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This is an archive article published on April 7, 2012

CAG slams HP govt for mounting liabilities,misuse of central funds

The report of the CAG,tabled in the state Assembly on Friday,pointed towards the poor health of the state’s finances with liabilities exceeding by 46 per cent in the past four years — from Rs 18,071 crore in 2006-07 to Rs 26,415 in 2010-11.

The Comptroller and Auditor General (CAG) of India has pulled up the Himachal government for mounting fiscal liabilities,high expenditure on salaries,non-development,delays in utilisation of funds under central schemes like Sarva Shikha Abhiyan and faulty implementation of PDS schemes.

The report of the CAG,tabled in the state Assembly on Friday,pointed towards the poor health of the state’s finances with liabilities exceeding by 46 per cent in the past four years — from Rs 18,071 crore in 2006-07 to Rs 26,415 in 2010-11. “These liabilities stood at 2.08 times higher than the revenue receipts at the end of 2010-11,” the report stated.

The findings also revealed that the government has not been able to achieve three out of the eight targets fixed in the Fiscal Responsibility and Budget Management (FRBM) during 2010-11. “The state government was required to set up a consolidated sinking fund as recommended by the 12th Finance Commission for amortisation of market borrowings as well as other loans and debt obligations,but it is yet to do so,” the report pointed out.

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It added that revenue on general services like interest payments on loans — a non-development sector — has increased. As many as Rs 5,951 crore had been spent on salaries and wages during 2010-11 — Rs 1,496 crore (33 per cent) more than projected amount of Rs 4,455 crore.

Moreover,the government did not get significant returns from investments on Rs 2,864 crore in different sectors.

The report also stated that the government borrowed from the market in 2006-2011 at an average interest rate of 8.81 per cent,but the return from these investments was just 1.78 per cent.

The CAG has also taken the government to task for lack of budgetary controls and excess expenditure of Rs 1,444.32 crore incurred during 2008-2010,which had exceeded the sanctions of the legislative Assembly.

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Referring to Sarva Shiksha Abhiyan,the report stated that against an approved outlay of Rs 254.82 crore,the state could spent only Rs 218.40 crore (87 percent). This was due to non-functioning of schools and vacant posts of teachers among others. Even under the Pradhan Mantri Gram Sadak Yojana,Himachal has failed to utilise the sanctioned funds.

On PDS,the report claimed that benefits of providing foodgrain at retail price was not extended to BPL families,thereby putting an extra burden of Rs 35.11 crore on them. Moreover,the state government has not taken any step to cancel “ghost” ration cards,thus depriving genuine BPL families to get ration at cheaper rates,it added.

House adjourned sine die

The Himachal Pradesh Assembly on Friday adjourned sine die after passing the HP Lokayukta Bill and four other legislations raising the salaries and emoluments of ministers,MLAs,Speaker,deputy Speaker and the chief minister. The five-week budget session had 21 sittings,including two private member days. The Governors’ address and state budget for 2012-13 along with several legislations were passed. While addressing mediapersons later,Chief Minister Prem Kumar Dhumal said that this may be the last session of the current Vidhan Sabha. “If it exists,there could be a Monsoon Session,otherwise this may be the last session,” he said,giving rise to speculations that instead of November,Assembly elections can be held earlier in the state.

Anurag to campaign for Annandale

BJP MP and Bharatiya Janata Yuva Morcha president Anurag Thakur will present a demand charter to Chief Minister Prem Kumar Dhumal on Saturday seeking transfer of the Annandale ground to the state government for developing it as a cricket stadium. Thakur will lead a march from the Ridge to the chief minister’s residence to hand over the charter.

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