Guj fiscal deficit improves

Gandhinagar, Mar 30 (UNI) The Comptroller and Auditor General (CAG) has said the finances of Gujarat indicate improved trend in deficit indicators during the year 2005-06.

The CAG said target prescribed for containing of interest payment had not been met as also non-plan expenditure. The state government comitted expenditure towards salary, interest and pension payment at 43 percent of revenue recipts, indicating that limited funds would be available towards development expenditure.

The revenue deficit decreased from Rs 4,037 crore in 2004-05 to Rs 398 crore in 2005-06. The fiscal deficit also decreased from Rs 8,691 crore in 2004-05 to Rs 6,268 crore in 2005-06.

The revenue receipts of the state increased from Rs 15,739 crore in 2000-01 to Rs 25,067 crore in 2005-06. The own tax revenue of the state increased from Rs 9,047 crore in 2000-01 to Rs 15,698 crore in 2005-06.

The state government, in its medium term fiscal policy statement, estimated own tax revenue of Rs 18,533.40 crore for the year 2005-06. However, it stood at Rs 15,698 crore.

The total expenditure of the state increased from Rs 25,953 crore in 2000-01 to Rs 33,127 crore in 2005-06. Share of General Services considered as non-developmental, in total expenditure, increased from 23.83 per cent in 2000-01 to 34.34 per cent in 2005-06, whereas share of Economic Services declined from 38.67 per cent in 2000-01 to 32.73 per cent in 2005-06.

Interest payment and pensions together consumed 29 per cent in 2000-01 to 33 per cent in 2005-06 of total revenue receipts of the state. State Government has been paying subsidies to various, corporation and others.

Payment of subsidies increased from RS 2,021.26 crore in 2000-01 to Rs 2,760.91 crore during 2005-06. Power sector continues to be highly subsidized and subsidy of Rs 2,053 crore was paid during 2005-06, which constitutes 74 per cent of the total subsidy paid during the year. Out of outstanding guarantee of Rs 13,430 crore in 2005-06, almost 78 per cent were towards Sardar Sarovar Narmada Nigam Limited (SSNNL) and Guajrat Eletricity Board (GEB).

The overall fiscal liabilities of the State increased from Rs 40,007 crore in 2000-01 to Rs 81,367 crore in 2005-06.

UNI