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A recent CAG report has drawn attention to Himachal Pradesh's continued dependence on central transfers, noting that only a third of the state's revenue came from its own sources during 2021-22. The findings, tabled in the Assembly by Chief Minister Sukhvinder Singh Sukhu, show limited growth in internal revenue and a modest rise of INR 500 crore in non-tax income. At the same time, expenditure on salaries, pensions, interest and subsidies continued to rise. The report also highlighted irregular spending of INR 22.61 crore from the Disaster Relief Fund despite earlier objections.
The Comptroller and Auditor General's report for 2021-22, presented in the Himachal Pradesh Assembly by Chief Minister Sukhvinder Singh Sukhu late last week, highlighted that the state's fiscal recovery remains challenging due to weak internal resource mobilisation. The report noted that total revenue receipts stood at INR 12,326.98 crore, with only 33 per cent generated from the state's own sources and the remaining 67 per cent coming through the share in central taxes and grants from the Union government. Advertisement
The audit findings pointed out that the state's own revenue showed no major improvement during the year under review. Non-tax revenue rose by only INR 500 crore, which the report assessed as insufficient to keep pace with rising expenditure. Payments related to salaries, pensions, interest obligations and subsidies continued to increase, adding further strain on the state's finances. The CAG stated that stronger and consistent efforts are required to enhance the state's revenue base.
The report also flagged irregularities in the use of the State Disaster Relief Fund. Despite earlier objections raised by the public accounts committee, the state spent INR 22.61 crore in a manner that did not comply with prescribed guidelines. The CAG's findings add to earlier concerns raised in past audit cycles, where the need for stricter financial controls and better monitoring of relief-related spending was repeatedly emphasised.
Source PTI
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