The fiscal liabilities were maintained at 35 per cent of the GSDP as contemplated in Andhra Pradesh Fiscal responsibility and Management Act 2005.

Our Bureau

Hyderabad, Dec. 21

While the Andhra Pradesh revenue deficit reduced by about Rs 386 crore during 2005-2006 from Rs 3,387 crore in the previous year, the revenue receipts grew by about 21 per cent.

The Comptroller and Auditor General of India (CAG) in its report on Andhra Pradesh for the year ended March 31, 2006, observed that the total outstanding fiscal liabilities stood at Rs 70,549 crore, which was 35 per cent of the State Gross Domestic Product (GSDP).

The fiscal liabilities were maintained at 35 per cent of the GSDP as contemplated in Andhra Pradesh Fiscal responsibility and Management Act 2005. Detailing the findings, the Principal Accountant General (Civil Audit), Mr S.B. Pillay, explained that the expenditure on salaries increased by Rs 1377 crore over previous year due to the implementation of revised pay scales of 2005. This also contributed to increase in primary deficit.

Development expenditure and capital expenditure was estimated at 67 per cent and 17 per cent respectively.

During 2005-2006, the State Government was able to reduce revenue deficit to 0.32 per cent and 0.25 per cent of GSDP over previous year.

Bringing about representative analysis of some other issues, the CAG highlighted some slip-ups in food security, subsidy and management of foodgrains.

Referring to Project Tiger, the auditor found that the sanctity of the Tiger reserve was not protected and the tiger, an indicator of the existence of sound ecological balance, does not seem to be a priority for the State Government.

ePROCUREMENT

During the audit of the information technology and eProcurement, CAG found that the project suffers from many deficiencies associated with software, policies, procedures and controls of the project such as standardisation of procurement process across the user departments, implementation of public key infrastructure, database design, technical documentation and archival policy.

The CAG observed that even the objective of prevention of cartel formation could not be achieved fully and there is perpetual dependence of the IT department as well as user departments on the vendor.

The CAG report also found inadequacy in the Tsunami relief works and the reconstruction of the damaged works for fishermen was neglected. So was the case with rural road upgradation and maintenance and inadequacy in delivery of services in women development and chills welfare department.

(This article was published in the Business Line print edition dated December 22, 2006)
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