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Audit Reports
Financial
Himachal Pradesh
Report 2016 - State Finances Government of Himachal Pradesh
Date on which Report Tabled:
Thu 07 Apr, 2016
Date of sending the report to Government:
Government Type:
State
Sector
Finance
Overview
This Report provides an analytical review of the Annual Accounts of the State Government for the year 2014-15. The Report is structured in three Chapters.
Chapter I is based on the Finance Accounts and makes an assessment of the Government’s fiscal position as on 31 March 2015. It provides an insight into trends of different components of the Government’s receipts, expenditure and borrowing pattern, besides giving a brief account of fiscal imbalances.
Chapter II is based on the Appropriation Accounts and gives a grant-wise description of appropriations. It elaborates on financial accountability and budget management, deficiencies in working of treasuries and outcome of review of Grant No. 13 (Irrigation, Water Supply and Sanitation).
Chapter III is an inventory of the Government’s compliance with various reporting requirements and financial rules alongwith additional data collated from several other sources in support of the findings.
At the end of 2014-15, revenue deficit (Rs 1,944 crore) which was required to be brought down to zero during 2011‑12 and maintain revenue surplus thereafter could not be achieved. Fiscal deficit (Rs 4,200 crore) as a percentage of GSDP was significantly higher at 4.39 per cent against the target fixed by Th FC (i.e. 3 per cent or less). State Government heavily relied on borrowings. The outstanding debt rose by 13 per cent (Rs 38,192 crore) and outpaced the growth rate of GSDP (11 per cent). Total outstanding debt stand at 40 per cent of GSDP and has reached limits set by the Th FC. Borrowings are used for repayment of earlier debts which means fresh borrowings are being used to finance the earlier borrowings and meet the increasing revenue expenditure.
During 2014-15, the overall excess expenditure of Rs 74.79 crore registered under Grants/Appropriations was the result of excess of Rs 1,585.69 crore, offset by saving of Rs 1,510.90 crore. The excess expenditure of Rs 1,585.69 crore of 2014-15 in addition to Rs 5,055.89 crore for the years 2009-14 requires regularisation of the State Legislature.
Out of total grants and loans of Rs 3,065 crore advanced to various departments, utilisation certificates (UCs) for a substantial proportion (78 per cent) of these grants worth Rs 2,387 crore remained to be sent to the Accountant General (A&E) as of March 2015 by various Departments.