Andhra Pradesh

‘Fiscal performance indicators dismal’

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Various yardsticks showed a deteriorating trend in 2017-18: CAG

The State government had exceeded the Fiscal Deficit - Gross State Domestic Product (GSDP) norm under the Fiscal Responsibility and Budget Management (FRBM) Act, 2005, by 1.03%, according to the Comptroller and Auditor General of India (CAG) Financial Accounts tabled in the Assembly on Tuesday.

While it is a norm for the government to table the CAG report during the Budget session, the Legislative Secretariat tabled only the CAG Financial Accounts of 2017-18 of the State. As per the accounts of the A.P. government published by CAG for 2017-18, while the target for fiscal deficit percentage of GSDP was 3%, it went up to 4.03%. While the GSDP was ₹8,03,873 crore, the fiscal deficit was ₹32,380 crore .

Fiscal deficit-GSDP norm

“The ratio between the fiscal deficit and the GSDP should not exceed 3%, according to the FRBM Act. The Union Government is itself trying to reduce the ratio to 3.3% of the GDP this financial year from 3.4% in the previous financial year,” the CAG said.

Deficit indicators, revenue augmentation and expenditure management were major yardsticks for judging the fiscal performance of the government. Prudent financial management involved the generation of an annual revenue surplus and the revenue receipts exceeding the revenue expenditure, the CAG said.

As per the figures given by the CAG, there seemed to be a deterioration in the other fiscal indicators too.

While the government wanted to keep the ‘GSDP to debt’ ratio at 25.09%, the actual ratio went up to 32.30%. While the GSDP was ₹8,03,873 crore, the total debt went up to ₹2,59,670.02 crore.

Similarly, when the revenue deficit to total revenue receipts (TRR) ratio should be around 3.26%, it was as high as 15.37%. While the revenue deficit of the State was ₹16,151.67 crore, the TRR was ₹1,05,062.09 crore, the CAG said.

In the highlights of the accounts, the CAG said while the fiscal deficit of A.P. as per the 2017-18 budget was ₹23,053 crore, the actual deficit turned out to be ₹32,380 crore.

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Printable version | Dec 11, 2019 5:33:16 AM | https://www.thehindu.com/news/national/andhra-pradesh/fiscal-performance-indicators-dismal/article28763485.ece

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