CAG points out increased fiscal deficit for Meghalaya
Shillong, May 15 (UNI) There was shortage of funds for infrastructure support and other revenue generating investment in Meghalaya and the fiscal deficit of the state increased substantially during 2000-2005, the Comptroller and Auditor General (CAG) said in its report today.
The fiscal deficit averaged Rs 229 crore during the period, while the balance from current revenues of the state continued to be negative, resulting in shortage of funds, it said.
During 2004-05, the state had to suffer a revenue deficit of Rs 50 crore. While the revenue receipt was Rs1,546 crore, the expenditure reached Rs 1,596 crore.
The CAG also expressed its concern over lack of adequate funds for capital formation or asset creation.
'' Revenue expenditure of the state is on the increasing trend over the five-year period 2000-2005 and comprises 85 per cent of total expenditure in 2004-05 leaving very little for capital formation or asset creation,'' it said.
The total expenditure, including revenue expenditure, capital expenditure and loans and advances in 2004-05 had increased by Rs 259 crore over that of 2003-04. It increased from Rs 1,619 crore in 2003-04 to Rs.1,878 crore in 2004-05.
Interest payments was the fastest growing component during 2000-2005 with an average annual growth of 13.45 per cent.
''Out of the developmental expenditure of Rs.1,247 crore during 2004-05, social services and economic services (revenue and capital) accounted for 53.49 and 46.51 per cent respectively,'' said the report.
The CAG has suggested prudent tax reforms and debt management for ensuring fiscal stability for the state.
''It is through measures like reduction of revenue deficit/fiscal deficit by compressing non-developmental revenue expenditure and enhanced additional resource mobilisation through prudent tax reforms and debt management that the state government can achieve long term fiscal stability,'' the CAG report added.
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