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Our Bureau

Hyderabad , July 29:

THE fiscal liabilities of Andhra Pradesh have nearly doubled from Rs 28,297 crore in 1998-99 to Rs 54,831 crore in 2002-03, resulting in steep interest outflows to the tune of Rs 6,131 crore, a 34 per cent growth over previous years.

More than half of borrowed funds during 2002-03 were used to meet revenue deficit and resources were left for capital expenditure (Rs 2,928 crore), just 9 per cent of the total expenditure.

The Comptroller and Auditor General of India (CAG) observed that interest payments had far exceeded the barrier set by the Eleventh Finance Commission. "Though the panel recommended to keep the interest payments at 18 per cent of revenue receipts, the figure crossed 27 per cent during 2002-03," CAG said.

As a result, net availability of funds from borrowings steeply declined to 4.81 per cent from 11.70 per cent in 1998-99.

Briefing presspersons about the findings of CAG here, Mr C.V. Avadhani, Principal Accountant General (Audit I), said that Government investments in companies and corporations fetched a negligible 0.09 per cent returns on an average during the last five years.

The CAG, which has submitted its findings to the State, has found serious lapses and violation of rules during 2002-03, resulting in loss of thousands of crores to the State exchequer.

Audit review on a scheme that offered Sales Tax (ST) incentives to industries revealed a loss of Rs 477 crore on account of irregular ST deferment sanctions and exemptions.

The CAG observed that ST deferments and exemption sanctions to the tune of Rs 3,719.46 crore given to eight mega projects were irregular.

At the end of March 2003, total uncollected revenues from various tax avenues amounted to Rs 3,020.80 crore. "Of this, Rs 1,320.80 crore were pending for more than five years," he said.

The irregularities relating to non-levy or short-levy of taxes, penalty and interest stood at Rs 780.89 crore.

More Stories on : Economy | Andhra Pradesh

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Report points to AP's mounting fiscal liabilities

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