The report of the Comptroller and Auditor General of India (CAG) on the finances of the state is encouraging. The Gross State Domestic Product (GSDP) figure of the state has crossed Rs 03.02 lakh crore. An increase of 11.19 percent has been registered in it as compared to the year 2021-22. Accordingly, the size of the state budget is also increasing continuously. It has crossed Rs 71 thousand crore with an annual average growth of 10.59 percent as compared to 2018-19. It is a matter of relief that with the ever-increasing budget size, the revenue deficit is now a thing of the past. In the year 2022-23, Uttarakhand had a revenue surplus of Rs 5310 crore. Along with this, the state machinery was successful in reducing the fiscal deficit as well.
The revenue deficit of the state was Rs 980 crore
According to the CAG report prepared for the financial year ending on March 31, 2023, the revenue deficit of the state in the year 2018-19 was Rs 980 crore. Which was 0.43 percent of GSDP. After this, for the first time in the year 2021-22, the revenue deficit was not only eliminated by a big margin, but it also remained a surplus of Rs 4128 crore. The government further improved this performance, as a result of which the revenue surplus reached Rs 5310 crore in the year 2022-23. This increase was found to be 28.63 percent as compared to the year 2021-22. On the other hand, the government was also successful in reducing the fiscal deficit due to the difference between the total expenditure and total non-debt receipts of the state. The fiscal deficit which was Rs 7320 crore (3.18 percent of GSDP) in the year 2018-19, has now come down to Rs 2949 crore (0.97 percent of GSDP) in the year 2022-23. This reduction was 21.07 percent.
Expenses increased at the rate of 5.78 percent, maximum expenditure on salaries and allowances
The CAG report shows that the state government is also making continuous efforts to reduce expenses. However, between the year 2018-19 and the year 2022-23, an average increase of 5.78 percent has been recorded in it. The biggest part of this is interest payment, salary, pension etc. Still, due to increase in receipts in the last three years, some reduction has been seen in it. In the year 2018-19, it was 66.46 percent of the total expenditure and has come down to 58.94 percent in the year 2022-23. Committed expenses like interest, salary etc. are increasing at an average rate of 5.78 percent annually. It has increased from Rs 21 thousand 396 crore to Rs 25 thousand 800 crore.
Debt increased, liabilities are decreasing
The public debt of the Uttarakhand government has increased at the rate of 6.71 percent between the years 2018-19 and 2022-23. However, due to the acceleration in repayment, the outstanding overall liability has come down from 25.20 percent to 24.08 percent. CAG has considered this as a sign towards debt stabilization. Apart from this, the fiscal deficit debt has also been found to be within the limit. As per the Fiscal Responsibility and Budget Management (FRBM) Act, the debt limit should be a maximum of 33.90 per cent of GSDP, while it was found to be 24.08 per cent.
