VIJAYAWADA: The Comptroller and Auditor General (CAG) of India, in a report deemed to have been tabled in the Andhra Pradesh Legislative Assembly on Wednesday, flagged that the State government had not disclosed the quantum of the source of proposed off-budget borrowing (OBBs) in its budget.
The State government informed Union Ministry of Finance of the off-budget liabilities of Rs 89.58 crore during 2023-24 and to the tune of Rs 32,903.84 crore to the end of March 31, 2024.
In the year 2023-24, as per the scrutiny of vouchers, the State government budgeted and expended an amount of Rs 10,037.31 crore towards assistance/grants on account of off-budget borrowings. It has been asked to confirm the same.
In addition to the off-budget borrowings, implicit subsidies to the tune of Rs 14,014.63 crore to the power utility on account of non-recovery of cost were also provided in the year 2023-24.
The report also mentioned that the government did not transfer the interest on the delay in releasing matching grants for the funds received from the Central government within the stipulated time to the Single Nodal Agency (SNA) as per norms.
‘AP recorded a revenue deficit of Rs 38,683 cr’
The CAG report observed that the State government during the financial year 2023-24 incorrectly booked an expenditure of Rs 54.33 crore under the capital section instead of the revenue section, which led to the understatement of revenue expenditure of the State.
Further, it pointed out that AP recorded a revenue deficit of Rs 38,683 crore, which is 2.68% of the GSDP, for the financial year 2023-24 in line with the target ratio of 3% or less. On the other hand, fiscal deficit for the same period stood at Rs 62,720 crore, accounting for 4.35% of GSDP --- much higher from the target ratio of 4% or less.
According to the CAG report, deficit indicators, revenue augmentation, and expenditure management are major yardsticks for judging the a government’s fiscal performance. The State Government was required to achieve certain fiscal targets by specified periods.