By Bizodisha Bureau, Bhubaneswar, May 2, 2016 : Odisha government’s public debt is up by 237% between 2010-11 and 2014-15 from Rs 2,268 crore to Rs 7,646 crore, according to a report on state finances by the Comptroller & Auditor General of India (CAG) for the year ended March 2015.

In 2014-15 alone, public debt rose by a whopping 79% at Rs 1,818 crore.

Expressing serious concern at the rising public debt, the CAG said it creates future repayment obligations.

Public debt receipts during 2014-15 comprised internal debt of Rs 7,117 crore and Rs 529 crore as loans and advances from the Government of India. Debt receipts had a predominant share in capital receipts and were between 90% and 99% during 2010-15 whereas non-debt receipts had a smaller share in capital receipts and ranged between one to 10% per cent during the period.

The state government, in its reply to the auditor in November 2015, said that public debt receipts increased due to its effort to finance capital outlay.

Capital expenditure of the state as proportion of total expenditure increased from 13% (Rs 4,285 crore) in 2010-11, to 18% (Rs 11,075 crore) in 2014-15. Capital expenditure rose 43% in 2014-15 mainly on account of increase in expenditure on roads and bridges, irrigation and flood control, medical and public health and education, sports, arts and culture.

Total expenditure of the state rose by 84% between 2010-11 to 2014-15 from Rs 33,968 crore to Rs 62,569 crore due to rise in revenue expenditure, capital outlay and disbursement of loans and advances.

Revenue receipts of the state showed progressive increase from Rs 33,276 crore in 2010-11 to Rs 56,998 crore in 2014-15, registering a growth of 71%.

The CAG report, which was tabled in the state Assembly on Monday further made it clear that the government’s negligence in complying with the guidelines laid by 13th Finance Commission has cost the state a whopping Rs 1049.15 crore.

While 32 departments of the State Government have failed to submit the utilisation certificate of funds to the Center, 33 organisations have failed to do so. In terms of numbers: the 32 departments are yet to submit utilisation certificates for fund worth Rs 8561 crore. For the organisations, the funds go as high as Rs 20,940 crore.

Not submitting the utilisation certificates have their repercussions in terms of dried funding over following fiscals, warned the CAG in its report citing that it violates the guidelines of 13th Finance Commission.