J&K sinks in liabilities, reveals CAG report

SRINAGAR: The overall fiscal liabilities of Jammu and Kashmir has increased by 11 per cent from Rs 36,267 crore (March 2012) to Rs 40,265 crore (March 2013), according to the Comptroller and Auditor General’ report.
It said that at the end of 2012-13, the accumulated liabilities were 1.54 times of the government’s revenue receipts during 2012-13 and 5.04 times government’s own tax non-tax revenues.
Due to liquidation of high cost overdraft with Jammu and Kashmir Bank with the help of Rs 1000 crore grants-in-aid from New Delhi, the debt burden of the state has moderated, the CAG said.
It said the actual GSDP has turned out to be significantly higher than that projected by the 13th Finance Commission though the commission had excluded certain one-off borrowings while setting the targets for 2010-15. “Total liabilities as defined under the FRBM Act are not being reported or monitored or targeted,” the report said.
The opening cash balance for 2012-13 was Rs 961 crore, and it decreased by Rs 870 crore during 2012-13.
“This drawdown was necessitated due to increase in non-plan expenditure that could not be offset by reduction in plan expenditure or financed through any other means of financing,” the CAG said.
It said the market loans liabilities are increasing which exposes the state to market risks.
“The percentage of market loans to total liabilities increased from 29.6 per cent in 2008-09 to 38.5 per cent in 2012-13. Gradually increasing reliance on open market for debt financing exposes the state to market risks in due course,” it said.
“Presently, the maturity profile is such that there is no redemption pressure in short and medium term,” it added.