Even the CE has fallen short of the expenditure projection made in the budget estimate. The CE was 2.17 per cent of Gross State Domestic Product (GSDP) during 2012-13 as against the projection of 2.72 per cent in the budget. The CE was lesser by Rs 1,421 crore (about 20 per cent) against the budget proposal of Rs 7,043 crore.
The CAG report for the year ended March 2013 was tabled in the state assembly today.
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But the CE (meant for creating assets for future benefits), had shown an increase of 25 per cent during 2012-13 over the previous year (Rs 4,496 crore) in absolute terms, mainly on account of increase in expenditure on transport (Rs 295 crore).
This was also because of increasing expenditure in irrigation and flood control (Rs 256 crore), welfare of scheduled castes, scheduled tribes and other backward classes (Rs 180crore), water supplies, sanitation and housing and urban development (Rs 173 crore) and Energy (Rs 106 crore).
“Capital expenditure is an indication for asset creation. We have recommended that the state government may strengthen the state’s infrastructure for absorbing higher levels of capital expenditure for asset formation and sustainable development of the state,” Accountant General Amar Patnaik told media persons.
He, however, lauded that state government for achieving the target for revenue, fiscal deficits, level of debt stock and interest payment as laid down by the Thirteen Finance commission and stipulated in Fiscal Responsibilities and Budget Management act during 2012-13.
Even though revenue receipts has increased from Rs 24,610 crore in 2008-09 to Rs 43,937 crore in 2012-13 , registering a growth of 79 per cent, the annual growth rate has come down sharply to 9.11 per cent during 2012-13 from 21 per cent in 2011-12 . The CAG suggested the government to take steps to mobilise additional resources through tax and non-tax revenue by expanding the tax base.
Similarly, the revenue expenditure, which had a share of 84 per cent of total expenditure in 2008-09, increased to 87 per cent in 2012-13. However, it increased by 10 per cent from Rs 34,660 crore in 2011-12 to Rs 38,238 crore in 2012-13 in absolute terms.
Non-Plan Revenue Expenditure (NPRE) as a proportion of revenue expenditure, increased from Rs 15,882 crore in 2008-09 to Rs 26,645 crore (70 per cent) in 2012-13 and exceeded the finance commission’s normative assessment (Rs 22,752 crore) by Rs 3,893 crore. The increase in NPRE during the current year was mainly on education, sports, art and culture (Rs 313 crore), agriculture and allied services (Rs 298 crore), transport (Rs 256 crore) and welfare of SC, ST and OBC (Rs 167 crore). The expenditure on subsidies increased from Rs 743 crore in 2008-09 to Rs 1,951 crore (over 163 per cent) in 2012-13 which included food subsidy of Rs 1,190 crore.
Stating that the Centre is directly transferring substantial amount of grants-in-aid to the state agencies for implementation of different schemes in the state, the central auditor pointed out that there is no single agency monitoring the use of these funds and no data is readily available on the amount spent in major flagship and other important schemes.
It recommended the state government to put in place an appropriate mechanism to ensure proper accounting of these funds as these funds flowing directly to the implementing agencies through off-budget route inhibit FRBM Act requirements of transparency and escape accountability.