The overall debt of the state has grown at the rate of 15.62 percent annually of the outstanding overall debt between 2019-2023-24, the report tabled in the Assembly on Friday at the close of the session, said.
File Photo: IANS
Raising concern over the receipt-expenditure mismatch in the Tamil Nadu government resulting in fiscal stress, the CAG report 2023-24 has said the fiscal deficit of the state stood at Rs 90,430 crore (3.32 percent), exceeding the target of 3 percent, set under the TN Financial Regulation Act.
The overall debt of the state has grown at the rate of 15.62 percent annually of the outstanding overall debt between 2019-2023-24, the report tabled in the Assembly on Friday at the close of the session, said.
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Further, Debt-GSDP ratio has jumped to 28percent from 24.35 percent in 2023-24, the report pointed out. With public debt (borrowings) and debt servicing increasing by Rs 30,535 crore (30.21 percent) and Rs 16,460.40 crore (60.73 crore) over the previous year, the report pointed out that fiscal deficit might go up from Rs 90,430 crore to 90,631.27 crore.
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Revenue deficit has increased to Rs 45,121 crore (1.66 percent of GDSP) in the current year from Rs 35,909 (2.06 percent of GDSP) in 2019-20. This accounted for 11.28 percent of the total expenditure. With capital expenditure accounting for only 31 percent of the total borrowings, the report made it clear that the borrowed funds were used for meeting current consumption and repayment rather than capital creation.
With an annual growth rate of 9.08 percent, revenue receipts have grown from Rs 1,74,526 crore to Rs 2,64,597 crore besides the State receiving Rs 13,972 crore from the Central share of Centrally-sponsored schemes. Revenue expenditure has gone up to Rs3,09,718 crore from Rs 2,10,435 crore in 2019-20.
For the Magalir Urimai Thogai Thittam (monthly Rs 1000 to head of women households, the flagship scheme of the Stalin government, was allotted Rs 7000 crore, followed by Education, Sports and Culture, which received Rs 8,850.76 crore. But, the maximum allocation of Rs 14,568.01 crore was for the Social Welfare and Nutrition sector with the subsidised PDS scheme getting Rs 8,190 crore.
Flagging concerns about Gender budgeting, the report highlighted substantial gaps in planning, prioritising and executing women-oriented schemes citing many lapses, absence of guidelines and diversion of funds meant for women empowerment.
Similarly, it also exposed the diversion of funds meant for the uplift of Dalits and the TSP for Tribals.
“Under the Scheduled Caste Sub-Plan (SCSP), the maximum allocation of 22.84 percent was provided to the Social Welfare and Nutrition sector (Rs 3,899.82 crore), with the Magalir Urimai Thittam receiving Rs 1,540 crore. Under the TSP, the highest allocation of Rs 155.80 crore had gone to the ‘Schools’ scheme…
“The original budget outlay for SCs was below the mandatory percentage of 20.01 percent, proportionate to the population, in the last five years. The actual expenditure for SCs for the last five years varied between 12.65 percent and 17.27 percent (2023-24) and was under-utilised all these years,” the report pointed out.
On the gaps in compliance, allocation and implementation of SCSP and TSP, the report suggested that these should be provided adequate provision in proportion to population and ensure that funds are fully utilised.
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