Tribune News Service
Pratibha Chauhan
Shimla, August 13
The total liabilities and debts of the state for 2020-21 have mounted to Rs 67,888.30 crore as compared to Rs 61,492.19 crore, indicating an increase of 10.40 per cent.
Financial position in 2020-21
Growth rate – 3.87 per cent
The fiscal deficit is 3.64 per cent
Debt/liabilities Rs 67,888.3 cr
The ratio of fiscalliabilities to GSDP 42.91 pc
This was revealed in a report of the Comptroller and Auditor General (CAG) on the financial position of the state in 2020-21, tabled in the Vidhan Sabha today by Chief Minister Jai Ram Thakur, who also holds the Finance portfolio. The ratio of fiscal liabilities to the GSDP in 2020-21 was 42.91 per cent, exceeding the 36 per cent target set by the 15th Finance Commission.
During 2020-21, the fiscal deficit of Rs 5,700 crore increased by Rs 103 crore over the previous year (Rs 5,597 crore). As such, the fiscal deficit was 3.64 per cent of the GSDP, which exceeded the targets set in the HP-FRBM Act. There was a revenue deficit of Rs 97 crore against the previous year’s revenue surplus of Rs 12 crore.
The report indicates that the growth rate of GSDP during 2020-21 was minus 3.87 per cent, mainly due to a decline in growth in the primary and secondary sectors. The report also mentions that Rs 3,557.83 crore spent by the state government fall in the high risk of misuse as 2,800 utilization certificates (UCs) had not been submitted so far.
During 2020-21, only 31 per cent of the revenue receipts came from the state’s own resources while the remaining 69 per cent the state’s share in Central taxes and duties (14 per cent) and grants-in-aid from the Center (55 per cent ). This is indicative of the fact that the fiscal position of the state is dependent mostly on Central funding.
Of the 29 public sector undertakings, 11 earned profit of Rs 28.18 crore with losses of the HP Electricity Board stood at the highest Rs 185.32 crore, followed by the state transport department Rs 146.43 crore and Rs 105.98 crore by the HP Power Corporation.
There are 13 PSUs with total losses of Rs 4,074.85 crore, resulting in the net worth of nine PSUs being completely eroded.