CAG report: C'garh debt at the end of 2019-20 is Rs 78.7k cr

The Comptroller and Auditor General of India CAG has pointed out that the outstanding debt of the Chhattisgarh government was Rs 78,712 crore at the end of 2019-20 and said using borrowed funds for meeting current consumption and repayment of interest on outstanding loans was not sustainable in the long run.The CAG report on state finances for the year ended March 31, 2020, which was tabled in the Assembly on Friday, also said borrowed funds should be utilised to create assets to stimulate growth.The total outstanding debt of the state government at the end of 2019-20 was Rs 78,712 crore.


PTI | Raipur | Updated: 30-07-2021 20:02 IST | Created: 30-07-2021 20:02 IST
CAG report: C'garh debt at the end of 2019-20 is Rs 78.7k cr
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The Comptroller and Auditor General of India (CAG) has pointed out that the outstanding debt of the Chhattisgarh government was Rs 78,712 crore at the end of 2019-20 and said using borrowed funds for meeting current consumption and repayment of interest on outstanding loans was not sustainable in the long run.

The CAG report on state finances for the year ended March 31, 2020, which was tabled in the Assembly on Friday, also said borrowed funds should be utilised to create assets to stimulate growth.

''The total outstanding debt of the state government at the end of 2019-20 was Rs 78,712 crore. Borrowed funds should ideally be used to fund capital creation and developmental activities. Using borrowed funds for meeting current consumption and repayment of interest on outstanding loans is not sustainable in the long run and would impact creation of assets,” the report said.

It also said the state's revenue expenditure (RE) increased by 14.08 per cent in 2019-20 compared to the previous financial year, whereas capital expenditure (CE) decreased by 3.79 per cent during the same period, adding that RE increased mainly due to increase in salaries and wages, pensions, interest payments and subsidies.

It said CE showed a significant decrease of Rs 1,098 crore in 2018-19 and Rs 337 crore in 2019-20.

The state government registered a nominal decrease of 1.88 per cent in revenue receipts during 2019-20 compared to the previous year, while own tax revenue and non-tax revenue increased by 3.22 and 3 per cent respectively and could not achieve the level anticipated in budgetary projections. The CAG report said Chattisgarh continued to be dependent on the Centre with 53 per cent of the revenue coming from the 'State Share of Union Taxes and Duties and Grants-in-aid'.

''Debt repayment increased significantly in 2019-20 as compared to 2018-19 and total debt receipts also increased by Rs 5,217.43 crore when compared to 2018-19. The state government should explore various measures to mobilise additional resources to improve its fiscal parameters in line with the targets specified by the Finance Commission and its own FRBM (Fiscal Responsibility and Budget Management Act) projections,'' the report stressed.

It also said the state government should review and analyse the reasons for delays in capital projects and take efforts to complete them quickly.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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