Hyderabad, Mar 29 (PTI) The Telangana government registered revenue surplus of Rs 1,386 crore during 2016-17 but it was overstated at Rs 6,778 crore on account of irregular accounting, the Comptroller and Auditor General said. Also Read - Discoms Will Get Loans at Cheaper Rate to Pay Dues to Gencos: Centre
“Thus, the state had revenue deficit of Rs 5,392 crore in 2016-17,” it said. Also Read - Discoms to Get Rs 90,000 Liquidity Support to Clear Dues
Fiscal deficit (Rs 35,281 crore), which stood at 5.46 per cent of Gross State Domestic Product (GSDP), was understated by Rs 2,500 crore due to crediting of borrowed funds as Revenue Recepits,” the CAG said in its report on State Finances for the year ended March, 2017. Also Read - GDP Growth Projections Before COVID-19 Need to be Relooked, Revised: Finance Commission
The maturity profile of debt as on March 31, 2017 indicated that state has to repay 49 per cent of debt amounting to Rs 56,388 crore within the next seven years, the report tabled in the Telangana assembly said.
“The repayment of debt as percentage of tax revenue increased from 7.12 during 2015-16 to 32.16 during 2016-17,” the government auditor said in its Analysis of Finances of the state government.
The ratio of fiscal deficit to GSDP excluding amount transferred under UDAY scheme (Rs 7,500 crore) was 4.3 per cent, it said.
“This exceeded the ceiling of 3.5 per cent stipulated for 2016-17 by the 14th Finance Commission and targeted in Medium Term Fiscal Policy Statement (MFPS) of the state under Fiscal Responsibility and Budget Management (FRBM) legislation,” it said.
Capital expenditure (Rs 33,371 crore) was more than the budget estimates (Rs 29,313 crore).
“Its ratio to total expenditure stood at 28.22 per cent which was higher than the combined average (19.70 per cent) of General Category States,” it said.
The capital expenditure of the state, excluding Rs 7,500 crore transferred to DISCOMS (state power distribution companies) under UDAY scheme, was Rs 25,871 crore, it said.
During the year, revenue expenditure accounted for 69 per cent of the state’s aggregate expenditure, which was in the nature of current consumption, leaving only 31 per cent for investment in infrastructure and asset creation, it said.
Devolution to the state was enhanced to the tune of Rs 2,525 crore during 2016-17 on the basis of 14th Finance Commission recommendations, the report said.
“Audit noted that additional devolution led to increase in revenue expenditure by Rs 5,536 crore over previous year,” it said.
This is published unedited from the PTI feed.