The Comptroller and Auditor General’s (CAG) report on state finances for the year ended March 31, 2013, tabled in the assembly showed the bad financial health of the state. As per the report borrowings of the state has increased Rs 11,808 crore and revenue deficit increased Rs 2,979 crore in 2012-13.
CAG report revealed that the Himachal Pradesh’s public debt has climbed to a Rs.20,765 crore in 2012-13. During 2012-13, seven loans totalling Rs.2,360 crore were raised from the open market at interest rates varying from 8.42 percent to 8.92 percent. In addition, the state government had raised loans of Rs.408 crore from the financial institutions and Rs.471 crore from the National Small Savings Fund. Thus, the total internal debt raised by the government in 2012-13 aggregated to Rs.3,239 crore.
The report pointed out that the revenue expenditure has increased by Rs 2,276 crore and revenue receipts by Rs 1,055 crore. The grants-in-aid from the Union Government increased to Rs 7,313 crore in 2012-13, which is up by Rs 792 crore almost 12 per cent from previous financial year.
Report said that the state had a revenue deficit of Rs. 567 crore (Rs. 645 crore surplus reported in 2011-12) and a fiscal deficit of Rs. 2979 crore. The fiscal deficit constituted 16 percent of total expenditure. Around 80 percent of the revenue receipts Rs. 15598 crore of the state government was spent on committed expenditure like salaries and wages Rs. 7255 crore, Interest payment Rs. 2370 crore, Pensions Rs. 2747 crore and subsidies Rs. 567 crore.