Bringing mortgage to pay back loan, Punjab on course having debt pitfall: CAG

Unveiling the fresh new account of the comptroller and you will auditor general (CAG) to have 2014-fifteen, dominant accountant general Jagbans Singh said Punjab’s revenue cost (non-productive) is actually on the rise since capital expense (productive) got gradually rejected. (Karun Sharma/HT Photo)

Regardless of the high states created by the new Sad-BJP bodies, the main accountant standard displayed an abysmal picture of Punjab cash when you’re providing a noisy and you may clear caution – the state is actually went having a major obligations trap because half of one’s economic liability from whopping Rs step 1.12-lakh crore has to be paid off next eight ages.

Launching three of your own four records of the comptroller and auditor general (CAG) for 2014-fifteen, principal accountant general Jagbans Singh said Punjab’s revenue expense (non-productive) are rising as the financing costs (productive) got gradually declined. He said a corner of your costs was over on the payment and you will servicing the brand new large loans, leaving very little currency to the condition to blow into advancement activities.

Except that the state of the new profit, this new profile released for the Monday as well as mentioned several cases of misappropriation out of financing value crores of rupees, and highlighting this new failing financial wellness of the public business tools.

The new CAG plus discover a primary mismatch between the cash borrowing limitation (CCL) sought by government when compared to the stock off grains kept by the condition procurement organizations

This new money invoices expanded at the an annual mediocre speed out-of 8.27% throughout the 2010-eleven to help you 2014-fifteen, whereas money expenditure became during the a yearly mediocre price regarding 8.34%. The cash expenditure (non-productive) went on to help you constitute a dominant portion (93 to help you 95%) of the total expense during this period. The rise inside the funds receipts when you look at the 2014-fifteen North Carolina title loans (Rs 4,one hundred thousand crore) has also been due mainly to increase in provides off authorities from Asia.

New cash cost (non-productive) improved of the Rs 5,one hundred thousand crore, whereas investment expense (productive) enhanced of the Rs 900 crore. The main city expense, not, was just 33% of the forecasts manufactured in the fresh fiscal combination roadmap.

The newest revenue deficit rose in order to Rs eight,600 crore off a deficit of Rs 5,3 hundred crore this year-11. The government don’t contain the revenue deficit inside restriction regarding ‘no for each cent’ prescribed about financial combination roadmap.

The public loans risen to Rs 1.12-lakh crore out-of Rs 75,100000 crore this year-11. A primary part of borrowings is utilised for cost regarding prior to borrowings (47 to help you 70%) and revenue expense (20 so you can 39%). Just 8 in order to 19% of your own borrowings have been used having money expenditure during the 2010-fifteen.

“Whether it practice continues on, Punjab wouldn’t be capable build extra revenue to solution their personal debt therefore will have zero alternative however, to increase the latest borrowings yearly to repay the brand new borrowings out-of prior to years,” claims the declaration.

Authorities needs to pay back eleven% of its loans ranging from step one-36 months, 20% between 3-five years and 19% anywhere between 5-7 many years. They signifies that county has to pay back more than fifty% of their debt within the next 7 years. “This might be a stunning reputation together with county is supposed for the a serious debt payment status, that’s referred to as obligations pitfall,” warns the latest report.

He said a large part of your expenditure is over on installment and you may maintenance the brand new large fund, making hardly any money getting creativity things

Even though the personal debt-GSDP (terrible state home-based unit) proportion on thirty two% try in address fixed (38.7%) in Fiscal Obligation and you will Budget Administration Operate, yet the borrowed fund was mainly used for redemption from early in the day expenses. Doing 23% of one’s revenue receipts were used so you’re able to service the brand new debts through the the current 12 months.

The new Punjab regulators has been indulging in some really serious bluffing when you find yourself glossing along the accounts of your energy tools and cereals procurement companies.

The fresh new CAG statement listed in the system into the Monday evening provides indicated that whenever you are accounts of your a portion of the show and you will purchase audit of one’s Punjab Condition Energy Organization Limited (PSPCL) and you will Punjab Condition Transmission Corporation Restricted (PSTCL) were “refurbished” to appear greatest, the state procurement businesses excessive their a great arrears by several hundred or so crores.

If you’re unbundling the fresh new Punjab Condition Electricity Panel, Punjab got put a financial burden from Rs twenty five,100000 crore into the a couple of the latest businesses–PSPCL and PSTCL–by-passing unfunded obligations to him or her. Surprisingly, the official government wanted to “refurbish its balance sheet sets” by inflating their equity investment about a few agencies because of the Rs step three,700 crore by the highlighting user contributions and grants and you can subsidies because security resource and you will and additionally re-respected home assets of Rs 4,900 crore whose control wasn’t vested in the a couple of successor entities.

Brand new CAG report told you the official procurement organizations (SPAs) displayed Rs sixteen,350 crore as the recoverable, where Rs 11,eight hundred crore was actually certified while the suspicious. Moreover, there clearly was a beneficial mismatch from Rs 21,100 crore between your a great CC restriction and you may stock of foodgrains stored by these organizations.

Take to look at of your own information out-of 281 offices out-of conversion income tax/value-added taxation, county excise, motor vehicles, services and products and you can individuals, tree invoices or any other department offices held because of the CAG showed significantly less than comparison/short levy/loss of cash aggregating Rs dos,500 crore in the more thirty-five,100000 instances. The new divisions were able to get well just Rs crore.

Except that the state of this new earnings, the latest accounts put-out towards Tuesday also mentioned multiple instances of misappropriation away from funds well worth crores regarding rupees, along with reflecting the failing financial fitness of your public markets devices.


Publicado el 25/3/2022 Categoría better title loans.

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