CAG Report On Maharashtra’s Finances amid pandemic: ‘Fiscal deficit maintained; delay in submission of utilisation certificates’

However, the revenue deficit of Rs 17,116 crore in 2019-20 increased to Rs 41,141.85 crore in 2020-21. During 2020-21, the fiscal liability (total outstanding to debt) to GSDP ratio at 20.15 per cent was higher than the targets prescribed in the Maharashtra Fiscal Responsibility and Budgetary Management Act, 2005.

During the five-year period of 2016-21, the state could achieve revenue surplus only during Rs 2017-18 and 2018-19.

The CAG observed that the extraordinary situation of the pandemic, the complete lockdown and then gradual removal of restrictions had impacted economic activities. As compared to the previous year, while the state’s tax revenue declined steeply by 13.07 per cent, capital outlay decreased by 18.48 per cent and market borrowings increased drastically by 51.59 per cent.

The outstanding debt (fiscal liabilities) of the state government increased from Rs 3,95,858 crore in 2016-17 to Rs 5,48,176 crore at the end of 2020-21. The outstanding debt grew by 12.43 per cent due to an increase in the outstanding internal debt worth Rs 46,903 crore and loans from the Union government worth Rs 14,025.29 crore, which included Rs 11,977 crore in lieu of GST compensation.

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The CAG has, however, flagged delay in submission of utilisation certificates (UC). The Bombay Financial Rules, 1959, provides that for grants received during a year for specific purposes, UCs should be obtained by departmental officers from grantee institution and after verification, the UCs should be forwarded to the accounting officers.

As per the CAG, as on June 30, 2021, 28,240 UCs amounting to Rs 42,861.97 crore was outstanding. The report said that the urban development department has the largest pendency of UCs worth Rs 11,404.99 crore, followed by school education and sports departments (Rs 8398.14 crore).