The Principal Accountant General Audit (PAG) J&K, Subhash Chander Pandey today appreciated the state government's efforts towards tax collections over the past few years and suggested steps to boost the state economy.
Addressing a press conference here today, Pandey said the VAT remissions in the state have shown an upward trend during the past four years. Further, he said stamp duty collection has also increased during the period.
The PAG said the state's own tax revenues have shown a steady increase, particularly commercial taxes.
Pandey said owing to increase in tourism and other economic activities and improving tax compliance, there has been a very satisfactory growth in the revenues from state's own taxes, which are at a level of 7.7 percent of GSDP in 2012-13.
He said there has been record mobilisation of commercial taxes and stamp duties and the state's own revenue collections have shown a very high growth.
The PAG said the state has financed 26.3 per cent of its total expenditure in 2012-13 from own resources, up from 23.6 per cent in 2011-12.
Pandey said the intentions of the government to diversify the state economy are a welcome step and suggested greater thrust on areas like tourism, agriculture and industries.
He also suggested creating a more industry-friendly environment in the state. He suggested the need of power sector reforms, adding that these should continue to be a priority area for the state government.
During the press conference, Pandey presented the highlights of the report of the Comptroller and Auditor General of India for 2012-13 for the Government of J&K.
Pandey said the mandate of the CAG is not merely fault finding but to draw the attention of the government to areas of concern and suggest remedial measures to improve government functioning and accountability.
He suggested strict adherence to FRBM Act by the State Government. He said 80 percent of state's expenditure goes into the payment of salaries, pensions, interests and power.
He, however, expressed concern that the state's own deficit is on a steady increase and the revenue deficit has not been brought down as required by the said Act. He also expressed dismay over the diversion of plan grants for non-plan purposes.
