Assams growth rate dips fiscal deficit debts rise CAG
Guwahati Dec 24 PTI Assam has recorded a decline in its growth rate while its fiscal deficit outstanding debt and public debt have increased significantly at the end of 2019-20 a Comptroller and Auditor CAG report on state finance for the period said on Friday The report laid in the state Assembly on the last day of the Winter Session said the GSDP of the state grew from Rs 227959 crore in 2015-16 to Rs 351318 crore quick estimates in 2019-20 with Compounded Annual Growth Rate CAGR of 1142 per cent against the national CAGR of 1037 per cent However there was a decline in the growth rate from 1647 per cent in 2015-16 to 1122 per cent in 2019-20 it added It further said the state could achieve revenue surplus only during two years in the five year period from 2015-16 to 2019-20 and in containing the fiscal deficit below 3 per cent of GSDP in three out of five years in the same period During 2019-20 the fiscal deficit stood at 425 per cent of GSDP which was significantly more than the limit of 3 per cent fixed under the Assam Fiscal Responsibility and Budget Management AFRBM Act The fiscal deficit which increased by 21210 per cent from 477906 crore in 2018-19 to Rs 1491580 crore in 2019-20 was the highest level of fiscal deficit since the enactment of the AFRBM Act in 2005 the report said It further said outstanding debt of the state rapidly increased from Rs 3905459 crore in 2015-16 to Rs 7225652 crore in 2019-20 with the debtGSDP ratio increasing from 1713 per cent to 2057 per cent over the same period Public debt constituted 75 per cent of total state debt at the end of 2019-20 and it grew at the rate of 2588 per cent during the year the highest in the last five-year period and also outpaced the growth rate of GSDP 1122 per cent during the year the CAG report said It also pointed that the state government had taken recourse to market loans on several occasions during 2019-20 despite having large cash balances It further said committed expenditure like salary and wages pensions and interest payments steadily increased during the five year of 2015-20 The committed expenditure during 2019-20 was 6432 per cent of the total revenue receipts and 6223 per cent of total revenue expenditure Among the recommendations made by the audit body it said the state government can make concrete efforts to augment own resources of revenue to bridge the mismatch between revenue receipts and expenditure and reduce its fiscal deficit It also recommended the state government to take steps to rationalise its committed revenue expenditure and use its cash balances for productive purposes and reduce market borrowings PTI SSG RG RG
Guwahati Dec 24 PTI Assam has recorded a decline in its growth rate while its fiscal deficit outstanding debt and public debt have increased significantly at the end of 2019-20 a Comptroller and Auditor CAG report on state finance for the period said on Friday The report laid in the state Assembly on the last day of the Winter Session said the GSDP of the state grew from Rs 227959 crore in 2015-16 to Rs 351318 crore quick estimates in 2019-20 with Compounded Annual Growth Rate CAGR of 1142 per cent against the national CAGR of 1037 per cent However there was a decline in the growth rate from 1647 per cent in 2015-16 to 1122 per cent in 2019-20 it added It further said the state could achieve revenue surplus only during two years in the five year period from 2015-16 to 2019-20 and in containing the fiscal deficit below 3 per cent of GSDP in three out of five years in the same period During 2019-20 the fiscal deficit stood at 425 per cent of GSDP which was significantly more than the limit of 3 per cent fixed under the Assam Fiscal Responsibility and Budget Management AFRBM Act The fiscal deficit which increased by 21210 per cent from 477906 crore in 2018-19 to Rs 1491580 crore in 2019-20 was the highest level of fiscal deficit since the enactment of the AFRBM Act in 2005 the report said It further said outstanding debt of the state rapidly increased from Rs 3905459 crore in 2015-16 to Rs 7225652 crore in 2019-20 with the debtGSDP ratio increasing from 1713 per cent to 2057 per cent over the same period Public debt constituted 75 per cent of total state debt at the end of 2019-20 and it grew at the rate of 2588 per cent during the year the highest in the last five-year period and also outpaced the growth rate of GSDP 1122 per cent during the year the CAG report said It also pointed that the state government had taken recourse to market loans on several occasions during 2019-20 despite having large cash balances It further said committed expenditure like salary and wages pensions and interest payments steadily increased during the five year of 2015-20 The committed expenditure during 2019-20 was 6432 per cent of the total revenue receipts and 6223 per cent of total revenue expenditure Among the recommendations made by the audit body it said the state government can make concrete efforts to augment own resources of revenue to bridge the mismatch between revenue receipts and expenditure and reduce its fiscal deficit It also recommended the state government to take steps to rationalise its committed revenue expenditure and use its cash balances for productive purposes and reduce market borrowings PTI SSG RG RG
