CAG pegs J&K revenue deficit at Rs 138.27 crore

Tribune News Service

New Delhi, August 9

The Comptroller and Auditor General (CAG) in its latest report revealed that there was a revenue deficit of Rs 138.27 crore in the accounts of the UT of Jammu and Kashmir for 2020-21, which was understated by Rs 250.56 crore.

In the report, which was tabled in Parliament on Monday, the CAG further said there was fiscal deficit of Rs 10,693.36 crore during 2020-21, which was understated by Rs 60.75 crore “due to misclassification of revenue expenditure as capital expenditure, non-payment of interest on state afforestation fund and deposit, ‘short contribution’ to Defined Contribution Pension Fund”.

In the report, the CAG revealed that during the financial year, the government of the UT of J&K invested Rs 83.27 crore in two companies and one corporation and had total investment of Rs 162.39 crore as on March 31, 2021.

However, the erstwhile state government had cumulative investment of Rs 4,617.16 crore in 38 companies (Rs 4,148.83 crore), three statutory corporations (Rs 374.34 crore), eight co-operative institutions and local bodies (Rs 47.83 crore), two rural banks (Rs 45.82 crore) and two joint stock companies (Rs 0.34 crore) ending October 30, 2019 which had not been divided between the UTs of J&K and Ladakh, it said.

During 2020-21, the balance under reserve funds of the UT of J&K was Rs 771.13 crore, it said, adding that there was also a cumulative aggregate balance of this at the end of October 30, 2019 amounting to Rs 2,806 crore, which was yet to be bifurcated between the two UTs till March 31, 2021.

Misclassification of expenditure

There was fiscal deficit of Rs 10,693.36 crore during 2020-21, which was understated by Rs 60.75 crore “due to misclassification of revenue expenditure as capital expenditure, non-payment of interest on state afforestation fund and deposit, ‘short contribution’ to Defined Contribution Pension Fund”.

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