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Maharashtra govt spends loans to repay interests: CAG

CAG appears to have expressed its concern over poor financial management by the state government.

Written by Shubhangi Khapre | Nagpur |
December 17, 2016 2:25:39 am
maharashtra govt loan, maharashtra cag, cag, indian express Image for representational purposes.

The state government’s increased borrowings went towards repaying the principal and interest of loans instead of creating capital investments. These are the concerns raised by the Comptroller and Auditor General of India in its report ‘Accounts at a Glance’ for year 2015-16. Thus, CAG appears to have expressed its concern over poor financial management by the state government.

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The CAG, while studying the proportion of borrowed funds on capital expenditure, said, “It is desirable to fully utilise borrowed funds for the creation of capital assets and to use revenue receipts for the repayment of principal and interest.”

The state government, however, did not utilise the borrowings fully for capital expenditure. The less spending was in the range of 21 per cent to 45 per cent during the last five years.

While stating that the internal debt of Rs 37,392 crore raised during 2015-16 was mainly used for discharge of debt obligations (Rs 9,138 crore) and payment of interest (Rs 20,816 crore), it pointed out that total loans and advances made by the state government during 2015-16 were Rs 1,115 crore. Whereas, the outstanding total loans and advances to be recovered from governmentcorporations/companies, non-government institutes, local bodies, etc., at the end of 2015-16 were Rs 22,072 crore.

Commenting on the debts and liabilities, CAG said, “The liabilities of the state government increased by Rs 31,595 crore from Rs 3,19,746 crore in 2014-15 to Rs 3,51,341 crore during 2015-16. “Whereas, public debt comprising internal debt of the state government and loans and advances from the central government increased by Rs 27,933 crore from Rs 2,37,455 crore in 2014-15 to Rs 2,65,388 crore at the end of current year.

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