Fiscal deficit jumps 77.29% to ₹8,608.08 crore in Jammu and Kashmir

Who it concerns: Government of Union Territory of Jammu and Kashmir

What the auditor found

• Fiscal deficit increased by 77.29 per cent to ₹8,608.08 crore in 2023-24, up from ₹4,855.37 crore in 2022-23.
• Revenue surplus decreased from ₹5,976.61 crore in 2022-23 to ₹3,486.22 crore in 2023-24.
• 86.37 per cent of current borrowings were utilized for the repayment of principal borrowings rather than for capital creation or development activities.
• Capital expenditure accounted for only 15.36 per cent of total expenditure (₹12,088.85 crore).
• CAG noted a continuous mismatch between receipts and expenditure, indicating rising fiscal stress.
• Expenditure was incurred without the authority of law in certain instances.
• There were cases of unnecessary or insufficient Supplementary Grants and substantial savings/surrenders in various grants.
• CAG identified issues with the quality of accounts, including non-discharge of liability for interest on deposits and delays in submitting Utilisation Certificates.

Also in the document

• CAG reported that the UT Government used 86.37 per cent of its current borrowings to repay existing debt principal, leaving limited funds for new development projects.
• CAG observed that the fiscal deficit rose by 77.29 per cent year-on-year to ₹8,608.08 crore.
• CAG noted that revenue receipts grew by only 1.64 per cent, while total expenditure increased by 6.62 per cent, leading to a decline in revenue surplus.