Increase in Public Debt

• 31 Jul 2021

Why in News

• On July 30, 2021, Chhattisgarh Chief Minister Bhupesh Baghel told the Legislative Assembly that the total public debt of the state has increased by 20.85 percent to Rs 63,164.72 crore in 2019-20.

Key Points

• On the last day of the monsoon session, Chief Minister Bhupesh Baghel presented the report of the Comptroller and Auditor General of India while presenting the Finance and Appropriation Accounts of the Chhattisgarh Government for 2019 in the House.
• According to the report, the total public debt of Chhattisgarh has increased from Rs 52,254.22 crores (2018-19) to Rs 63,164.72 crores (2019-20).
• In 2019-20, the fiscal deficit was Rs 17,969.55 crores, which is 5.46 percent of GSDP and which exceeded the MTFP (Money Follows the Person Initiative) target of 2.99 percent of GSDP. During 2018-19, the state fiscal deficit was within the FRMB (Fiscal Responsibility and Budget Management) target of 3.07 percent of GSDP.
• The report said the gross budget for 2019-20 was Rs 1,06,913.44 crores. Against it, the gross expenditure was Rs 92,261.34 crores.
• The tax revenue stood at Rs 42,323.69 crores and the state’s own revenue rose to Rs 22,117.85 crores against Rs 21,427.26 crore (2018-19). The state received Rs 13,611.24 crores Grants in aid from the Centre as compared to last fiscal.
• The capital expenditure of the state government was Rs 8,566,39 crores, Rs 337.06 crores less as compared to 2018-19. The revenue deficit of Rs 9,608.61 crores constitutes 2.92 percent of Gross State Domestic Product (GSDP) during 2019-20.
• The state government has an off-budget liability of Rs 694.26 crores towards repayment of loans taken by various entities, in addition to its budgeted liabilities of Rs 78,712.46 crores.