The CAG of India has expressed concerns over the grim financial situation and mounting debt liability of Himachal, pointing out that per capita debt liability of the state has jumped from Rs 43,726 in 2012-13 to over Rs 65,444 in 2016-17, an increase of about 50 per cent.
The Comptroller and Auditor General (CAG) of India in its report, tabled by Chief Minister Jai Ram Thakur in the state Assembly, said the fiscal liability of the state increased by 15 per cent during 2016-17 to Rs 47,244 crore.
The report said the state was required pay nine per cent of the loans (Rs 3,096 crore) during the current year, 31 per cent (Rs 10,008 crore) during the next one-five years and the remaining 60 per cent (19,466 crore) after five years, implying that the state would be required to pay 55 per cent of its debt during the next seven years, which would put heavy strain on its financial situation.
Referring to uncontrolled expenditure, the CAG pointed out that financial liability on account of salaries and wages had increased by Rs 1,508 crore to Rs 9,356 crore (18 per cent) while the liability on the pensions also increased from Rs 2,747 crore in 2012-13 to Rs 4,114 crore in 2016-17.
While salaries and pensions constituted 53 per cent of the spending, interest repayments amounted to Rs 3,359 crore (an increase of 42 per cent), but the government, instead of mobilising its resources, was banking on borrowings.
On the performance level, the CAG detected huge shortfalls in revenue collection, including VAT, state excise, passenger and goods taxes, and questioned the non-levying of the royalty, causing a shortfall of several crores, with revenue implications of Rs 269.46 crore.