The outstanding ofBiharwhich mounted to Rs 1.93 lakh crore in 2019-20 has put strains on the states finances as it has led to debt repayment burden and the shrinkage in Capital Expenditure that is otherwise made to create assets as part of the Infrastructure development, according toComptroller and Auditor General(CAG) report for the 2019-20 fiscal tabled in the state assembly.
According to the report, the outstanding public debt of the state had increased from Rs 1.16 lakh crore in 2015-16 to Rs 1.38 lakh crore in the next fiscal, followed by Rs 1.56 lakh crore in 2017-18, Rs 1.68 lakh crore in 2018-19 and Rs 1.93 lakh crore in 2019-20. The Growth rate of the outstanding public debt was in the range of 17.69% in 2015-16, 18.99% in 2016-17, 13.02% in 2017-18, 7.75% in 2018-19 and 14.48% in 2019-20, the report added.
The growth rate of the states gross state domestic product (GSDP) in the corresponding financial years was 8.35%, 13.31%, 11.33%, 13.15% and 15.36%. The growth rate of public debt is higher than the growth rate of GSDP during the year, which is not a good fiscal indicator, the report noted.
In what could increase the anxiety of the stakeholders, the volume of capital expenditure also showed decreasing trend during 2018-19 and 2019-20. The capital expenditure was Rs 23,966 crore in 2015-16, Rs 27,208 crore in 2016-17 and Rs 28,907 crore in 2017-18, and then began to show falling trend in the subsequent two fiscals Rs 21,058 crore in 2018-19 and Rs 12,304 crore in 2019-20. Implicitly, the state had been spending less on the creation of assets.
The CAG report also noted that the states debt has become unsustainable in the backdrop of the Revenue Deficit for the first time since 2008-09 and this has been compensated from public debt.
In between, the debt repayments went on increasing Rs 38,508 crore in 2015-16, Rs 50,701.29 crore in 2016-17, Rs 41,357.18 crore in 2017-18, Rs 61,666.46 crore in 2018-19 and Rs 69,732.59 crore in 2019-20. The amount spent on interest repayment has also shown a similar trend.