The Comptroller and Auditor General of India (CAG) report revealed that as of March 31, 2023, public sector undertakings in the state had taken loans of Rs 1.28 lakh crore, but not shown in the budget. It said that decisions have been taken to repay it through the budget itself, even if it is not credited to the Consolidated Fund.
The CAG report on financial matters, budget management and accounts for the financial year ended 2023 was presented in the AP Assembly on Friday. The CAG said that the government has given guarantees for loans worth Rs 20,872 crore from various corporations.
It said that the government was due Rs 2015 crore as commission on the guarantees, but none of it has been collected. The CAG stated in the report that the government’s debt in GSDP has increased to 27.05 percent.
The CAG revealed that this indicates that debt consolidation is not possible in the near future. The CAG clarified that revenue receipts have declined significantly in the financial year 2022-23. It said that revenue expenditure for the same year increased by 26.45 percent. The CAG revealed that the revenue deficit increased by 405.02 percent from Rs. 8611 to Rs. 43,487 crore compared to 2022.
The CAG said that the increase in mandatory expenditure by Rs. 15,451 crore, local bodies and other institutions by Rs. 14,208 crore and subsidies by Rs. 8315 crore was the main reason for the huge increase in revenue deficit. The CAG revealed that the fiscal deficit increased by 109 percent from Rs. 25,013 to Rs. 52,508 crore compared to 2021-22.
The CAG noted that there was a huge difference between revenue and expenditure. It said that the revenue deficit increased significantly due to expenditure incurred in excess of revenue. It explained that only Rs. 7244 crore was spent under capital expenditure for the year 2022-23.
The CAG has stated that the total subsidy for the financial year ended March 31, 2023 was Rs. 23,004 crore. The CAG stated that 88 percent of the subsidies were electricity subsidies.
The CAG has clarified that the government’s debt, including extra-budgetary loans, is 41.89 percent of the GSDP. It has been revealed that this indicates a serious burden on the state’s economy.