Debt ridden Himachal’s internal loan aggregated to Rs 10,752 crore in 2014-15: CAG
Growth in capital expenditure has not kept pace with the steady growth of GSDP since 2010-11 onwards and has almost remained stagnated
SHIMLA- At a time when opposition BJP is attacking Congress government in Himachal Pradesh for throwing state into debt trap, Comptroller and Auditor General (CAG) report has revealed that during 2014-15, the state government’s total internal debt aggregated to Rs 10,752 crore. The government also received Rs 125 crore from the Centre as loans and advances, it added.
According to the report, 10 loans amounting to Rs 2,345 crore were raised from the open market at interest rates varying from 8.08% to 9.63%.
The same are redeemable in the year 2024-25. The state government raised Rs 444 crore from financial institutions and Rs 1,102 crore from the National Small Savings Fund (NSSF), the report said.
An amount of Rs 6,860 crore was obtained from Wage and Means Advances (Rs 4193 crore from Normal Ways and Means Advances and Rs 2667 crore Overdrafts ) from the Reserve Bank of India.
It further said that around 76% of the total revenue expenditure was incurred on committed expenses namely on Salaries and Wages (Rs 8418 crore), interest payment (Rs 2849 crore) and pensions (Rs 2914 crore) and subsidies (Rs 801 crore) which is the committed liability of the state government.
CAG report said that uncommitted revenue expenditure available for implementation of various schemes has decrease drastically during the year 2014-15. The total revenue expenditure increased by 42% from Rs 13946 crore in 2010-11 to Rs 19787 crore in 2014-15 and committed revenue expenditure increased by 52% over the same period.
Stating that capital expenditure is essential if the growth process is to be sustained, Report said that capital disbursements during 2014-15 amounting for Rs 2473 crore (3% of GSDP) were excess than Budget Estimates by Rs 521 crore (Excess disbursement of Rs 506 crore under plan expenditure and excess expenditure of Rs 15 crore under non-plan).
It added that growth in capital expenditure has not kept pace with the steady growth of GSDP since 2010-11 onwards and has almost remained stagnated.
Photo: Financial Express