Rajasthan's fiscal burden rise by 78% in five years
Jaipur, Apr 6 (UNI) Rajasthan's fiscal liabilities has increased by 78 per cent from Rs 33,874 crore in 2000-01 to Rs 60,134 crore in 2004-05.
The Comptroller and Auditor General of India report for 2004-05, which was placed on table of Vidhan Sabha here yesterday, also states Rajasthan's direct fiscal liabilities are growing at a much faster rate as compared to its rate of growth of Gross State Domestic Product (GSDP).
The GSDP growth of the state decreased from 22 per cent in 2003-04 to four per cent in 2004-05 and weighted interest rate was higher than the rate of growth of GSDP during the year indicating deterioration in fiscal position of the state.
Revenue receipts could cover only 74 per cent of total expenditure during the year, leaving the balance to be financed from borrowings.
Salaries, interest payments and pensions alone consumed 72 per cent of total revenue receipts of the state.
Interest payments increased steadily (55 per cent) during last five years primarily due to continued reliance on borrowings for financing the fiscal deficit.
Most of the borrowings (91 per cent) were spent on interest and payment of old borrowings during the year 2004-05, which the CAG report says is bound to push up the already high interest burden in future, leaving very little for development expenditure on the state.
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