Fiscal Deficit plunges, still more than target: Report

Jaipur: Fiscal Deficit as a percentage of Gross State Domestic Product (GSDP) decreased from 5.86 per cent in 2020-21 to 4.03 per cent in 2021- 22, which was higher than the target of three per cent as prescribed under FRBM Act, 2005, as per the CAG report tabled in Rajasthan Assembly last week.

As per the CAG report, during 2021-22, there was short transfer of Employee contribution to New Pension Scheme (NPS) by Rs 641.89 crore. A deferred liability of Rs 809.00 crore on the part of state government due to short transfer of employee contribution by Rs 778.28 crore and legacy amount of Rs 30.72 crore was also found.

“Despite flagging these issues every year over the last several years, the State Government has failed to take corrective measures in this regard,” the report mentioned.

Various departments did not submit 770 Utilisation Certificates aggregating to Rs 1,833.21 crore pertaining to the period 2010-11 to 2020-21 to the office of the auditor general as on 31 March 2022.

While evaluating the financial performance of state PSUs, the CAG report said that the contribution of PSUs to GSDP of Rajasthan declined from 8.29 per cent in 2019-20 to 7.44 per cent in 2021-22.

Out of 42 Government Companies and Statutory Corporations, 27 PSUs earned profit, 12 PSUs reported losses and three PSUs had neither profit nor loss.

As on 31 march 2022, net worth of 15 out of 23 loss making PSUs had been completely eroded. The total net worth of these 15 PSUs was negative at Rs 62,749.66 crore against the paid-up capital of Rs 34,596.22 crore, as per the report. The report highlighted increase in expenditure under electricity, education and rural development programs.