CAG report:Telangana fiscal deficit, outstanding liabilities

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within limits in year endedMarch, 2019 Hyderabad, Mar 26 (PTI) Two important fiscal parameters, Fiscal Deficit and total outstanding liabilities, were within the limits in Telangana in the year ended March 2019, the CAG report, tabled in the state Legislative Assembly, said on Friday.

The report said there has been an increase in growth of Revenue Receipts (RR) and Revenue Expenditure (RE) during the years 2015-16 to 2018-19.

The growth rates of RR and RE have risen in 2018-19 and came close to the growth rate of GSDP.

'(i) Fiscal Deficit was 3.11 per cent of GSDP (Rs 8,65,688 crore) and within the limit of 3.25 per cent prescribed by 14th Finance Commission (XIV FC) and 3.5 per cent target set out in Medium Term Fiscal Policy Statement (MTFP) of the State Government as per FRBM Act;' it said.

'..and (ii) the total outstanding liabilities (Rs 1,96,963 crore) were 22.75 per cent of the GSDP, and within the limit of 23.33 per cent prescribed by XIV FC and also within 25 per cent as targeted by MTFP,' it said in its audit findings on the 'Fiscal situation of the state'.

Capital Expenditure (CE) has decreased in 2018-19 in comparison to preceding year as well as in comparison to GSDP, it said.

The State registered a Revenue Surplus of Rs 4,337 crore.The Fiscal Deficit was Rs 26,949 crore.

'Revenue Surplus, however, was overstated by Rs 9,481.97 crore and fiscal deficit was understated by Rs 217.86 crore due to misclassifications and non-contribution of Statutory Funds.' 'Effectively, there was a Revenue Deficit of Rs 5,144.97 crore and a Fiscal Deficit of Rs 27,166.86 crore,' it said.

The report mentioned audit findings under three chapters Finances of the state government, Financial Management and Budgetary Control and Financial Reporting.

Among various topics as part of 'Finances of the state government', the report said Outstanding Public Debt (Rs 1,65,164 crore) increased by 16 per cent in 2018-19 over preceding year, at a slightly higher pace than growth of GSDP.

Interest payments relative to Revenue Receipts were much higher at 12.41 per cent against the target of 8.37 per cent fixed by the XIV Finance Commission.

The maturity profile of outstanding public debt as of March 2019 showed that 46 per cent (Rs 76,262 crore) of total outstanding public debt is to be repaid over the next seven years, it said.

Talking about 'Capital Outlays: Incomplete Projects', the report said the state government has spent Rs 1,01,877 crore on capital projects during 2014-19, mainly on Irrigation and Flood Control.

Out of 26 ongoing projects, 20 projects were delayed (with three months to 11 years delay) and with cost escalation of Rs 1,87,848 crore.

An amount of Rs 1,00,494 crore was already spent on these incomplete projects so far, the report said.PTI SJR BN BN