Delivering loan to spend back mortgage, Punjab oriented getting financial obligation pitfall: CAG

Initiating the new profile of your own comptroller and auditor-general (CAG) to own 2014-15, principal accountant standard Jagbans Singh told you Punjab’s funds expenses (non-productive) is actually growing since investment expenditure (productive) got slowly refuted. (Karun Sharma/HT Photos)

Regardless of the high says from brand new Sad-BJP regulators, the principal accountant standard shown a keen abysmal picture of Punjab funds if you are giving a loud and you will obvious alerting – the state is oriented for a major financial obligation trap while the half of of your monetary accountability away from whopping Rs 1.12-lakh crore must be paid next 7 many years.

Releasing around three of your own five profile of your own comptroller and you may auditor standard (CAG) having 2014-fifteen, principal accountant general Jagbans Singh told you Punjab’s funds cost (non-productive) was on the rise while the financial support cost (productive) had gradually declined. He said a corner of your costs try over with the fees and you will maintenance the fresh hefty finance, making hardly any money into the county to invest into invention affairs.

Apart from the condition of the new finances, new reports put-out to your Friday and additionally discussed several cases of misappropriation off money worthy of crores from rupees, in addition to reflecting the brand new a failure fiscal health of your personal business units.

The fresh CAG also discover a major mismatch between the bucks borrowing from the bank restriction (CCL) needed by bodies in comparison to the stock out of grains kept from the condition procurement providers

The brand new revenue receipts became at an annual average rate regarding 8.27% throughout the 2010-eleven so you’re able to 2014-fifteen, whereas funds expenditure increased at an annual average rate out-of 8.34%. The new revenue expense (non-productive) continued to compensate a dominant section (93 so you can 95%) of your own full expense during this time. The rise inside cash invoices for the 2014-fifteen (Rs cuatro,100000 crore) was also due mainly to escalation in grants of government off Asia.

The fresh new cash costs (non-productive) increased by the Rs 5,000 crore, whereas investment expense (productive) enhanced by Rs 900 crore. The main city expenses, but not, was only 33% of one’s forecasts produced in this new fiscal consolidation roadmap.

Brand new funds deficit flower so you can Rs 7,600 crore of a shortage off Rs 5,3 hundred crore in 2010-11. Government entities failed to contain the revenue shortage contained in this limitation away from ‘zero per cent’ given throughout the fiscal combination roadmap.

People obligations risen to Rs step 1.12-lakh crore out of Rs 75,100000 crore in 2010-11. A primary percentage of borrowings are utilised for payment of prior to borrowings (47 to help you 70%) and you can money cost (20 in order to 39%). Merely 8 so you can 19% of one’s borrowings were utilised to possess resource expense through the 2010-fifteen.

“Whether it practice goes on, Punjab would not be in a position to create extra funds in order to service the personal debt also it might have no solution however, to increase the brand new borrowings from year to year to settle this new borrowings regarding earlier age,” claims the new report.

Regulators must repay eleven% of its loans between step one-three years, 20% ranging from 3-5 years and you can 19% between 5-7 many years. They implies that condition has to pay-off more than fifty% of the obligations within the next 7 ages. “That is an alarming reputation additionally the state are going to your a significant personal debt payment standing, which is known as loans trap,” alerts the fresh new report.

He told you a corner of the costs is actually done on payment and you can servicing the fresh new large financing, making little currency for invention products

Although the personal debt-GSDP (disgusting state home-based device) proportion on thirty two% is when you look at the address repaired (38.7%) beneath the Fiscal Obligation and you may Finances Government Work, the lent finance was mostly useful redemption of prior expenses. Around 23% of your money invoices were utilized to help you solution brand new costs during the the present day season.

The newest Punjab regulators has been indulging in some really serious bluffing when you are glossing along the account of one’s electricity utilities and you will cereals procurement agencies.

The latest CAG declaration placed in the latest system with the Saturday nights enjoys revealed that whenever you are membership of the a portion of the overall performance and you may deal audit of one’s Punjab County Stamina Corporation Limited (PSPCL) and you will Punjab County Alert Business Limited (PSTCL) was indeed “refurbished” to seem most readily useful, the state procurement agencies exorbitant the a fantastic arrears by several hundred or so crores.

While you are unbundling the new Punjab State Strength Board, Punjab had put a monetary burden from Rs twenty-five,000 crore for the two the brand new firms–PSPCL and PSTCL–by-passing unfunded debts onto her or him. Interestingly, the official authorities sought for to help you “refurbish the harmony sheets” because of the inflating the equity money regarding the a couple of entities from the Rs step 3,700 crore of the showing user benefits and you will offers and you will subsidies since the equity capital and you may plus re also-appreciated property property away from Rs 4,900 crore whoever ownership was not vested on two replacement entities.

The new CAG statement said the official procurement providers (SPAs) demonstrated Rs sixteen,350 crore because recoverable, from which Rs 11,400 crore got licensed because skeptical. Additionally, you will find a mismatch from Rs 21,000 crore between your a great CC restrict and stock out of foodgrains kept because of the these types of firms.

Attempt see of one’s suggestions away from 281 workplaces off conversion tax/value added taxation, state excise, cars, merchandise and you may passengers, forest receipts or any other departmental practices held by the CAG shown around review/small levy/loss of money aggregating Rs 2,500 crore in more 35,100 circumstances. The brand new divisions managed to recover just Rs crore.

Besides the state of the new money, the brand new account put-out into the Monday in addition to discussed numerous instances of misappropriation out-of finance really worth crores out-of rupees, in addition to highlighting the a deep failing fiscal wellness of your own personal business tools.