During 2020-21, J&K had revenue deficit of 138 Cr
The Comptroller and Auditor General of India (CAG) has pointed out that despite projection of revenue surplus of `28,436 crore in the budget estimate, Jammu and Kashmir had a revenue deficit of `138 crore in the year 2020-21.
CAG has observed that J&K has revenue deficit as there was less receipt (`38,604 crore) under Revenue Receipts. This was due to less receipt under Own Tax Revenue (`4,364 crore), Share of Union Taxes (`15,200 crore), Additional Resource Mobilization (`4,000 crore) and Grants in Aid from GoI (`15,052 crore) with respect to budget estimates. Revenue expenditure was less by `10,030 crore with respect to Budget Estimates.
The revenue deficit of `138.27 crore during 2020-21, which was 0.08 per cent of GSDP. During the year 2020-21 Union Territory of Jammu and Kashmir had Fiscal Deficit of `10,693.36 crore, which was 6.07 per cent of GSDP.
It has further observed that Goods and Services Tax (GST) Compensation is the revenue of the State Government under GST (Compensation to States) Act, 2017.
However, in addition to receiving the GST compensation of ` 2,171.22 crore as revenue receipts during the year 2020-21, the Union Territory (UT) of Jammu and Kashmir also received back-to-back loans of `2,099.80 crore under debt receipts of the UT Government, with no repayment liability for the UT.
In addition, there were assets and liabilities of `1,05,056 crore of erstwhile State of Jammu and Kashmir ending 30 October 2019 which are to be distributed between Union Territory of Jammu and Kashmir and Union Territory of Ladakh.
There was Revenue Deficit of `138.27 crore in the accounts of Union Territory of Jammu and Kashmir for the year 2020-21 which was understated by `250.56 crore due to misclassification of Revenue Expenditure as Capital Expenditure, Non Payment of Interest on State Compensatory Afforestation Fund and Deposit, Short Contribution to Defined Contribution Pension Fund.
There was Fiscal Deficit of `10,693.36 crore during 2020-21 which was understated by `60.75 crore due to Non Payment of Interest on State Compensatory Afforestation Fund, State Compensatory Afforestation Deposit and Short Contribution to Defined Contribution Pension Fund as shown in the table above.
At the end of the year 2020-21, the overall outstanding debt/liabilities of the Union Territory were understated by `755.65 crore by not accounting for the Suspense, Miscellaneous and Remittance balances, thereby understating the same with respect to GSDP by 0.43 per cent.
Liabilities of Union Territory of Jammu and Kashmir to GSDP after taking into account the liability on account of Suspense and Miscellaneous and Remittance will increase from 8.441 per cent to 10.06 per cent.
