National
Maha: CAG raises alarm over rising fiscal stress due to mismatch between receipts & expenditure
Mumbai, July 12 (IANS) Comptroller and Auditor General of India (CAG) has raised an alarm over the rising fiscal stress in Maharashtra due to the continuous mismatch between receipts and expenditure.
CAG in its report on state finances for the year ended March 31, 2023, which was tabled on Friday in the state Assembly, said that the share of revenue deficit in fiscal deficit indicates the extent to which borrowed funds were used for current consumption.
However, persistently the high ratio of revenue deficit to fiscal deficit indicates that the asset base of the state is continuously being eroded and a part of borrowings (Fiscal Liabilities) does not have any asset backup.
Even though the budgeting exercise carried out by the state government needs to be more realistic as 18.19 per cent of the total provision remained unutilised, the total expenditure incurred during the year 2022-23 was six per cent less than the original budget and the supplementary budget constituted 15 per cent of the original budget.
Supplementary grants/appropriations as well as re-appropriation were obtained without adequate justification as large amounts remained unutilised.
As far as fiscal sustainability risk is concerned, the CAG observed that the debt stabilisation indicator is currently static rather than conclusively ascending.
“The debt stabilisation indicator, consisting of quantum spread and primary deficit, declined in the period (2019-21) and has since shown a gradual increase in the post-pandemic year, CAG said.
The CAG said that it has not yet reached a stable state for debt stabilisation. Moreover, the improvement in Public Debt to GSDP and Overall Liability to GSDP after the pandemic suggests that the debt situation is not deteriorating but it has not yet reached a threshold wherein it can be concluded that debt stabilisation is on an upward trend.
The outstanding debt (fiscal liabilities) of the state increased from Rs 4,36,781.94 crore in 2018-19 to Rs 6,60,753.73 crore at the end of 2022-23. The outstanding debt to GSDP ratio of 18.73 per cent during 2022-23 was higher than the limits prescribed by the Fiscal Responsibility Budget Management (FRBM) Act (18.14 per cent).
Although the Outstanding Debt for the year 2022-23 remained close to the projections made as per Medium Term Fiscal Policy, the nominal GSDP did not reach the projected levels. Therefore, the state was not able to achieve the targets set for Total Outstanding Liability to GSDP ratio.
“Taken together, the committed and inflexible expenditure in 2022-23 was Rs 2,67,945.58 crore; 65.73 per cent of the revenue expenditure. Upward trend on committed and inflexible expenditure leaves the Government with lesser flexibility for other priority sectors and capital creation,” said CAG.
CAG has made a slew of suggestions including the Government may consider mobilising additional resources through tax and non-tax sources so as to move towards revenue surplus status.
The government may take steps to ensure better value for money in investments. Otherwise, funds borrowed at high cost will continue to be invested in projects with low financial returns.
The state government needs to monitor and manage its debt levels to ensure long-term fiscal stability by adopting remedial measures to rationalise expenditure, explore further sources, expand the revenue base, and invest in revenue-generating assets.
Moreover, CAG has stressed that the state government should formulate a realistic budget based on reliable assumptions considering the needs of the departments and their capacity to utilise the allocated resources.
“An appropriate control mechanism needs to be instituted by the government to enforce proper implementation and monitoring of budget to ensure that savings are curtailed, large savings within the grant/appropriation are controlled and anticipated savings are identified and surrendered within the specified time frame. Priority should be accorded to all cases of pending regularisation of excess expenditure over the budget provision,” said CAG.
–IANS
sj/dan
National
Defence Ministry: Year 2025 will be year of reforms
On Wednesday, the Defence Ministry announced that 2025 will be designated as the “Year of Reforms,” with a primary focus on establishing integrated theatre commands to enhance collaboration among the three branches of the military.
These reforms are aimed at transforming the armed forces into a technologically advanced, combat-ready force capable of executing multi-domain integrated operations, the ministry stated.
The initiative will emphasize emerging domains such as cyber and space, alongside cutting-edge technologies like artificial intelligence, machine learning, hypersonics, and robotics.
Defence Minister Rajnath Singh described the “Year of Reforms” as a pivotal milestone in the modernization of the armed forces.
“It will set the stage for significant advancements in the nation’s defense capabilities, ensuring the security and sovereignty of India in the face of 21st-century challenges,” he said.
National
A 3.2 magnitude tremor struck Gujarat’s Kutch district on Wednesday morning
A 3.2 magnitude tremor struck Gujarat’s Kutch district on Wednesday morning, according to the Institute of Seismological Research (ISR).
The district administration reported no casualties or property damage following the quake.
The tremor occurred at 10:24 am, with its epicenter located 23 kilometers north-northeast (NNE) of Bhachau, as per the Gandhinagar-based ISR.
Last month, the region experienced four seismic events exceeding a magnitude of 3, including a 3.2 magnitude tremor just three days ago, with its epicenter also near Bhachau.
Earlier tremors in the area included a 3.7 magnitude earthquake on December 23 and a 3.2 magnitude event on December 7, according to ISR reports.
Kutch was also jolted by a 4.0 magnitude earthquake on November 18, 2024. On November 15, a 4.2 magnitude quake hit Patan in north Gujarat, based on ISR data.
Gujarat is considered a high-risk earthquake zone, having experienced nine major earthquakes over the past 200 years, according to the Gujarat State Disaster Management Authority (GSDMA). The 2001 earthquake in Kutch, which occurred on January 26, was the third-largest and second-most destructive in India in the last two centuries, according to the GSDMA.
National
Diljit Dosanjh faces legal action over concert songs
Singer and actor Diljit Dosanjh’s much-anticipated New Year’s Eve concert in Ludhiana faced legal hurdles after a complaint was filed by Punditrao Dharenavar, an assistant professor from Chandigarh.
Following the complaint, the Deputy Director of the Women and Child Department, Government of Punjab, issued a formal notice to Ludhiana’s District Commissioner, urging them to prohibit Dosanjh from performing specific songs during his live show on December 31, 2024.
The notice specifically targets songs accused of promoting alcohol, including Patiala Peg, 5 Tara Theke, and Case (Jeeb Vicho Feem Labbiya), even if the lyrics are slightly modified. The complaint points to previous warnings issued to Dosanjh by various commissions advising against performing these controversial tracks.
Despite these warnings, the singer allegedly continues to perform the songs with minor alterations. Dharenavar raised serious concerns about the influence of such music on young audiences, especially when minors are present at live events.
Adding to the controversy, Dharenavar referenced a 2019 Punjab and Haryana High Court ruling, which directed law enforcement to ensure that songs promoting alcohol, drugs, or violence are not played at public events, including concerts. This ruling underscores the legal basis for the complaint and has further intensified the scrutiny surrounding the event.
National
UP Minister’s convoy overturns, 5 person injured
Five people sustained injuries when a vehicle in the convoy of Uttar Pradesh Minister and Nishad Party chief Sanjay Nishad overturned into a ditch near Januan village in the Khejuri Police Station area of Ballia district late last night.
Sanjay Nishad shared details of the incident, stating that the accident injured five party workers, including four women.
“I was traveling with the convoy to participate in the Constitutional Rights Yatra organized by the party on Tuesday night. Near Januan village in the Khejuri area, one of the vehicles following the convoy lost control while trying to avoid an animal and overturned into a ditch,” Nishad explained.
The injured individuals have been identified as Rakesh Nishad, Ramrati, Usha, Geeta, and Iravati Nishad.
Senior police and administrative officials quickly arrived at the scene following the incident to oversee the situation.
National
Suchir Balaji’s mother alleges Murder
The mother of Suchir Balaji, a 26-year-old former OpenAI researcher found dead after accusing the company of copyright violations, has alleged that her son was “murdered” and called for a Federal Bureau of Investigation (FBI) probe.
Poornima Rao, Suchir’s mother, claimed her son’s death was a “cold-blooded murder” that authorities wrongly ruled as suicide. She further disclosed that a private autopsy report conflicted with the findings of the initial police investigation.
Rao alleged that her son’s apartment had been “ransacked” and cited evidence of a struggle in the bathroom, including bloodstains that suggested he had been assaulted.
“We hired a private investigator and conducted a second autopsy to uncover the truth. The private autopsy does not confirm the cause of death stated by the police. Suchir’s apartment was ransacked, there were signs of a struggle in the bathroom, and it appears he was hit based on blood spots. This is a cold-blooded murder being misclassified as a suicide. Lobbying in San Francisco won’t deter us from seeking justice. We demand an FBI investigation,” Rao wrote on X.
Elon Musk reacted to Rao’s post, commenting, “This doesn’t seem like a suicide.”
Balaji was discovered dead in his San Francisco apartment months after accusing OpenAI of violating copyright laws during the development of ChatGPT, as reported by Fox News. Despite these claims, the San Francisco Police Department found no evidence of foul play and ruled the death a suicide.
On October 24, shortly before his death, Balaji voiced doubts about the “fair use” defense in generative artificial intelligence. “I recently participated in a NYT story about fair use and generative AI, and why I’m skeptical ‘fair use’ would be a plausible defense for a lot of generative AI products,” he wrote on X.
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