Financial
Rajasthan

Report of 2015 - Financial Audit on State Finances of Government of Rajasthan

Date on which Report Tabled:
Wed 25 Mar, 2015
Date of sending the report to Government
Government Type
State
Sector Finance

Overview

In May 2005, Rajasthan Government responded to the Twelfth Finance Commission recommendations by legislating "The Rajasthan Fiscal Responsibility and Budget Management Act". As per the recommendations of Thirteenth Finance Commission, the State Government amended the Act in March and September 2011. The Government laid the Medium Term Fiscal Policy Statement for 2013-14 in the legislature (March 2013). The Act envisaged progressive elimination of Revenue deficit to zero by 2011-12, reduction in fiscal deficit to not more than the 3 per cent of Gross State Domestic Product and prudent debt management consistent with fiscal sustainability by way of capping total outstanding debt to GSDP to 36.5 per cent by the end of 2014-15.

The Report based on the audited accounts of the Government of Rajasthan for the year ended March 2014, this report provides an analytical review of the finances of the State Government. The financial performance of the State has been assessed based on the Fiscal Responsibility and Budget Management Act, Budget Documents, Economic Review 2013-14, Thirteenth Finance Commission Report and other financial data obtained from various Government departments and organisations. The report is structured in three Chapters. Chapter I is based on the audit of Finance Accounts and makes an assessment of Government of Rajasthan's fiscal position as on 31 March 2014. It provides an insight into trends in committed expenditure, borrowing pattern, besides giving a brief account of Central funds transferred directly to the State Implementing Agencies through off budget route. Chapter II is based on Appropriation Accounts and gives grant-by-grant description of appropriations and the manner in which the allocated resources were managed by the service delivery departments. Chapter III is an inventory of Government of Rajasthan's compliance with various reporting requirements and financial rules.

The report also has an Appendix 1.1 of additional data collected from several sources in support of the findings. Appendix 4.1 at the end gives a glossary of selected terms related to the State economy, as used in this report. At the end of 2013-14, the fiscal deficit was 2.96 per cent of Gross State Domestic Product (GSDP), which was marginally within the limit of 3 per cent prescribed under the Fiscal Responsibility and Budget Management Act, 2005 (as amended in 2011). The State's total outstanding debt as percentage of GSDP was 25.3 per cent in 2013-14 which was also within the target of 37.3 per cent fixed by the Thirteenth Finance Commission. Further, the shares of development expenditure and capital expenditure as a percentage of total expenditure increased from 66.4 to 73.4 per cent and from 10.4 to 15.2 per cent respectively during 2010-14.

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