The Comptroller and Auditor General (CAG) in its report on finance and appropriation accounts for 2022-23 has observed that the Maharashtra Government could not achieve the target of revenue surplus as per the provision of the Fiscal Responsibility & Budgetary Management Act, 2003. During the year 2022-23, the state reported a revenue deficit of Rs 1,937 crore and a fiscal deficit of Rs 67,602 crore which represents 0.05% and 1.92% of the Gross State Domestic Product (GSDP) respectively. The Fiscal Deficit constituted 14 percent of total expenditure.
CAG report, which was tabled in the Maharashtra Legislative Assembly by Deputy Chief Minister Ajit Pawar on Wednesday, said the fiscal deficit of Rs 67,602 crore was 2% of the GSDP of Rs 35,27,084 crore. It was below the 4% target of the GSDP. The fiscal deficit was met by the additional public debt of Rs 49,907 crore. The fiscal deficit was brought down to 1.92% in 2022-23 from 2.01% in 2021-22.
The state government’s public debt rose to Rs 5,32,942 crore in 2022-23 against Rs 4,83,035 crore in 2021-22, a rise of Rs 49,907 crore. CAG has observed that the debt of Rs 72,000 crore was mainly used for the discharge of debt obligations of Rs 43,764 crore and interest of Rs 41,689 crore instead of the creation of capital assets.
‘’It is desirable to fully utilize borrowed funds for the creation of capital assets and to use revenue receipts for the repayment of principal and interest. The State Government could not utilize the borrowed funds fully on capital assets in the year 2022-23,’’ said CAG. It further added that servicing of debt showed decreasing trends from 2018-19 to 2020-21 and increasing trend in 2022-23, however, the entire public debt receipts were utilized for Debt servicing.
Liabilities of the State Government increased by Rs 54,459 crore from Rs 6,06,295 crore in 2021-22 to Rs 6,60,754 crore during 2022-23. Public debt comprising internal debt of the State Government and loans and advances from the Central Government increased by Rs 49,907 crore i.e. from Rs 4,83,035 crore in 2021-22 to Rs 5,32,942 crore at the end of the current year.
Gross Revenue Expenditure of Rs 4,15,536 crore for 2022-23 fell short of budget estimates by Rs 83,205 crore due to less disbursement of Rs 50,078 crore under Scheme Expenditure and Rs 33,127 crore under Committed Expenditure.
Further, the uncommitted revenue expenditure available for implementation of various schemes has increased by Rs 94,304 crore (52 percent) from Rs 1,80,427 crore in 2018-19 to Rs 2,74,731 crore in 2022-23. The total revenue expenditure increased by 53 percent from Rs 2,67,022 crore in 2018-19 to Rs 4,07,615 crore in 2022-23 and committed revenue expenditure increased by 53 percent over the same period.
During 2022-23 Supplementary grants totaling Rs 26,214.03 crore proved to be unnecessary because of significant savings at the end of the year even against original allocations.
Total investments as share capital in Public Sector Undertakings (PSUs) stood at Rs 2,07,442 crore at the end of 2022-23. Dividends received during the year were Rs 36.01 crore (0.02 percent of the investment).
Investments in PSUs increased by Rs 18,783.67 crore and income from dividends decreased by Rs 52.35 crore.
The increase in investments of Rs 18,783.67 crore during 2022-23 was in Statutory Corporations (Rs 14,099.36 crore), Government Companies (Rs 4,504.91 crore), Co-operati ve Banks/Societies, and Local Bodies (Rs 94.09 crore) and Rural Banks (Rs 85.31 crore).
CAG has rapped the state government over the lack of submission of Detailed Countersigned Contingent (DCC) bills containing vouchers in support of final expenditure within one month from the date of draw. The major defaulting departments that had not submitted DCC bills are Medical Education and Drugs Department (Rs 2,302.55 crore); Public Health Department (Rs 1,279.06 crore); Home Department (Rs 252.40 crore) and Planning Department (Rs 231.95 crore).
According to CAG, , major defaulting departments that had not submitted utilization certificates (UCS) are the Urban Development Department (Rs 9,254.93 crore); Planning Department (Rs4,185.85 crore); Rural Development and Water Conservation Department (Rs 2,966.75 crore) and Industries, Energies and Labour Department (Rs 1,698.27 crore).
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