CAG report: Chhattisgarh's fiscal health weakening

Despite higher GSDP growth, the state has witnessed a sharp rise in fiscal deficit as well as capita debt levels

The Comptroller and Auditor General (CAG) has said Chhattisgarh failed to maintain fiscal discipline in 2014-15.

“The fiscal deficit was 3.81 per cent of the GSDP (gross state domestic product) during 2014-15, which was more than the three per cent estimated under the FRBM (Fiscal Responsibility and Budget Management) Act and the Thirteenth Finance Commission,” the CAG report on the state finances for the year ended March 31, 2015, said.  Chief Minister Raman Singh, who also heads the finance portfolio, has referred to Chhattisgarh’s fiscal discipline in various forums. The state government claims it has maintained all the parameters set out under the FRBM Act.
 

The CAG report said growth rate of the GSDP during 2014-15 was 13.20 per cent against the Thirteenth Finance Commission’s projection of 12.50 per cent. The state had a revenue deficit of Rs 1,573 crore and fiscal deficit of Rs 8,008 crore during 2014-15 and per capita debt had increased 74 per cent from Rs 6,632 in 2010-11 to Rs 11,549 in 2014-15.

The expenditure of Rs 4,824 crore incurred on 167 incomplete public works projects remained unfruitful as of March 31, 2015. The state government invested Rs 1,872.53 crore in government firms, co-operatives, banks and societies. The return of Rs 0.86 crore was at the rate of 0.05 per cent although the average borrowing cost of the government was 6.16 per cent during the year.