Punjab debt Rs 2.6L crore, likely to cross Rs 5L cr in 10 years: CAG

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The way the states finances are being managed, Punjabs is likely to cross Rs 5 lakh crore in 10 years. This fact came to the fore in a report on State Finances for 2021-22 prepared by the Comptroller and Auditor General and tabled in the Assembly.

The state used the borrowed funds for meeting the current consumption and repayment of interest on outstanding loans but it is not a healthy trend. During 2017-22, the government

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utilised between 59% and 73% of its current borrowings for repayment of earlier borrowings. State incurred 64% of the total Revenue Expenditure on committed liabilities, leaving only 36% for the priority sector

Subsidies constituted 11 per cent to 18 per cent of the revenue expenditure during 2017-22

Power subsidy constituted a major portion of the total subsidies ranging between 68 per cent and 99 per cent

During 2021-22, the government spent ? 8,010 crore (25 per cent of the borrowed funds) on Capital Expenditure which showed a notable improvement in utilisation of borrowed funds towards creation of concrete assets