Photo Courtesy: India Today Group
Guwahati: A recent report from the Comptroller and Auditor General of India has raised alarms over fiscal management in Assam, even as the state reports significant economic gains. Over the last five years, Assam's Gross State Domestic Product nearly doubled, jumping from Rs 3.39 lakh crore to Rs 6.43 lakh crore. While the state saw an annual growth rate of 18 percent and rising per capita income, auditors pointed to a concerning decline in revenue mobilization relative to the size of the economy.
Government finances are under pressure from high committed expenditures, including salaries, pensions, and interest payments. Pension costs have climbed to nearly 20 percent of revenue receipts, while interest payments have also seen a steady rise. Furthermore, subsidy spending surged significantly this year, largely due to a Rs 400 crore injection into the state's power distribution company. Financial transparency remains a concern, with Rs 23,240 crore in utilization certificates still pending.
Investment performance in State Public Sector Enterprises is another area of concern. Despite pumping over Rs 10,900 crore into 31 state-run enterprises, only one entity generated any return, contributing just Rs 15 crore to the state coffers. Meanwhile, the state's outstanding liabilities have grown to 26.84 percent of its total economic output.
Budget management issues were also highlighted, with the audit finding that the government failed to spend over Rs 23,000 crore of its allocated budget. The report noted unauthorized spending, including over Rs 500 crore incurred without proper provisions. Additionally, the state faces a massive backlog of excess expenditure dating back to 2006 that still requires formal legislative approval.
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