Himachal Pradesh's revenue subsidies consume 86% of income, CAG finds

This audit examines the financial performance, budgetary management, and financial reporting practices of the Government of Himachal Pradesh for the financial year 2024-25.

Government of Himachal Pradesh

• Gross State Domestic Product (GSDP) growth was 9.20 per cent, but the State's contribution to India's GDP declined to 0.70 per cent over the last five years.
• Revenue receipts grew by 4.34 per cent, while non-tax revenue growth was 22.40 per cent.
• Committed costs and subsidies accounted for 86 per cent of Revenue Receipts, with committed costs alone constituting 70 per cent of Revenue Expenditure.
• Capital expenditure remained volatile and below budgeted levels, indicating constraints in infrastructure investment.
• Subsidies increased sharply, primarily due to power subsidies.
• The report identifies issues such as expenditure incurred without authority of law, excess expenditure, and non-adherence to Quarterly Expenditure Limits.
• Undischarged liabilities include non-remittance of collected cess, undischarged interest liability, and unauthorised retention of fines collected under COTPA.
• There are delays in the submission of Utilisation Certificates and pendency of refund cases.
• The report notes non-transparent accounting due to the extensive use of SOE-20 (Other Charges) and outstanding balances under major Suspense and DDR Heads.

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