KCR Govt. And CAG Report
Kommineni Srinivasa Rao
A few days after Telangana Chief Minister K Chandrashekhar Rao spoke about the economy of the state in glowing terms, the CAG report expressed concern on some aspects of the state’s economic functioning. KCR lashed out at critics who said that Telangana was being pushed into a debt trap. He said that over these three years the debt amounted to only Rs.70,000 crores and that the state of Telangana was a prosperous one. KCR pointed out that the state had a flourishing economy with healthy revenue receipts.
However, the CAG report seems to paint a different picture altogether. It says that 34.74% of the loans was being used to repay existing debts. It is estimated that by the year 2022 the debt would go up to 22,280 crore rupees. This would mark a very dangerous point. CAG has cautioned the government against going in for further loans.
As regards revenue reserves, CAG has relegated that part to the past. It clarified that the state of Telangana had a revenue deficit of 5392 crore rupees. It further said that a loan of Rs.1500 crores for metro water works was being shown as government income. Similarly, Rs.1000 crore borrowed from HUDCO was also being shown as income, it said.
Are loans ever shown as income? If such amounts are invested, the investment is treated as an asset if that is the case. However, instead of doing so loans are being shown as income and in doing so, the state seems to have created history of sorts.
It appears as if budgetary allocations have no relation to expenditure. Approximately, an expenditure of Rs.21,161 crore is shown which is unrelated to the budget. This itself is a reflection of the importance attached to budget and budgetary allocations by the state. In the past, CAG reports would pinpoint flaws under specific heads of accounts. As it turns out, these days CAG reports have to deal with the budget of an entire state or the economic excesses, rather, of a state. It is a matter of discomfort for the state government to learn that not even 40% of the funds assigned for SC/ST sub-plan have been spent, as per the CAG. A question that arises is—what are IAS officials in the state doing? Are they merely carrying out the orders of their political masters? Are they so helpless as to be unable to state the truth to their political bosses? Evidently, there are certain reasons for such circumstances.
Often, the chief minister behaves in a manner which runs contrary to the idea that he is a democratically elected representative. Perhaps, that is the reason why he has created a record of sorts by not going to the Secretariat at all. There is no doubt that certain decisions of KCR have been very positive ones. Else, He would not have been as popular with the masses as he is. But that certainly does not mean that he is no way connected with the Constitution or that he can spend public money as it pleases him.
Such an approach is bound to boomerang at some point. The TRS government may think that the CAG report can be cast off or brushed aside. The truth however, is that the CAG report has already caused enough damage. There may be a couple of positive points in this report. On the whole it appears to criticise the TRS government for its fiscal discipline and for the debt which the state finds itself in. One hopes that the government would take note of the CAG report and take necessary corrective measures. Otherwise, it would not augur well for future generations.