Karnataka's debt was at Rs 17,766 crore in 2018-19, says CAG report

BENGALURU: Karnataka’s net debt for the period 2018-19 was Rs 17,766 crore, an increase of 255 per cent over the previous year. The source of borrowings was open market, with a predominant share of 55 per cent, while public account borrowings constituted 27 per cent, National Social Security Fund 6%, Government of India loan 5%, off-budget borrowings 5%, and negotiated loans 2%. This period pertains to the time when HD Kumaraswamy was chief minister, and the coalition government was in power for the most part, while Siddaramaiah was chief minister for about a month. This was part of the State Finance Audit report and appropriation accounts of the CAG, presented in legislature on Tuesday.  

The report said that as far as financial management and budgetary control was concerned, the  total provision was Rs 2.45 lakh crore and expenditure was about Rs 2.2 lakh crore, whileRs 25,139 crore remained unspent. The CAG reported that in an error, expenditure of Rs 2,901 crore was wrongly classified.The auditors noted that supplementary provision of Rs 1,319 crore in about 20 cases was found to be unnecessary. They pointed out that reappropriation of funds in 27 cases was “injudicious”, resulting in unutilised provision or excess provision.  

The report noted that supplementary budget was not assessed for being fiscally neutral as it failed to exhibit curtailment of expenditure/ augmentation of revenue.The CAG report also noted that Personal Deposit Accounts showed an increasing trend of 49 per cent compared to the previous year, and stood at Rs 4,085 crore. The report noted that out of 73 personal deposit accounts, 21 accounts were inoperative.

The report said the government should ensure adjustment of Abstract Contingent Bills within the stipulated period, and that about 25 per cent of Abstract Contingent Bills were not cleared because the necessary bills were not submitted. Under agriculture and horticulture, expenditure on gardens was Rs 2.78 crore, the report noted.