VIJAYAWADA: The Comptroller and Auditor General (CAG) observed that the revenue expenditure increased by 26.45% and capital expenditure decreased by 55.75% in 2022-23 compared to 2021-22. In the State Finances Audit Report for 2022-23 tabled in the AP Legislative Assembly on Friday, the CAG found that public debt receipts increased by 16.55% and repayment of public debt increased by 11.11% in 2022-23.
“The State government spent Rs 7,244 crore only on capital account. This was 3.45% of the total expenditure in 2022-23. Capital expenditure was just 4.43% of the total borrowings. Thus, the borrowed funds were being used mainly for meeting current consumption and repayment of borrowings instead of capital creation/development activities. The gap between the total expenditure and total non-debt receipt of the State resulted in fiscal deficit. The fiscal deficit of the State increased to Rs 52,508 crore (3.98% of GSDP) in 2022-23 from Rs 35,467 crore (4.06% of GSDP) in 2018-19,” the CAG observed.
Revenue deficit increased from Rs 8,611 crore to Rs 43,487 crore in 2022-23 registering 405.02% increase over 2021-22. The increase was mainly due to increase in committed expenditure by Rs 15,451 crore, financial assistance to local bodies and other institutions by Rs 14,208 crore and subsidies by Rs 8,315 crore when compared to previous year. Fiscal deficit rose from Rs 25,013 crore in 2021-22 to Rs 52,508 crore in 2022-23, increasing by 109.92 per cent.
It was mentioned in the report that revenue receipts of the State increased by 4.79% and own tax receipts by 9.93%.