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"The overall fiscal liabilities of J&K State has increased from Rs 31,272 crore at the end of 31st March 2011 to Rs 36,267 crore at the end of 31 March 2012", said the CAG report for 2011-2012 fiscal, tabled in the Jammu and Kashmir Assembly recently.
The total liabilities comprise Rs 20,789 crore of internal debt, Rs 1,903 crore as loans and advances from Government of India and Rs 13,575 crore in the form of public account liability as on March 31st, 2012, CAG said.
The fiscal liability GSDP (Gross State Domestic Product) ratio of the state declined from 65.6% at the end of 31 March, 2011 to 58.2% at the end of 31 March 2012, it said.
The fiscal deficit of the state increased from Rs 1,930 crore in 2006-07 to Rs 3,694 crore in 2011-12, while primary deficit rose from Rs 143 crore to Rs 1,311 crore during the same period, it said.
The "state's own deficit" also increased from Rs 10,680 crore to Rs 21,730 crore during 2011-12, it said.
Interest payments on liabilities totalling Rs 2,383 crore constituted 11% of the revenue expenditure of Rs 22,680 crore, the CAG said.
The CAG recommended strongly for strengthening tax administration to collect revenue arrears and take appropriate measures to reduce non-revenue expenditure.
It also called for preparation of an effective action plan to complete all projects promptly so that people derive benefits in time.
