Bhopal(Madhya Pradesh): The state government’s borrowing from market and central government saw a steep hike during the Covid-period in 2020-21, amounting to Rs 28064 crore while it didn’t achieve any of three key fiscal targets during the period, as per
Comptroller and Auditor General (CAG) of India’s report for the year, tabled in the state assembly on Thursday.
“Due to low economic activity during Covid pandemic, the revenue deficit of state increased and hence fiscal deficit also increased. State government borrowing from market loans and loans from GoI increased by Rs 28063 crore from Rs 20197 crore in 2019-20 to Rs 48260 crore in 2020-21”, states the report.
The report says the state government met the three per cent limit of guarantee redemption fund and loan repayment criteria but it didn’t honour its commitment/obligation made in its MoU with GoI and the power distribution companies under UDAY scheme.
Underlining lack of financial management the report says the investment held in ‘cash balance investment account’ by the government stood at Rs 7060.93 crore and Rs 18069.32 crore at the end of 2019-20 and 2020-21 respectively.
“Keeping the huge amount in ‘cash balance investment account’ at lower rate of interest while borrowing at higher rate has financial implications. The high level of investment in such an account at the end of these financial years indicated there is a need for better cash management”, states the report.
PUBLIC SECTOR UNDERTAKINGS
On financial performance of state public sector undertakings (PSUs) the report says as on March 31, 2021 there were 70 state PSUs including three statutory corporations and eight government controlled other companies. Out of 70, there was 31 inactive state PSUs. These PSUs are inactive from 3 to 31 years. Thus, only 39 PSUs accounts could be audited.
“During 2020-21, these 39 PSUs registered turnover of Rs 99211.48 crore, which was equal to 10.81% of the GSDP of Madhya Pradesh”, said the report.
The report says the investment of the state government in equity and long-term loans in 70 PSUs was Rs 62065.12 crore against total investment of Rs 106152.75 crore at the end of March 31, 2021. The outstanding long-term loans of these PSUs as on March 31, 2021 increased to Rs 31820.52 crore from Rs 31382.78 crore during the previous year (2019-20).