GUWAHATI: Assam is grappling with a mounting fiscal crisis. The audit report of the Comptroller and Auditor General of India revealed a grim picture of the state's financial health, revealing a significant revenue deficit, growing fiscal deficit, and a burgeoning public debt.
The numbers are alarming. In 2022-23, the state's revenue deficit stood at ₹12,072.35 crore, or 2.45% of its Gross State Domestic Product (GSDP).
The fiscal deficit, which measures the overall shortfall in government revenue compared to total expenditure, was at ₹30,204.83 crore, or 6.12% of GSDP. This is a significant increase from previous years.
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One of the primary contributors to this financial strain is the state's increasing expenditure on committed liabilities like salaries, pensions, and interest payments. These expenses have risen steadily over the past five years, reaching ₹55,122.72 crore in 2022-23, or 61.42% of revenue receipts.
The state's public debt has also ballooned. It has grown at a rapid pace, increasing by 107.34% from ₹59,425.61 crore in 2018-19 to ₹1,23,214.80 crore in 2022-23. This has led to a significant increase in interest payments, further straining the state's finances.
Other factors contributing to Assam's fiscal woes include:
Misclassified expenditure: The state government misclassified ₹6,668.99 crore of grants-in-aid as capital expenditure instead of revenue expenditure, leading to an overstatement of capital expenditure and an understatement of revenue expenditure.
Underinvestment in disaster response fund: The state has failed to invest the balances in its State Disaster Response Fund (SDRF) as per guidelines, leading to lost interest income and understated revenue deficit.
Inefficient public sector enterprises: Several state-owned enterprises are operating at a loss, draining the government's resources.
These challenges pose a significant threat to Assam's economic stability and development.
To address these issues, the state government must implement measures to increase revenue, reduce expenditure, and improve the efficiency of public sector enterprises. Additionally, it must adhere to regulatory guidelines and manage its public debt responsibly.
