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According to CAG report on the state finances for 2011-12 tabled in UP legislature, CAG found that while, the revenue expenditure had increased by 15 per cent (Rs 16,209 crore), the plan expenditure component had increased marginally by Rs 1,576 crore or 7 per cent, which showed sluggish growth of infra.
The instant CAG report pertains to the previous Mayawati regime, since the Samajwadi Party came to power only on March 15, 2012, when incumbent chief minister Akhilesh Yadav took oath. However, the trend about dismal growth of infrastructure has managed to stay put under successive regimes.
Meanwhile, CAG found that revenue receipts had increased by 18 per cent during 2011-12 mainly due to increase in tax revenue (28 per cent) and increase in share of union taxes (16 per cent).
The tax revenue of Rs 52,613 crore was above the projections made by 13th Finance Commission (Rs 41,811 crore) by Rs 10,802 crore.
CAG noted there had been an increasing trend in generation of state’s own revenues. The tax revenue/Gross State Domestic Product (GSDP) ratio remained constant around 7 per cent during 2007-11, but exceeded 7 per cent during 2011-12.
The non-tax revenue-GSDP ratio substantially decreased from 2.77 per cent in 2009-0 to 1.47 per cent in 2011-12.
The average return on government’s investments in statutory corporations, government companies, joint stock companies and cooperatives was 0.06 per cent during the last 3 years, whereas its average interest outgo on borrowings was 6.48 per cent during the corresponding period.
The Debt-GSDP ratio at 35 per cent at the end of 2011-12 was on lower side, especially in view of the target of Fiscal Responsibility and Budget Management (FRBM) (Second Amendment) Act, 2011 to contain it to 42 per cent by the end of 2014-15.
Nearly 91 per cent of borrowed funds were used for discharging debt liabilities in last three years.
