Telangana stares at Rs 1.43 lakh cr public debt as on FY18-CAG

Hyderabad, Sep 22 (PTI): Telangana's total debt stood at

nearly Rs 1.43 lakh crore by the end of 2017-18, an 18 per

cent increase over the preceding year, the CAG said in its

report tabled on Sunday in the state assembly.

The Comptroller and Auditor General also expressed

concern that the interest payments by the government, relative

to revenues, were higher at 12.19 per cent against the target

of 8.31 per cent fixed by the 14th Finance Commission.

"Outstanding public debt (Rs 1.42,918 crore) increased by

18 per cent in 2017-18 over the preceding year at a higher

place than growth of GSDP (Gross State Domestic Product).

Interest payments are increasingly consuming revenue

receipts. The interest payments relative to revenue receipts

were much higher at 12 per cent against the target of 8.31 per

cent fixed by the 14th Finance Commission," the CAG said.

The ratio of debt repayment to tax revenue also increased

from six per cent in 2015-16 to 8.05 per cent 2017-18,it said.

The maturity profile of outstanding public debt as on

March 2018 showed that Rs 65,740 crore, 48 per cent of total

outstanding debt, is to be repaid over the next seven years,

the auditor said in the report.

"The state government may undertake a study supported by

future projections to measure its total physical commitments

that the ability to meet them. Inform the risk assessment on

its future borrowing," CAG said in its recommendations.

The CAG report said the government had ensured decrease

in the cost of collection in the past three years prior to

fiscal 2018, indicating greater efficiency measured as cost of

tax collection as a percentage of tax collection.

The state government, which has placed creation of

infrastructure as a priority area since the formation of the

state, spent Rs 79,236 crore on capital projects from 2014 to

2018.

Within the capital projects, more than 50 per cent of the

capital expenditure was on irrigation and flood control,

except in 2016-17.

Delays in completion of projects, however, not only

adversely affected quality of the expenditure, but also

deprived the state of intended benefits and economic growth,

the CAG said.

In respect of 19 irrigation projects, whose original cost

was Rs 41,201 crore, delay ranging from three to 11 years led

to escalation of projected cost to Rs 1.32,928 crore,CAG said.

The state government did not disclose financial results

of any of the irrigation projects, it said. PTI GDK APR

APR APR