The fiscal health of Himachal Pradesh has deteriorated as there has been an increase in liabilities by 46 percent in the past four years, the Comptroller and Auditor General of India (CAG) said Friday.
The fiscal liabilities have increased from Rs.18,071 crore in 2006-07 to Rs.26,415 in 2010-11, said the CAG, whose report was tabled in the assembly. These liabilities stood at 2.08 times the revenue receipts at the end of 2010-11.
“The state government was required to set up a consolidated sinking fund as recommended by the 12th Finance Commission for amortisation of market borrowings as well as other loans and debt obligations but it has not yet been set up.”
The CAG blamed the alarming deterioration in the financial position to high expenditure on salaries and wages.