The State finances were apparently worrisome during the financial year 2015-16. The fiscal deficit stood at ₹ 22,057 crore at 3.66% of the Gross State Domestic Product (GSDP). The fiscal deficit was more than prescribed limit of 3.25% for the year 2015-16. The total liabilities of ₹ 1,88,075 crore stood at 31.17% of the GSDP against the target of 24.33% prescribed by 14th Finance Commission for 2015-16. These are findings of Comptroller and Auditor General (CAG) in report on State finances for the year ended March 2016.
The report was tabled in the Assembly on Friday.
The CAG pointed out that the State government could not achieve the fiscal reform targets prescribed by the 14th Finance Commission. The CAG observed that there were instances of incurring excess expenditure or substantial savings with reference to provisions made during the year, exhibiting weakness in expenditure monitoring and control. Excessive/unnecessary/ inadequate re-appropriation of funds were also observed. Re-appropriation to heads where original provisions were not made have been noticed which showed lack of coordination between finance and the line departments, the report said.
