AP registered lowest growth rate in 2020-21: CAG
Says the state govt has not adhered to the targets prescribed in APFRBM Act for fiscal deficit and outstanding liabilities
Vijayawada: Andhra Pradesh registered lowest gross state domestic product (GSDP) growth during 2020-21 in the last five years, according to audit findings of Comptroller and Auditor General (CAG) of India on state finances for the period ending March 2021.
As per the CAG audit findings, the state government had not adhered to the targets prescribed in APFRBM Act in respect of fiscal deficit and outstanding liabilities. The liabilities of the state have been increasing year on year and majority of the borrowings during the year 2020-21 were utilised to balance revenue account of state affecting asset creation in the state.
Referring to finances of the state, the CAG report says the state witnessed an increase of 5.50 per cent in revenue receipts during the year 2020-21 as compared to previous year. The state received compensation of Rs 5,838 crore towards revenue loss due to Goods and Services Tax (GST) implementation, partly as grants (Rs3,527 crore) and partly as back to back loans (Rs 2311 crore) from Government of India.
The CAG report says that there was increase in revenue expenditure by 11.06 per cent during 2020-21. This resulted in increase in revenue deficit of state by 34.42 per cent as compared to previous year.
Coming to budgetary management the report points flaws in expenditure monitoring and control. There has been a persistent excess over authorisation during the last five years on account of seeking ways and means advances beyond anticipated levels.
Using of special bills by state government the CAG report says that for the year 2020-21, as many as 54,092 accounting entries were processed centrally at the AP Centre for Financial Systems through the back-end of Comprehensive Financial Management System (CFMS), which is not an authorised type of a bill in AP treasury code.