High revenue mobilisation marred by fiscal liabilities
73 per cent of revenue expenditure was under non-plan Unutilised borrowed funds indicated unnecessary loans Paddy productivity remained stagnant under Tenth Five Year Plan
Pondicherry: Though the State Government managed to increase revenue mobilisation in absolute terms, in reality, money earned from revenue receipts decreased from 62 per cent in 2003-2004 to 56 per cent during the financial year ending March 2005, a summary of audit findings on the Government's financial position said on Monday. Chief Minister N. Rangasamy tabled the Comptroller and Auditor General (CAG) of India report for the year ending March 31, 2005 in the Assembly.
The revenue receipts of Pondicherry Government during 2004-2005 amounted to Rs. 1,631 crore, registering an increase of 25 percent over 2003-2004. The revenue expenditure during the year was Rs. 1,572.57 crore, an increase of 21.6 percent over 2003-2004. Seventy three percent of revenue expenditure was under non-plan. Fiscal liabilities grew from Rs. 1,312.31 crore in 2003-2004 to Rs. 1,552.97 crore in 2004-2005. During 2004-2005, the revenue surplus and unutilised borrowed funds contributed to an increase in cash balance by Rs. 1,07.22 crore. This indicated unnecessary borrowing and the consequent interest liability, the Report said.
The summary of the State's financial position also said that the Tenth Five Year plan laid stress on improving agricultural productivity, mainly that of paddy.
However, the schemes implemented during the first three years of the Tenth Plan (2002-2005) to achieve this objective did not make any tangible impact and paddy productivity remained stagnant.