Chandigarh:Punjab’s revenue receipts increased from Rs 26,234 crore in 2011-12 to Rs 41,523 crore in 2015-16 at an annual average growth rate of 8.95 per cent, according to CAG report on State Finances for 2015-16.
“The revenue receipts increased from Rs 26,234 crore in 2011-12 to Rs 41,523 crore in 2015-16…,” said the Comptroller and Auditor General (CAG) report which was tabled in the Punjab Assembly on Wednesday.
The report pointed out that the revenue expenditure continued to constitute a dominant proportion — 85 to 95 per cent — of the total expenditure from 2011 to 2016. Total debt, excluding other liabilities, increased from Rs 64,161 crore in 2011-12 to Rs 1,03,195 crore in 2015-16.
“The debt/GSDP ratio exhibited reverse trend, as it increased from 0.62 in 2011-12 to 1.37 in 2015-16. There was no improvement in the ratio of interest payments to revenue receipts during 2011-16, which is indicative of no significant improvement in debt sustainability,” it said.
The revenue deficit rose to Rs 8,550 crore from Rs 6,811 crore in the year 2011-12. The fiscal deficit increased from Rs 8,491 crore in 2011-12 to Rs 17,360 crore in 2015-16.
The capital expenditure decreased by Rs 59 crore over the previous year. The capital expenditure incurred during 2015-16 was 62.98 per cent of the budget estimates “which indicates that asset creation was not given as much priority as intended in the budget estimates”.
The CAG report also highlighted that eleven projects scheduled for completion between 2008-09 and 2015-16 were “incomplete”.
“The expenditure of Rs 446.75 crore incurred on these incomplete projects is yet to yield the intended benefits. “Also, nine major irrigation projects caused the State government a loss of Rs 294.76 crore during 2015-16,” it said.
The return on investment from cooperative banks and societies and statutory corporations, Joint Stock Companies and government companies was only between 0.01 and 0.05 per cent during 2011-16, while the average rate of interest paid by Punjab government on its borrowings ranged between 7.79 and 8.35 per cent during the same period, it said.
The report also touched upon raising of loans in excess of net borrowing limit fixed by the central government. The Union Finance Ministry, Department of Expenditure, fixed (April 2015) the net borrowing ceiling of the state government for the financial year 2015-16 as Rs 11,914 crore and instructed the state government to ensure that its incremental borrowings from all sources remain within this ceiling.
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