Guwahati, Mar 8 : Assam’s improved fiscal position for the year 2007-08 is a result of Centre’s aid and needed urgent change in allocative priorities and interest cost recovery.
The report of the Comptroller and Auditor General (CAG) of India for the year ended March 31, 2008, which was laid in the state Assembly today, disclosed that the State had been able to maintain revenue, fiscal and primary surpluses during 2005-06, 2006-07 and 2007-08.
The state had achieved the targets for revenue and fiscal deficits as well as with regard to other variables for 2007-08 even earlier than the timeline stipulated, with the year ending in revenue surplus of Rs 2,581 crore and fiscal surplus of Rs 790 crore.
The improvement in fiscal position was, however, on account of mandatory Central transfers compromising state share in Central taxes and grants-in-aid from the Centre, the CAG report noted.
On the major expenditure heads, the CAG pointed out that three heads - salary expenditure, pension payments and interest payments - constituted 76 per cent of Non-Plan Revenue Expenditure (NPRE) in 2007-08 and observed that these trends indicated the need for changing allocative priorities.
The huge accumulated losses by statutory corporations, especially in financial and transport sectors, resulted in negligible rate of return on government investments, the report stated.
This, coupled with inadequate interest cost recovery, continued to be a cause of concern and needed the attention of the state government.
The CAG report also highlighted several cases of fraud/misappropriation of funds, excess/wasteful expenditure, avoidable/unfruitful expenditure, idle investment and regularity issues.
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