J-K posted revenue surplus of Rs 7,595 cr in 2017-18: CAG

Jammu and Kashmir had marked a revenue surplus of Rs 7,595 crore in 2017-18, while the total expenditure increased to Rs 51,294 crore, a CAG report said on Wednesday. The excess expenditure requiring regularisation of the state legislature was Rs 1,14,061.35 crore, as on March 31, 2018, the report said.

Jammu and Kashmir had marked a revenue surplus of Rs 7,595 crore in 2017-18, while the total expenditure increased to Rs 51,294 crore, a CAG report said on Wednesday.                 Its 'Own Tax Revenue' also showed a steady increase, particularly in tax on sale of goods and services and GST which increased from Rs 4,579 crore in 2013-14 to Rs 7,104 crore in 2017-18, the Comptroller and Auditor General of India (CAG) said in the report presented in Parliament. The report on the finances for the year ended March 31, 2018 revealed Jammu and Kashmir had a revenue surplus which increased from Rs 2,166 crore in 2016-17 to Rs 7,595 crore during 2017-18. "The Fiscal Deficit (FD) decreased from Rs 6,177 crore in 2016-17 to Rs 2,778 crore in 2017-18. The State had a Primary Deficit of Rs 1,610 crore in 2016-17 and Primary Surplus of Rs 1,885 crore during 2017-18," it said. The report said the growth rate of revenue receipts decreased from 17.31 per cent to 15.56 per cent, which was higher than the growth rate of GSDP during 2017-18. Share in Union taxes and duties and grants from the Union government together constituted 66.30 per cent of the total revenue receipts of the state during 2013-14, which increased to 71.35 per cent in 2017-18. "Total expenditure of the state increased from Rs 48,174 crore to Rs 51,294 crore. Capital Expenditure including Loans and Advances and Revenue Expenditure increased from Rs 8,362 crore to Rs 10,378 crore and Rs 39,812 crore to Rs 40,916 crore respectively during 2016-17 to 2017-18," the CAG said.               It said the cash balances were lesser than un-invested reserve funds amounting to Rs 2,164 crore, which means that the reserve funds were utilised for other than intended purpose. "The share of Revenue Expenditure in Total Expenditure during 2017-18 was 79.77 per cent which was lesser than that of 2016-17 which was 82.64 per cent. Revenue Expenditure (Rs 40,916 crore) was within the projection made by the State and more than the projection made by the 14 th FC (Rs 36,092 crore). This was mainly due to increase in salaries and pension payment," the report said.      It said the percentage of developmental capital expenditure to total expenditure increased from 12.18 per cent in 2013-14 to 18.62 per cent in 2017-18, while the share of development revenue expenditure to total expenditure decreased from 49.41 per cent to 46.84 per cent during the same years. "Committed expenditure on account of salary, pension, interest payment and subsidies constituted about 67 per cent during 2017-18, as against 63 per cent in the previous year. An amount of Rs 96.08 crore was invested during 2017-18 in such companies which have accumulated losses as per latest finalised accounts," it said.                 The report said the fiscal deficit was 1.97 per cent, which is within the target of 3 per cent of GSDP set under the FRBM Act.              With regard to Financial Management and Budgetary Control, the report said during 2017-18, in nine cases, against the approved provisions of Rs 19,852.10 crore, an expenditure of Rs 26,249.16 crore was incurred, thereby exceeding provision by Rs 6,397.06 crore. "This requires regularization from State Legislature," it said, adding there were persistent errors in budgeting, savings and excess expenditure.            The excess expenditure requiring regularisation of the state legislature was Rs 1,14,061.35 crore, as on March 31, 2018, the report said.                 During 2017-18, the CAG said a sum of Rs 2,395.97 crore of grants-in-aid, subsidy of Rs 152.00 crore, Rs 0.43 crore of stipend and scholarship, Rs 2.94 crore as salary and Rs 301.99 crore under operating cost of procurement or sale of essential commodities through PDS were disbursed under the capital major heads of expenditure, as against the requirement of being accounted under revenue heads.                 The report said there were delays in furnishing utilisation certificates against the loans and grants from various grantee institutions. "Abnormal delays were noticed in submission of annual accounts by some of the departmental commercial undertakings and Autonomous Bodies," it said.

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