The comptroller and auditor general (CAG) suspects that grants of nearly Rs 26,000 crore did not reach beneficiaries of government schemes in the state in 2021-22, according to a recent report. The report highlighted that utilisation certificates (UCs) for grants or aid received from the state or the Centre are to be submitted in 12 months, before applications for further grants are moved. However, UCs worth Rs 25,759 crore are still pending. The major defaulters include departments related to urban development, planning, rural development and water conservation, and industries, energy, and labour.
Furthermore, the CAG report shed light on the increasing liabilities of the state. It stated that the liabilities rose by Rs 54,459 crore in a year, reaching Rs 6,60,754 crore in 2022-23 from Rs 6,06,295 crore in the previous fiscal year. The public debt, which includes the internal debt of the state and loans and advances from the Centre, also increased by Rs 49,907 crore during the same period. The per person liability or debt for the state now stands at Rs 50,209.
Despite the rise in liabilities and debt, the report highlighted that the percentage of liabilities to the gross state domestic product remained at 19%, similar to the previous fiscal year. This can be attributed to the increase in state revenue by Rs 62,242 crore (23%) in 2022-23 compared to the previous year. The increase in revenue was primarily due to higher receipts under state GST, sales and trade taxes, electricity duty, excise, income tax, vehicle tax, and taxes collected by local bodies and other public service undertakings.
When analyzing the state’s financial situation, the CAG pointed out that there was a revenue deficit of Rs 1,937 crore and a fiscal deficit of Rs 67,602 crore in 2022-23. These deficits accounted for 14% of the total expenditure. The deficit was mainly covered by relying on public debt, with Rs 49,907 crore being used, along with a net increase in the public account by Rs 4,923 crore and a decrease in the cash balance by Rs 12,772 crore. The report further mentioned that around 33% of revenue receipts, amounting to Rs 4,05,678 crore, were spent on committed expenditures such as salaries, interest payments, and pensions.
The CAG’s report raises concerns about the non-disbursement of grants to the beneficiaries of government schemes in the state. It also highlights the significant increase in liabilities and debt, as well as the deficits in revenue and fiscal aspects. Despite these challenges, the state’s revenue has shown promising growth, primarily driven by increased receipts from various sources. The report serves as a wake-up call for the concerned departments and emphasizes the need for efficient utilization of grants and improved financial management to ensure the rightful implementation of government schemes.
