The Hindu Business Line : AP finances turn the corner: CAG

Referring to the Godavari Water Utilisation Authority, CAG observed that contractors enjoyed undue benefits amounting to Rs 539 crore due to incorrect projection of materials required.

Our Bureau

Hyderabad, Nov. 20 The State finances have shown revenue surplus and primary surplus during the fiscal year indicating a reversal of the trend of past several years, according to the Comptroller and Auditor General of India (CAG).

Bringing about an overview of the State finances and representative cases of omissions, the CAG in its report (Civil) for the year ended March 31, 2007, highlighted that the total outstanding Fiscal liabilities of the State Government at Rs 86,622 crore works out to 33.22 per cent of the Gross State Domestic Product.

Revenue receipts

According to the CAG report tabled in the State Legislative Assembly today, during 2006-2007, revenue receipts were Rs 44,245 crore while the revenue expenditure was Rs 41,438 crore.

As a result, the revenue deficit was eliminated during the year and surplus of Rs 2,807 crore was built up.

The fiscal deficit created primary surplus of Rs 1,636 core and the capital expenditure of Rs 9,904 crore increased by Rs 2,564 crore over previous year.

The major share of capital expenditure was absorbed by irrigation and flood control.

Growth

Mentioning about State finances, the report stated that revenue receipts grew by Rs 9,394 crore over the previous year. The increase was mainly contributed by tax revenue of Rs 4,719 crore, non tax revenue (Rs 1,796 crore) and State’s share of Union Taxes and Duties (Rs 1,915 crore).

Expenditures

The revenue expenditure and capital expenditure increased by Rs 6,201 crore and Rs 2,564 crore respectively over the previous year.

The State had receipts of Rs 1,889 crore from sale of lands and buildings which was classified as miscellaneous capital receipts instead of revenue receipts as per accounting norms.

The State also recorded sharp increase in recovery of loans and advances compared to pervious year.

Alongside, public debt receipts increased by Rs 579 crore over previous year mainly due to increase in market loans by Rs 769 crore. However, borrowings from the Central Government decreased by Rs 208 crore.

Cash balance

Significantly, the cash balance of the State increased by Rs 1,499 crore over previous fiscal.

A summary of the report reflects that the year under review receipts increased by 27 per cent, revenue expenditure was up 18 per cent over previous year.

Interestingly, the capital expenditure increased by 35 per cent and fiscal deficit decreased by Rs 2,656 crore over previous year.

GODAVARI

Referring to the Godavari Water Utilisation Authority, the CAG observed that the contractors enjoyed huge unintended and undue benefits amounting to Rs 539 crore due to incorrect projection of materials required, boosting of unrealistic estimates.

And the report also observed that liquidated damages amounting to Rs 36.36 crore were not recovered from the contractors.

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