Nagpur, Dec 14 (IANS) The Comptroller and Auditor General of India (CAG) has picked holes in the utilisation of borrowed funds by the Maharashtra government on capital assets, use of internal debt and also in debt servicing in the year 2024-25.
CAG, in its report titled “Accounts at a glance 2024-25”, said that 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. However, the State Government could not utilise the borrowed funds fully on capital assets in the year 2024-25, it observed.
According to the report, which was tabled on Saturday in the state legislature, against the borrowed funds of Rs 1,43,635 crore, the state government could spend only Rs 82,773 crore on capital expenditure. In 2023-24, against the borrowed funds of Rs 1,25,988 crore, it was Rs 72,573 crore, in 2022-23 against the borrowed funds of Rs 94,702 crore, it was Rs 61,644 crore, in 2021-22 against the borrowed funds of Rs 90,587 crore, the capital expenditure was Rs 46,670 crore and in 2020-21 against the borrowed funds of Rs 1,85,516 crore, the capital expenditure was paltry Rs 29,687 crore.
Further, the CAG has observed displeasure over the use of the internal debt. According to CAG, the Internal debt of Rs 1,23,000 crore raised during 2024-25 was mainly used for the discharge of debt obligations (Rs 40,440 crore) and a portion of the payment of interest of Rs 53,455 crore.
As far as the servicing of debt is concerned, CAG said there was an increasing trend till 2022-23, followed by a decreasing trend till 2024-25. “However, the entire public debt receipts were utilised for Debt servicing,” added the auditor. The Gross Capital expenditure during 2024-25 fell short of the Budget Provision by Rs 56,590 crore. The lower disbursement was mainly under capital outlay (Rs 39,265 crore).
CAG has also made harsh observations about the state government’s rush of expenditure in the closing month of the financial year. It has referred to the Bombay Financial Rules, 1959, which clearly says that a rush of expenditure in the closing month of the financial year should be avoided.
“Contrary to this, expenditure in respect of 18 departments exceeding Rs 100 crore and constituting more than 25 per cent of the total expenditure was incurred during March 2025. Major departments resorting to a rush of expenditure are Housing Department (90 per cent); Environment and Climate Change Department (77 per cent); Planning Department (65 per cent); Minorities Development Department (53 per cent); Tourism and Cultural Affairs Department (50 per cent),” said CAG.
It further said to maintain the minimum level of balance of five per cent of the outstanding guarantees, which is Rs 3,974.35 crore as on March 31, 2025, the Government was required to contribute Rs 2,304.96 crore during 2024-25. However, the Government contributed only Rs 430.74 crore, resulting in an understatement of revenue expenditure.
--IANS
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