Getting mortgage to invest back mortgage, Punjab oriented to own loans pitfall: CAG

Initiating the profile of your comptroller and auditor-general (CAG) to have 2014-15, principal accountant general Jagbans Singh said Punjab’s funds expenditure (non-productive) are on the rise since the resource expenditure (productive) had gradually declined. (Karun Sharma/HT Photo)

In spite of the significant states produced by brand new Unfortunate-BJP government, the principal accountant general showed an abysmal picture of Punjab finances if you’re providing a loud and you can clear warning – the state was lead to own a primary loans pitfall as the half of the monetary responsibility out of whopping Rs step 1.12-lakh crore must be paid down within the next 7 decades.

Opening about three of your four account of comptroller and auditor general (CAG) getting 2014-15, dominating accountant general Jagbans Singh said Punjab’s revenue expenditure (non-productive) are growing as the capital cost (productive) got slowly declined. He told you a large part of the costs is over towards the cost and you can repair the newest large loans, making little money into the condition to expend toward creativity factors.

Besides the condition of the latest profit, brand new profile put-out on the Monday including talked about numerous cases of misappropriation out of financing worth crores out of rupees, besides reflecting the new failing fiscal wellness of the personal industry units.

Brand new CAG also located a primary mismatch within bucks borrowing from the bank restrict (CCL) sought for because of the regulators when compared to the stock of cereals stored from the condition procurement enterprises

The newest money receipts increased at a yearly average speed away from 8.27% throughout the 2010-eleven so you can 2014-fifteen, while money expenses increased on an annual mediocre speed out-of 8.34%. The latest revenue expenses (non-productive) continued so you’re able to constitute a prominent part (93 to help you 95%) of your total expenses during this time period. The rise in funds receipts in 2014-15 (Rs cuatro,000 crore) was also due primarily to increase in grants out of bodies of Asia.

The latest money expenses (non-productive) improved because of the Rs 5,000 crore, while money expense (productive) enhanced because of the Rs 900 crore. The capital expense, however, was just 33% of forecasts made in the latest fiscal combination roadmap.

This new funds deficit rose to Rs 7,600 crore out of a shortage off Rs 5,3 hundred crore this season-11. The federal government don’t keep the money shortage within this maximum out of ‘no for every cent’ given in the financial integration roadmap.

People obligations increased to Rs step 1.12-lakh crore out-of Rs 75,100 crore this season-11. A major part of borrowings was utilised to have cost of prior to borrowings (47 to help you 70%) and money cost (20 to 39%). Only 8 so you’re able to 19% of borrowings was in fact used to own financing expenditure through the 2010-fifteen.

“In the event it routine continues on, Punjab would not be able to generate a lot more revenue so you’re able to provider the obligations plus it would online title loans AZ have no alternative but to improve the fresh new borrowings yearly to settle the new borrowings off before decades,” claims the newest declaration.

Authorities should pay off eleven% of their obligations anywhere between 1-three years, 20% anywhere between step 3-five years and you can 19% ranging from 5-seven ages. They suggests that condition should pay more than 50% of their debt next eight ages. “That is a stunning reputation plus the state was supposed for the a critical financial obligation installment reputation, that’s referred to as personal debt trap,” warns the newest declaration.

He said a large part of the expenditure try complete to the fees and upkeep the fresh significant loans, leaving almost no currency having creativity circumstances

Although the debt-GSDP (disgusting state domestic tool) proportion at thirty-two% is during the address fixed (38.7%) beneath the Financial Obligations and you can Finances Government Operate, the lent finance was generally used for redemption regarding past debts. Doing 23% of your revenue invoices were used so you can solution this new expense through the the modern 12 months.

Brand new Punjab government might have been indulging in a few really serious bluffing when you find yourself glossing along the account of one’s strength tools and grains procurement companies.

The latest CAG report placed in the brand new set-up into Saturday nights keeps showed that when you find yourself profile of one’s the main show and you will deal review of your own Punjab Condition Stamina Firm Restricted (PSPCL) and Punjab State Transmission Organization Restricted (PSTCL) have been “refurbished” to look better, the official procurement organizations excessive their outstanding arrears by a number of hundred or so crores.

While unbundling the fresh new Punjab State Energy Board, Punjab had place a financial load regarding Rs twenty five,one hundred thousand crore on the a couple brand new corporations–PSPCL and you will PSTCL–by-passing unfunded debts to them. Amazingly, the official bodies wanted to “refurbish the equilibrium sheet sets” of the inflating the equity money regarding a few entities because of the Rs step three,700 crore by the reflecting user contributions and you will grants and you can subsidies since collateral funding and you can and additionally lso are-respected house assets off Rs cuatro,900 crore whose ownership was not vested on the a couple of successor entities.

The newest CAG report told you the state procurement agencies (SPAs) demonstrated Rs sixteen,350 crore since the recoverable, of which Rs 11,eight hundred crore had been accredited because the skeptical. Additionally, there was a great mismatch regarding Rs 21,000 crore between the a great CC limitation and you will stock out-of foodgrains stored of the this type of enterprises.

Take to see of one’s suggestions out of 281 organizations out-of sales taxation/value-added taxation, condition excise, motor vehicles, items and you will individuals, forest invoices or other department organizations conducted by CAG demonstrated significantly less than evaluation/quick levy/loss of money aggregating Rs 2,five hundred crore from inside the more than thirty-five,one hundred thousand cases. The fresh divisions managed to get well simply Rs crore.

Except that the condition of the newest cash, this new account create for the Monday and talked about several instances of misappropriation out-of loans worthy of crores off rupees, besides showing the newest failing financial fitness of one’s public business equipment.