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J-K's debt pile grows to Rs 83,536 crore: CAG
The CAG expressed concern over J-K government's action of using borrowed funds for meeting current consumption and repayment of interest on outstanding loans.
The Comptroller and Auditor General of India (CAG) has pulled up Jammu and Kashmir government for its debt situation, stating that the union territory's overall debt has gone up to Rs 83,536 crore by October 2019.
The CAG expressed concern over J-K government's action of using borrowed funds for meeting current consumption and repayment of interest on outstanding loans.
"Using borrowed funds for meeting current consumption and repayment of interest on outstanding loans is not sustainable," it said, stressing that borrowed funds should ideally be used to fund capital creation and developmental activities.
"Outstanding overall debt as on 30 October 2019 was Rs 83,536 crore. The percentage of total debt repayment was 82.68 per cent of the total debt receipt during 1st April 2019, to 30th of October 2019, resulting in only 17.32 per cent total debt receipt available," latest CAG report said.
The CAG pointed out that government has internal debt amounting to Rs 45,429 crores, which constitute 54.38 per cent of total debt, while loans from government of India amounts to 1,237 crores (1.48 per cent) and liabilities on public account amounts to Rs 36,870 crores (44.14 per cent).
As per the CAG report, the fiscal deficit during 1 April 2019 to 30 October 2019 was Rs 4,728 crore. It can be seen that the market borrowings and excess of receipt over payments under small saving provident fund is major contributor in meeting J-K's Fiscal deficit.
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