SHIMLA: The report of the Comptroller and Auditor-General of India tabled in the Himachal Assembly on Friday has pointed out the State Government's failure to meet various targets set by the Eleventh Finance Commission for bringing about financial discipline.

Against the admissible non-Plan revenue grants of Rs 4549.26 crores, the State Government received revenue deficit grants of Rs 3,978.07 crores and incentive fund of Rs 156.96 crores during 2000-05.

A grant of Rs 414.23 crores was thus not availed during 2000-05. Action on the commitments made by the State Government in a memorandum of understanding signed with the Central Government in May 2004 was not adequate, said the CAG report.

It says the Government could not maintain the minimum cash balance with the Reserve Bank of India and obtained ways and means advances of Rs 1,579 crores on 93 days and overdraft of Rs 320 crores on 27 days.

An interest of Rs 2.34 crores was paid during the year on ways and means advances and overdraft. The fiscal liabilities of the State increased from Rs 8,621 crores in 2000-01 to Rs 16,533 crores in 2004-05 at an average growth rate of 18.57 per cent.

According to the report, the State Government has given guarantees worth 4751 crores. The overall expenditure of the State comprising revenue expenditure, capital expenditure and loans and advances increased at an annual trend of 8 per cent from Rs 4918 crores in 2000-01 to Rs 6471 crores in 2004-05. Expenditure on general services and interest payments considered as non-developmental accounted for 42.54 per cent of the total expenditure in 2004-05.

The report further says that the expenditure incurred by the Government, substantially in excesses of the amounts sanctioned by the State legislature, remained to be regularised in terms of Article 205 of the Constitution of India.

As of August 2005, excess expenditure of Rs 15,931.40 crores incurred during 2004-05 remained to be regularised.

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