Assam’s growth rate decreases, budget deficit, debts increased in 2019-20: CAG

Assam saw a decline in its growth rate as its budget deficit, outstanding debt and public debt increased dramatically at the end of 2019-2020, a Comptroller and Auditor (CAG) report on the finances of Assam said on Friday. the state for the period.

The report, tabled in the State Assembly on the last day of the winter session, said the state’s GSDP increased from Rs.227.959 crore in 2015-16 to Rs.351.318. Rs (flash estimates) in 2019-20 with compound Annual growth rate (CAGR) of 11.42 percent compared to the national CAGR of 10.37 percent.

However, the growth rate declined from 16.47% in 2015-16 to 11.22% in 2019-2020, he added.

He further stated that the state could only achieve a revenue surplus for two years in the five-year period from 2015-2016 to 2019-2020, and by containing the budget deficit below 3% of the budget. GDPD for three out of five years during the same period.

During the period 2019-2020, the budget deficit stood at 4.25% of the GSDP, which was significantly higher than the 3% limit set by the Assam Law on Fiscal Responsibility and Budget Management (AFRBM) .

The budget deficit, which increased by 212.10% from 4,779.06 crore in 2018-2019 to 14,915.80 crore rupees in 2019-2020, was the highest level of budget deficit since the enactment of the AFRBM law in 2005, according to the report.

He added that the outstanding state debt had rapidly increased from Rs 39,054.59 crore in 2015-2016 to Rs 72,256.52 crore in 2019-2020 as the debt / GSDP ratio rose. from 17.13% to 20.57% during the same period.

Public debt represented 75% of total government debt at the end of 2019-2020 and it grew at a rate of 25.88% during the year, the highest in the past five years, and also exceeded the MSRP growth rate (11.22%) during the year, according to the CAG report.

He also pointed out that the state government had repeatedly resorted to market loans in 2019-2020 despite large cash balances.

He further stated that the expenses incurred such as wages and salaries, pensions and interest payments have steadily increased over the five years 2015-2020.

Expenditures incurred in 2019-2020 represented 64.32% of total revenue and 62.23% of total expenditure.

Among the recommendations made by the oversight body, he said that the state government can make concrete efforts to increase the own resources of revenue in order to close the mismatch between revenue and expenditure, and reduce its deficit. budgetary.

It also recommended that the state government take steps to rationalize its expenditure from incurred revenue, use its cash balances for productive purposes, and reduce borrowing in the market.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

Comments are closed.