AGARTALA, October 3 (TIWN): Amidst the enormous central grant involving Centrally Sponsored Scheme (CSS) and 9:1 Central State bearing ratio as a special category state, Tripura has seen a fiscal deficit of Rs.7683 crore in the Financial Year (FY) 2012-13 with a sharp rise in the figure as regards FY 2011-12’s figure of Rs. 6871 crore. More significantly, the lions share contributor of the deficit, the internal borrowings has risen from Rs. 3558.87 (FY 2011-12) crore to Rs.4108.13 crore in 2012-13. Thus the internal borrowings constituted 58.27 % of total revenue receipts where the total debt was 108.97 % of total revenue. Relating to the same, the state has been failed to keep the fiscal deficit within the revised price estimate of Rs. 7534.99 crore for FY 2012-13. The fiscal deficit had showed an upward trend primarily because of rise in internal borrowings and receipts from the Public Accounts & Reserve Funds. However, the loans and advance from Government of India (GoI) was reduced from Rs. 406.97 crore to Rs.379.24 crore (2012-13).

The graph of deficit has been scaling new heights since FY 2008-09. From an amount of Rs. 5066.51 crore in FY 2008-09 an approximate 10 % increase is being observed if last FY’s 

(2012-13) figure is taken into consideration. Needless to say, this Year on Year (YoY) rise in fiscal deficit over past few years, will hurt the pockets of the common people of the state in the times to come

However, the state managed well to keep the percentage of fiscal deficit within the 44.70 % mark of 13^th Finance Commission (FC). If compared to the Medium Term Financial Plan’s
(MTFP) 44.60 % fiscal indicator, Tripura’s percentage was 32.21 % of Gross State Domestic Product (GSDP).

Revenue, Fiscal Deficit and Primary Deficit. These three fiscal pre-requisites indicate the overall fiscal disequilibrium of a state government’s financial condition, for a definite period. The nature of this deficit acts as an index to reflect the expertise of the government’s on its fiscal management policies. Furthermore, the financing of the deficit and how it will be utlilsed also leave a far reaching effect on the fiscal management initiatives. Poor fiscal management is indicated by a lack of record-keeping and unnecessary or unplanned expenditures that can cause a department to go over budget or fail to meet its planned and committed objectives.

In this regard, the Comptroller and Auditor General Reports (for 2012-13) have slammed the state government for an increased investment in the government undertakings and statutory corporations, over the years, which are not yielding much as per funds invested in those. A mere Rs. 67 lakh the government has earned in the FY 2012-13 from the undertakings.

The CAG report has emphasised a need to ensure better value for money in investments. "Otherwise, high cost borrowed funds will continue to be invested in projects with low financial returns. Projects which are justified on account of low financial but high socio economic returns may be identified and prioritised with full justification for channeling high cost borrowings there. The government must prepare itself better to face future liabilities/commitments by taking steps like proper investment of the amounts relating to contributory pension scheme and specific purpose reserve funds," suggested the CAG reports published from the Indian Audit and Accounts department.