Launching the profile of one’s comptroller and auditor general (CAG) to have 2014-fifteen, prominent accountant standard Jagbans Singh said Punjab’s cash expense (non-productive) are growing because investment costs (productive) had slowly refuted. (Karun Sharma/HT Pictures)
Inspite of the tall states from the newest Sad-BJP government, the principal accountant standard displayed an abysmal image of Punjab money when you are issuing a noisy and you will obvious caution – the official is on course to have a major loans pitfall since half of of financial responsibility of whopping Rs step 1.12-lakh crore must be repaid in the next eight age.
Opening three of one’s four account of your own comptroller and you may auditor general (CAG) to possess 2014-fifteen, dominating accountant general Jagbans Singh told you Punjab’s money expenditure (non-productive) are on the rise given that capital expenses (productive) had slowly refuted. He said a corner of the cost try complete toward fees and you will repair brand new large loans, leaving very little currency toward state to expend with the advancement affairs.
Except that the state of the funds, this new reports create to the Tuesday including discussed multiple cases of misappropriation away from fund really worth crores regarding rupees, besides reflecting this new a failure financial health of the personal sector units.
The fresh CAG as well as found a major mismatch between your dollars borrowing restrict (CCL) sought because of the authorities in comparison to the stock out of grains held because of the state procurement providers
New funds invoices increased during the a yearly average rate out-of 8.27% during 2010-eleven to 2014-fifteen, while funds cost expanded at an annual mediocre price of 8.34%. The money expense (non-productive) continued so you can compose a prominent bit (93 to 95%) of your overall expense during this time. The increase inside funds invoices from inside the 2014-fifteen (Rs cuatro,one hundred thousand crore) has also been due primarily to increase in provides regarding regulators regarding India.
The brand new money costs (non-productive) improved because of the Rs 5,100000 crore, while investment expenses (productive) increased of the Rs 900 crore. The administrative centre cost, however, was only 33% of projections built in the latest financial consolidation roadmap.
The new cash shortage flower to Rs seven,600 crore away from a shortage out of Rs 5,300 crore this present year-11. Government entities didn’t keep the funds shortage contained in this limitation off ‘no for every single cent’ prescribed about financial combination roadmap.
Individuals loans increased to Rs step 1.12-lakh crore out-of Rs 75,one hundred thousand crore this present year-11. A primary percentage of borrowings is utilised getting installment of earlier borrowings (47 so you’re able to 70%) and you can revenue costs (20 so you can 39%). Simply 8 to 19% of one’s borrowings was basically utilised for investment expenses through the 2010-15.
“Whether or not it habit continues, Punjab would not be in a position to generate most cash so you’re able to solution its obligations and it could have zero solution but to raise brand new borrowings from year to year to settle the brand new borrowings from prior to many years,” states the new declaration.
Bodies has to pay back eleven% of the loans between step 1-36 months, 20% anywhere between 3-5 years and 19% ranging from 5-eight age. They signifies that state should pay off over 50% of its debt within the next seven ages. “This might be a surprising status and also the county is actually heading towards the a significant personal debt payment reputation, that’s referred to as personal debt trap,” warns the brand new report.
He told you a corner of one’s expenditure try complete towards fees and you will repair the new hefty money, making little currency to have advancement things
Although personal debt-GSDP (disgusting condition home-based tool) ratio from the 32% is within the target fixed (38.7%) within the Financial Duty and you may Finances Management Operate, yet the lent loans was basically mainly employed for redemption out-of earlier costs. As much as 23% of cash invoices were used to solution the brand new expense throughout the current seasons.
Brand new Punjab authorities might have been indulging in some significant bluffing if you are glossing over the profile of one’s strength utilities and you will cereals procurement providers.
New CAG statement listed in the fresh assembly with the Saturday nights provides showed that if you find yourself account of your own area of the performance and you will purchase audit of your own Punjab County Electricity Enterprise Restricted (PSPCL) and you may Punjab Condition Signal Company Restricted (PSTCL) were “refurbished” to look most readily useful, the state procurement enterprises excessive their a good arrears by a number of hundred or so crores.
If you find yourself unbundling the fresh new Punjab Condition Fuel Panel, Punjab got set a financial burden out of Rs 25,100000 crore to the one or two the enterprises–PSPCL and you will PSTCL–by-passing unfunded obligations to them. Surprisingly, the official bodies sought for to help you “refurbish its balance sheet sets” from the inflating its security money on the a couple of entities because of the Rs step three,700 crore by the showing user contributions and you may has and subsidies because guarantee financing and you can also re also-appreciated homes assets out-of Rs 4,900 crore whose possession wasn’t vested from the a few replacement entities.
Brand new CAG statement told you the official procurement companies (SPAs) displayed Rs sixteen,350 crore due to the fact recoverable, from which Rs 11,eight hundred crore was actually qualified since the doubtful. Moreover, there’s a beneficial mismatch out-of Rs 21,100000 crore between your a fantastic CC restrict and inventory out of foodgrains held of the this type of companies.
Decide to try take a look at of the details regarding 281 offices regarding conversion taxation/value added taxation, condition excise, motor vehicles, items and you will people, forest receipts or any other departmental offices used from the CAG presented not as much as testing/quick levy/death of revenue aggregating Rs 2,five hundred crore in more thirty-five,one hundred thousand circumstances. The brand new departments was able to recover merely https://americashpaydayloan.com/title-loans-ct/ Rs crore.
Other than the state of new funds, brand new records put out to your Friday plus pointed out several instances of misappropriation out-of financing well worth crores regarding rupees, as well as reflecting the latest weak fiscal wellness of your public field systems.