By Our Reporter
SHILLONG: Despite tall claims by the State Government that the financial position of the State is sound, the Comptroller and Auditor General (CAG), in its financial report which was tabled in the House on Thursday, has stated that the financial health of the State has deteriorated during 2011-12 as compared to the previous four years.
As per the report, during the year 2011-12, the State has declined from being a revenue surplus state to that of a revenue deficit state. The State had a revenue surplus of Rs 247.74 crore in 2010-11 which has turned into revenue deficit of Rs 180.34 crore in 2011-12 due to disproportionate growth of revenue expenditure (20.49 per cent) vis-à-vis revenue receipt (9.25 per cent).
The CAG report stated that committed expenditures like salaries, pensions, interest payments and subsidies continued to consume a major share of revenue expenditure (47.41 per cent) in 2011-12.
“Expenditure pattern of the State Government needs correction in ensuing years and the State Government should initiate actions to restrict the components of non-plan revenue expenditure,” the CAG observed.
It also said that the revenue receipts in 2010-11 grew by 9.25 per cent over the previous years, adding that the tax revenue and non-tax revenue receipt exceeded normative assessment made by the 13th Finance Commission by 24.56 per cent and 23.33 per cent respectively.
According to the report, the percentage expenditure on collection of taxes was much higher than the all India average percentage of the preceding year.
“The State Government should explore the possibilities of mobilizing additional resources both through tax and non tax sources by expanding the tax base and rationalizing the user charge. The State should make efforts to increase tax compliance and reduce tax administration costs,” the CAG observed.
The report also mentioned that the overall revenue expenditure of the State increased by 114.53 per cent from Rs 2253.67 crore in 2007-08 to Rs 4834.81 crore in 2011-12.
“The fiscal deficit increased by three folds from Rs 341.39 crore in 2010-11 to Rs 1065.25 crore in 2011-12,” the report said, while adding that the primary deficit increased by over 823 per cent compared to the previous year.
The report also mentions that as large amount of money is being given directly by Government of India to State implementing agencies, the direct transfer from the Union Government to the State implementing agencies runs the risk of poor accountability.
“As such, the State Government may institute a mechanism for centralized monitoring of utilization of funds,” the report opined.
