total expenditure (Rs 36,362 crore) increased by Rs 1,869 crore (5.42 per cent) over 2018-19. The rate of growth of revenue expenditure had displayed a fluctuating trend over the past five years. The committed expenditure ranged between 68 per cent and 71 per cent of revenue expenditure, while it accounted for 65 per cent to 70 per cent of the revenue receipts during the five-year period, the report said.

During 2019-20, the capital expenditure of Rs 5,174 crore increased by Rs 591 crore, 13 per cent over the previous year (Rs 4,583 crore).

The report stated that the interest payment for the state government would be Rs 6,207 crore in the next five years up to 2024-25. It pulled up the state government for non-submission of utilisation certificates by various departments. A total of 2,482 utilisation certificates of various departments amounting to Rs 2,847.94 crore were pending as on March 2020. 

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