CAG concerned over economic condition of Mizoram

Aizawl, Apr 2 (UNI) The Comptroller and Auditor General(CAG) Report 2006 uttered concern over the economic condition of Mizoram and stated that financial status is deterioratig.

The overview in the report said, ''The fiscal position of the state has reflected a decrease in revenue surplus, increase in fiscal and primary deficits which indicates a deteriorating position of the state finance.'' The report said that while the Centre contributes 89.41 per cent of the state's total revenue, the state's contribution is a mere 10.59 per cent and the revenue receipts during the year 2005-06 was due mainly to Central transfers made to the tune of Rs 91.80 crore.

The report has also said that the expenditure growth increased to 17.85 per cent in 2005-06 compared to only a 3.7 per cent increase in 2004-05.

It however stated that although the state had been enjoying revenue surplus for the past three consecutive years, this was mainly due to increased Central transfers and did not reflect a healthy financial trend because there is a consistent and sizeable fiscal and primary deficits since 2000-01.

Pointing out the vulnerability of the state's finances,the report said this was because of fiscal deficits accrued through quantum spread accentuated by increasing debt Gross Domestic Product (GDP), had risen to unsustainable level in recent years.

The state's precarious financial position was aggravated by inadequate recovery of interest cost of borrowed funds on loans and advances and there was no return in government investments, the report said.

The report advised that augmentation of state's own resources should be utilised and a judicious spending policy taken up for medium to long-term projects to address the vulnerable position of the state's economy.

UNI