The CAG expressed concern over J-Okay authorities’s motion of utilizing borrowed funds for assembly present consumption and compensation of curiosity on excellent loans.
“Utilizing borrowed funds for assembly present consumption and compensation of curiosity on excellent loans shouldn’t be sustainable,” it mentioned, stressing that borrowed funds ought to ideally be used to fund capital creation and developmental actions.
“Excellent total debt as on 30 October 2019 was Rs 83,536 crore. The share of complete debt compensation was 82.68 per cent of the overall debt receipt throughout 1st April 2019, to thirtieth of October 2019, leading to solely 17.32 per cent complete debt receipt out there,” newest CAG report mentioned.
The CAG identified that authorities has inside debt amounting to Rs 45,429 crores, which represent 54.38 per cent of complete debt, whereas loans from authorities of India quantities to 1,237 crores (1.48 per cent) and liabilities on public account quantities to Rs 36,870 crores (44.14 per cent).
As per the CAG report, the fiscal deficit throughout 1 April 2019 to 30 October 2019 was Rs 4,728 crore. It may be seen that the market borrowings and extra of receipt over funds beneath small saving provident fund is main contributor in assembly J-Okay’s Fiscal deficit.
The report additional identified that in the course of the interval first of April 2019 to 30 October 2019, the online debt out there was Rs 1,089 crore. “This was 5.79 per cent of public debt receipt of Rs 18,819 crore in the course of the interval”, it mentioned.
Throughout this era, the debt compensation to debt receipts was 83.25 per cent leading to solely 16.75 per cent of debt receipts being out there with the federal government, it added.
The speed of progress of excellent debt is mirrored from statistics as excellent public debt in the beginning of the yr 2019-20 was Rs 43,513 crore, which elevated to Rs 46,666 crore on the finish of 30 October 2019 displaying improve of seven.25 per cent, it mentioned.
The share of curiosity fee to income receipt present that in 2019-20, the proportion of curiosity fee to income receipt was 6.87 per cent, it mentioned.
The report mentioned that debt administration is the method of creating and executing a technique for managing the Authorities’s debt with the intention to elevate the required quantity of funding, obtain its threat and value goals, and to fulfill another sovereign debt administration targets that the federal government could have set by means of enactment or another annual finances bulletins.
It mentioned that the overall debt of the State Authorities sometimes constitutes of Inner debt of the State — market loans, methods and means advances from RBI, particular securities issued to nationwide small financial savings fund and loans from monetary establishments, and so forth., loans and advances from the central authorities, and Public Account Liabilities.