The CAG also pointed out that capital expenditure did not increase commensurate with the growth of the GSDP in the state.
Published Aug 07, 2023 | 7:00 AM ⚊ Updated Aug 07, 2023 | 1:33 PM
According to the CAG, Telangana's excess expenditure was mainly under fiscal administration, planning, survey, and statistics. (Creative Commons/Representational image)
The Comptroller and Auditor General (CAG) report on the Telangana government’s finances during 2021-22 has come across as a shocker.
In its report, tabled in the Assembly on Sunday, 6 August, the CAG said that the government incurred a net excess expenditure of ₹75,053 crore, which was 29 percent more than the estimates, in 11 grants or appropriations, against the approved budget of ₹2,55,017 crore.
The CAG also pointed out that capital expenditure did not increase commensurate with the growth of the GSDP in the state.
According to the CAG, the excess expenditure was mainly under fiscal administration, planning, survey, and statistics.
The government did not spend less than what had been budgeted for the construction of houses and the industries department.
The expenditure under fiscal administration, planning, survey, and statistics was ₹76,117 crore (including ₹67,274 crore on account of repayment of Ways and Means Advances) against the budget allocation of ₹9,273 crore, exceeding the budget by ₹66,844 crore (720 percent).
The excess expenditure occurred mainly under grants to Major and Medium Irrigation, Medical and Health, and Panchayat Raj Departments.
Of these, the expenditure under Medical and Health was ₹509 crore against a budget allocation of ₹382 crore, exceeding the budget by ₹128 crore (33 percent).
Referring to fund flow, the CAG said Telangana had a revenue deficit of ₹9,335 crore and a fiscal deficit of ₹46,639 crore as on 31 March, 2022.
The fiscal deficit was met from net of borrowings and other liabilities: Public debt (₹42,936 crore), public account (₹3,773 crore) and cash balance (a negative ₹70 crore).
Around 50 percent of the revenue receipts (₹1,27,468 crore) of the state government was spent on committed expenditures like salaries (₹30,375 crore), interest payments (₹19,161 crore), and pensions (₹14,025 crore).
Special Drawing Facility or Ways and Means Advances are taken from the Reserve Bank of India (RBI) to maintain the agreed minimum cash balance the state government was required to keep.
During 2021-22, the state government availed Special Drawing Facility of ₹9,636 crore for 289 days, and Ways and Means Advances of ₹34,969 crore for 259 days.
During the 2021-22 fiscal year, an overdraft of ₹22,669 crore was availed for 100 days.
The state government had a revenue surplus up to 2018-19, which has come down to a revenue deficit of ₹9,335 crore (₹22,298 crore deficit in 2020-21) and a fiscal deficit of ₹46,639 crore (₹49,038 crore in 2020-21).
These are 0.81 percent and 4.06 percent of the GSDP, respectively.
The fiscal deficit constituted 27 percent of total receipts (₹1,74,155 crore).
According to CAG, the estimated revenue of the state was ₹2,21,687 crore while the income was ₹1,74,154 crore.
The estimated revenue deficit was ₹6,744 crore, but it increased to ₹9,335 crore.
Revenue in the form of taxes was ₹1,09,992 crore, while the grants received from the Centre were ₹8,619 crore.
