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Telangana’s budgetary spending’s unrealistic : CAG

The Comptroller and Auditor General of India (CAG) has observed the budgetary allocations and spending by Telangana Government during the financial year 2014-15 were unrealistic. “Evidence of unrealistic budgetary assumptions and weaknesses in expenditure monitoring and control were noticed during the year,” the CAG said in its report on State Finance for the year ended March 2015 which was tabled in State Legislative Assembly yesterday.

In Audit findings, the CAG said that the State registered a revenue surplus of Rs. 369 crore during 2014-15. Total outstanding liabilities constituted 22.79% of GSDP which was within the ceiling of 27.6% stipulated in FRBM Act for the year 2014-15. However, the revenue surplus has to be viewed in the light of the fact that the government has to work out its liability of Rs. 651 crore on account of Zilla Parishad Provident Fund contributions and incorrect booking of Rs. 690.27 crore.

Revenue receipts of Rs. 51,042 Crore during 2014-15 were mainly on account of tax revenue collections (57.38%) and Non-Tax Revenue Collections (12.63%). Out of the total expenditure of Rs. 60,529 Crore, Revenue expenditure accounted for 83.72% (Rs. 50,673). Capital Expenditure was Rs. 8,373 crore, which amounted to 13.83% of overall expenditure.

“Although the State Government accorded adequate fiscal priority to development expenditure during 2014-15, it did not ensure that the allocated funds were release fully for the intended purposes. State outlay on education (11.57%) in particular, was less than that of the General Category States (16.23%). Further, the share of Social Sector expenditure to aggregate expenditure (34.42%) was also lower in the State, compared to the other General Category States (36.50%),” said the CAG report.


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