‘An all-round deterioration in the financial condition’
Allahabad: There has been an all-round deterioration in the financial condition of Uttar Pradesh and the state may be heading towards “fiscal stress” in the medium-to-long term, says the Comptroller and Auditor General of India.
In its report for the year ended March 31, 2008, the CAG has said the states financial position, viewed in terms of the key fiscal parameters of revenue surplus, fiscal deficit and primary deficit, had deteriorated in comparison to the previous year.
“Not only revenue surplus declined by Rs.1,452 crore (30 per cent) in 2007-08, but fiscal deficit has also increased by Rs.4,179 crore (43.46 per cent) and primary surplus turned into a huge deficit”, the report said.
Moreover, the states fiscal performance “in terms of deficit indicators vis-À-vis targets set in Fiscal Correction Path (FCP) as well as Mid Term Fiscal Restructuring Policy (MTFRP) for 2007-08 indicated a dismal picture”, the report noted.
This was despite the fact that central transfers increased by Rs.6,828 crore in 2007-08 and accounted for “85 per cent” of incremental revenue receipts during the year.
The CAG has blamed the decline on revenue surplus on sluggish growth rate of 8.53 per cent (Rs.1,961 crore) in the states own tax revenue compared with 22 per cent (Rs.4,140 crore) a year ago.- PTI