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Utilisation certificates worth Rs 7,015 cr pending

By Staff Reporter

GUWAHATI, Feb 7 � The decrease in the ratio of the State's revenue receipt to its total expenditure is mainly due to the rise in the grants-in-aid amounts it received from the Centre. Besides, in the total expenditure of the State, revenue expenditure had been occupying a predominant share till 2009-10 at an annual average rate of 20.30 per cent since 2005-06.

Significantly, the State had 17,025 utilisation certificates (UCs) worth Rs 7,015.11 crore pending as of March 2010 and 4,997 UCs involving an amount of Rs 986.29 crore were pending for more than five years. In the absence of the UCs it could not be ascertained whether the recipients had utilised the grants for the purpose for which these were given, said the Comptroller and Auditor General (CAG) in its report (Report No. 1) on the State Finances of Assam for the financial year that ended on March 31, 2010. .

Moreover, the State also recorded decrease in its developmental expenditure in relation to the aggregate expenditure during the period. The decrease in the ratio of developmental expenditure to aggregate expenditure indicates that the State attaches low fiscal priority towards its development.

The CAG in its said report has stated that the decrease in the revenue receipts to total expenditure from 108.21 per cent in 2008-09 to 82.99 per cent in 2009-10 is to be viewed in the light of the unprecedented increase of Rs 1,552 crore in grants-in- aid during 2008-09 over 2007-08.

The CAG also maintains that the State should make efforts to return to primary and revenue surplus as was the case in the past years. Maintaining a calendar of borrowings to avoid bunching towards the end of the fiscal year will ensure that market borrowings are sourced optimally. A clear understanding of the maturity profile of debt payments will go a long way in prudent debt management, said the CAG in its report.

The Government today laid the CAG reports, barring Report No. 3, in the State Assembly.

The Report No. 1 further said that the buoyancy of total expenditure with reference to gross state domestic products (GSDP) rose to 3.94 per cent during 2009-10 due to increase in the rate of growth of total expenditure as compared to the rate of growth of GSDP. Similarly, the buoyancy ratio of total expenditure to revenue receipts rose to 4.34 per cent in 2009-10 indicating increase in expenditure at a pace greater than the receipt.

The buoyancy of revenue expenditure with reference to both GSDP and revenue receipts fluctuated widely. This increase was due to the fact that the Non-Plan Revenue Expenditure of the State largely forms committed expenditure of the Government and constitutes dominant share in the revenue expenditure, said the CAG report.

It also maintained that the expenditure on general services and interest payments, which are considered as non-developmental, together contributed 35.29 per cent in 2009-10 as against 32.34 per cent in 2008-09.

On the other hand, development expenditure --- that is, expenditure on social and economic services together accounted for 62 per cent in 2009-10 as against 66.25 per cent in 2008-09. This indicates that there was decrease in development expenditure and increase in non-development expenditure in comparison to previous year, said the CAG report.

It further said that the overall revenue expenditure of the State increased by 101.52 per cent from Rs 10,536 crore in 2005-06 to Rs 21, 232 crore in 2009-10 at an annual average rate of 2030 per cent and increased from Rs 14, 243 crore in 2008-09 to Rs 21, 243 crore in 2009-10.

The Non-Plan Revenue Expenditure (NPRE) of the State during the year constituted a dominant share of more than 80 per cent in the revenue expenditure and has increased by Rs 5,930 crore over the previous year. Plan Revenue Expenditure (PRE) of the State increased by Rs 1,059 crore from Rs 3,110 crore in 2008-09 to Rs 4, 169 crore in 2009-10.

Pendency of UCs mainly pertains to Education Department (12,444, involving Rs 598.35 crore), Health Department (360, involving Rs 263.28 crore), Sericulture Department (322, involving Rs 93.93 crore), Social Welfare Department (448, Rs 480.89 crore) and Welfare of Plain Tribes and Other Backward Classes (530, Rs 1,038.36 crore).

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