Uttarakhand government badly trapped in debt trap, read this report laid on the floor of the house

This report of the CAG for the year ended 31 March 2021 was laid on the Table of the Legislative Assembly. The CAG has also raised questions on budget short spending. According to the CAG report, due to the high percentage of repayment of loan and interest on the total borrowing by the state government, it does not get much benefit.
The Uttarakhand government is getting entangled badly in the debt trap. The situation is that every year she has to spend an amount equal to 71 percent of the loan she is taking for her needs, on repaying the old loan and interest on it. This has been revealed in the audit report of the Comptroller and Auditor General of India.
This report of the CAG for the year ended 31 March 2021 was laid on the Table of the Legislative Assembly on Friday. The CAG has also raised questions on budget short spending. According to the CAG report, due to the high percentage of repayment of loan and interest on the total borrowing by the state government, it does not get much benefit.
Outstanding loans are increasing at the rate of 13.66 per cent. In the period from 2016-17 to 2020-21, the state government took a loan of Rs 29168 crore. As of 2020, the state had a debt of Rs 73,751 crore, which is estimated at 30.05 percent of the Gross State Domestic Product.

The CAG is of the view that whatever loans are being taken by the government, assets should be created so that it can be benefited. The CAG has considered high level of credit as detrimental to economic growth. In such a situation, there is pressure on the governments to increase taxes and reduce expenditure.
Year wise details of loan on State Government
Year Loan (in Crore) Trend of Repayment (percentage):
2016-17 44,583 65.74
2017-18 51,831 68.27
2018-19 58,039 80.92
2019-20 65,982 95.98
2020-21 73,751 70.90
(Note: Percentage of repayment of loan plus interest thereon on total borrowing)

Supplementary budget was also brought, yet 5,590 crores were saved:
The CAG found that in 2020-21, the state government had presented a budget of Rs 53526.97 crore. A supplementary budget of Rs 4,063.79 crore was also brought in the middle. But at the end of the financial year, an amount of Rs 5,590.65 crore i.e. more than the supplementary provision remained unspent. The CAG did not consider this trend to be correct. The government spent only Rs 52,000.11 crore out of a total of Rs 57,590.76 crore.
1553 crore could not be spent on construction works:
The CAG has made a strong comment on the non-utilization of Rs 1553 crore 78 lakh in the original budget and the supplementary budget. The CAG has said that some schemes remain incomplete due to paucity of funds. People do not get their benefit. In addition, the cost of the plans also increases. The report said that the government made a total provision of Rs 5,224.04 crore, including the supplementary budget, for spending on construction schemes, but could spend only Rs 3,670.26 crore.

Not accounted for more than 42 thousand crores:
The amount of 42 thousand 873 crore spent other than the grant passed by the Vidhan Sabha from 2005-06 to 2019-20 has not been accounted for so far. The CAG has mentioned it prominently in its report as well as asked the assembly to regulate the amount. The report quoted the Uttarakhand Budget Manual as saying that if after the close of the year an amount is spent in excess of the appropriation, it should be regularized by presenting it to the Assembly on the basis of the recommendation of the Public Accounts Committee. But in the years 2005-06 to 2019-20, the excess expenditure of 42,873.61 crores has not been regularized by the Vidhan Sabha yet. That is, the assembly has not got any account in this regard.
Government could not spend supplementary grant in 29 departments
On behalf of the state government, the budget is released from the supplementary grant to the departments to meet their needs. But 29 departments have not spent the supplementary grant. In the CAG report, the supplementary grant has been described as unnecessary. In the financial year 2020-21, a budget provision of Rs 38530 crore was made by the government to 29 government departments. In this, the departments spent Rs 34635 crore. The government has given a supplementary grant of 3421 crores to the departments for meeting the revenue and capital items. But by the end of the financial year, the budget of 7316 crores was left with the departments. which is more than the supplementary grant. The CAG has raised questions on giving unnecessary supplementary grants.

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