1.1 Since the late 1960s Assam has benefitted from

poverty estimates showing 32% of the population of

liberal Central go...
1.2 Although Assam’s GSDP increased by 12.7% in

relatively small budget deficits.

2011-12, that of other Special Categor...
1.4 Owing mainly to relatively high inflation and

revenue surplus in 2010-11, a trend that continued

rising

employees,
...
2.1

While

40%

of

Assam’s

highways

are

from an over 50% shortage of energy. In fact, the

macadamized & 93% roads re...
2.2. The sex ratio of the State is heavily skewed at

also higher than the national average of 6.50%. In

1000:957 while t...
Tax and non-tax revenues rose 4.5 and 4 folds
respectively but were adversely affected by inflation

GSDP ranged from 4.62...
Although the state registered a fiscal surplus

to emerge between GSDP, debt and other liabilities.

from 2005-06 to 2008-...
4.1 Expenditure on revenue account (18-24% of

social services, where the State’s many beneficiaries

GSDP) has risen appr...
4.3 While there are large budget surrenders every

every year. While, on the one hand, the State was

year, large investme...
4.5 Assam receives substantial grants (90% as grant

such large funds are made available to Assam at the

and 10% as loan,...
4.7 Section 4 (3) (v) of the State’s Fiscal

57%), Urban Development (57-67%) and Roads &

Responsibility and Budget Manag...
4.8 Of the total Plan schematic surrenders of Rs.

colleges and rural family welfare sub-centers, water

16,951.84 crore f...
4.11 Such large surrenders caused an artificial

Although the State’s departments report large

revenue surplus of Rs. 926...
15
 Borders 7 states and 2 countries
 Area of 78,438 sq. km
 Has 48 major and 128 minor rivers
 Population of 31.17 milli...
Source: Economic Survey of Assam, 2011-12
 Services sector growth in 2011-12 est. at highest among all
sectors at 9.74%
...
 Growth of population during 1971-2011 is 113.12 % against the national growth rate of 120.77%
 14th in size of populati...
Source: Economic Survey of Assam 2011-12

 Literacy rate 79% for males & 67% for females
 70.44% rural and 88.88% urban ...
Source: Economic Survey of Assam 2011-12

 Net per capita income growth of 11.50% against national average of 6.50%
 Ave...
http://planningcommission.nic.in/plans/mta/11th_mta/chapterwise/Comp_mta11th.pdf p. 34
10

Figures In Per cent

9
8

7

Pe...
http://planningcommission.nic.in/plans/mta/11th_mta/chapterwise/Comp_mta11th.pdf p. 36
5

Figures In Per cent

4

Per Cent...
http://planningcommission.nic.in/plans/mta/11th_mta/chapterwise/Comp_mta11th.pdf p. 37

14

Figures In Per cent

12

Per C...
10

Figures In Per cent

9

8

Per Cent

7
6
5
4
3
2
1
0

1985-90

1992-97

1997-2002

2002-07

2007-12

Assam

4.5

4.4

...
Human Services
• Medical & Public
Health
• Education
• Water Supply &
Sanitation
• I-T enabled
services for
remote areas

...
http://www.tradingeconomics.com/india/inflation-cpi

26
30

http://unidow.com/india%20home%20eng/statewise_gdp.html

2
1.8

25

1.6
1.4

20

1.2
15

1

0.8
10

0.6
0.4

5

0.2
0
...
Percent

80
60
40
20
0

GCS Tax:
GSDP

GSDP
GCS

SCS Tax:
GSDP

GSDP
SCS

GCS Tax: GSDP

GSDP GCS

SCS Tax: GSDP

GSDP SCS...
Percent

45
40
35
30
25
20
15
10
5
0

VIII FC

IX FC

X FC

XI FC

XII FC

Transfers as %age of Gross Central
Revenues

37...
http://sfcassam.nic.in/13thFC/13thFCMemorandum.pdf p. 6

Year

Revenue Receipts
of Centre
(Rs. In Crore)

Quantum of FCT
(...
http://sfcassam.nic.in/13thFC/13thFCMemorandum.pdf p. 11

Although GOI grants have risen by about 50% in the last decennia...
18

16000

16

14000

14

12000

12

10000

10

8000

8

6000

6

4000

4

2000

Rs. In Crore

18000

2

0

2011-12

2010-...
2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Percentage of Total Receipts

10...
35

30

25

20

15

10

5

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Reven...
State’s share of
Central taxes
47%

State's Own Taxes
53%

Decennial Average

Percentage of State’s own revenue to GSDP ra...
15%

1%

34%

Decennial Average

38%

Income & Expd.
Property & Capital
Commodities & Services

10%

Interest/Dividend/Pro...
Corporation

21%

Other than
Corporation
Wealth

11%
43%

Customs
Union Excise
Duties
Service Tax

0%
9%

Art 275(1)
Other...
5000

4000

3000

2000

1000

0

-1000

-2000
Borrowings
Interest Payment

2011-12

2010-11 2009-10 2008-09 2007-08 2006-0...
20000

140000

Progressive Balances

18000

120000

16000
100000

14000
12000

80000

10000
60000

8000
6000

40000

4000
...
http://fincomindia.nic.in/ShowContentOne.aspx?id=28&Section=1 p. 384
100%

100%

Per Cent

100%

99%

99%

99%

99%

99%
A...
45

As percentage of GSDP

40
35

30
25
20
15
10
5
0

2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003...
Effective %age return for FY
1.21

1.17

0.94

1.04
0.93

0.78

0.69
0.70

0.48

The return on investments in PSUs is negl...
No. of days
2011-12
No. of days without advance

2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03

...
35000

30000

NPE on Capital Account
PE on Revenue Account

25000

PE on Capital Account
GSDP (Revenue)

NPE on Revenue Ac...
87%

11%

ES

SS

2%

GS

45
2500

2043.96
2000

1500

1000

500

327.2

128.14
0

11.81

4.39

6.84

46
7000

6453.09

6210.86
6000

5000

4000

3126.97

3271.94

3000
2000

1000

634.71
221.79

0

0.19

0.01

114.14

47
As per cent of Total Revenue Expenditure
120

Percentage

100
80
60
40
20
0

2011-12

2010-11

2009-10

2008-09

2007-08

...
6000

4000

2000

0

-2000

-4000

2012-13

2011-12

Revenue 5302.23

926.85

Fiscal

3592.23 -1646.0

2010-11 2009-10 200...
60000

Rs. In Crore

50000
40000
30000
20000
10000
0

2009-10

2010-11

2011-12

Net Savings

3006.75

2640.44

2797.08

C...
Fiscal Year

2009-10

2010-11
R u p e e s

Department

i n

2011-12

C r o r e

Rev

Cap

%

Rev

Cap

%

Rev

Cap

%

Roa...
2009-10 to 2011-12
 23-37% of State’s gross budget allocation surrendered annually
 Social Service (68-90%)
 Water Reso...
 Externally funded schemes like those of the North Eastern Council (NEC) savings of
Rs. 1426.72 crore from 2009-10 to 201...
2009-10 to 2011-12
 Total Plan schematic surrenders of Rs. 16951.84 crore
 Rs. 9163.28 crore on account of major schemes...
2009-10 to 2011-12
 Large surrenders of revenue allocations that sub serve Plan schematic expenditure such as:
 Rs. 1117...
16000
14000

12000
10000
8000
6000
4000
2000

0

Market Loans

Interest Paid

Unspent Balance/Surrender

 Decadal unspent...
10000
9000
8000

Rs. In Crore

7000
6000
5000
4000
3000
2000
1000
0

2007-08

2008-09

2009-10

2010-11

2011-12

GOI Trea...
 Artificial revenue surplus of Rs. 926.85 crore that
 Artificially lowered the fiscal deficit to Rs. 1,646.05 crore, in ...
Grant

Grant
Apprn.

Grant
savings

Unspent

29- Medical & Public health – 2215 & 2217

1147.44

744.17

65% overall unspe...
90-100% =

51-89% =

0-50%

=
60
Dept

Unspent Balance
(Rs. In Crore)

Dept

Unspent balance
(Rs. In Crore)

Health

221.25

Irrigation

440.20

Town & Cou...
To state the facts frankly is not to despair the future nor
indict the past. The prudent heir takes careful inventory of
h...
 The oldest known accounting records date back to 3500 B. C. and relate to commerce in the Mesopotamian
Valley. The dutie...
The dogmas of the quiet past are inadequate to the
stormy present. The occasion is piled high with
difficulty, and we must...
Financial Management in Assam
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  1. 1. 1.1 Since the late 1960s Assam has benefitted from poverty estimates showing 32% of the population of liberal Central govt. funding for its Plan and non-Plan Assam below the poverty line. The State’s GSDP has needs by the Planning Commission’s Gadgil formula as risen from 3.7% in the VII Plan from 1985-90 to 6.5% in amended from time to time. This formula was made for 2007-12 in the XI Plan against the national median of three Special Category States (SCS), viz. Assam, J&K 5-7-9.1% in the same period. The State’s tax revenues and Punjab - in the late-1960s primarily to develop too have grown on a year-to-year basis by about 9-11% them for they had borders each with a neighboring while the major sources of revenue remain those from nation. This formula, with several permutations and commodities (mainly tea & petroleum) and a buoyant combinations, continues to date, with Assam receiving services sector (that grew from an annual 4.5% to 8% 90% of Central assistance as non-interest bearing against the national median of 7.7-9% in the same Plan grants-in-aid and 10% as loan. Although the quality of periods) and rising share of income tax from the Govt. life of Assamese has improved substantially in the post- of India. Yet the overall contribution of SCS to GDP, 2003-04 years, yet this State remains one of the poorest including that of Assam, remains at a minuscule of in India with the Planning Commission’s 2011-12 0.78% to 1.78% in 2011-12. 2
  2. 2. 1.2 Although Assam’s GSDP increased by 12.7% in relatively small budget deficits. 2011-12, that of other Special Category States, like 1.3 Net borrowings are on a declining trend although Uttarakhand and Sikkim, fared much better with old interest liability runs relatively high, but not 24.7% and 19.24% respectively. Such tiny share of worrisome by the standards of many other larger GDP could not have owed singly to the marginal States. In fact, Assam’s debt stock at 21.3% of GSDP decline of 1.88% in absolute terms from the IVth to among SCS is perhaps the lowest when compared to XIIth FC by way of Central assistance to Assam since Sikkim’s 68.9% and Uttarakhand’s 87.5%. Naturally, GOI grants have also risen by about 50% in absolute this reflects positively on Assam’s declining debts & terms in the last decennial. Yet direct transfers for liabilities from 37.65% to 27.29% of GSDP in the last flagship Central schemes may be a major factor for decennial. A vastly improved cash balance has enabled such decline but improved the quality of life of the State to steer clear of any advances and/or Assamese people. Notwithstanding a rise in absolute overdrafts from the Reserve Bank of India since 2005- terms in taxation and Central assistance, Assam’s 06. The position would have been certainly better were gross revenue has constituted about 18-23% of GSDP it not for a minuscule 1.04% return on the State’s PSU per annum in the last decennial while gross investment in 2011-12. expenditure has ranged between 21-25% thus leaving 3
  3. 3. 1.4 Owing mainly to relatively high inflation and revenue surplus in 2010-11, a trend that continued rising employees, in 2011-12. Such surpluses mainly owe to the expenditure on revenue account has risen by an Financial Responsibility & Budget Management annual average of 18-24% while that on capital by (FRBM) Act, 2005 that, inter alia, prescribed only 2-3% in the last decennial. Obviously, the maxima of 3% of GSDP as revenue deficit. accretion of benefit-yielding capital expenditure However, the above statistics do not necessarily has been thwarted by rising operating costs of imply that fiscal and administrative governance government. After several years of revenue synergize each other as the succeeding paragraphs deficits, in 2009-10, Assam returned a small ----would bear out. wages of government 4
  4. 4. 2.1 While 40% of Assam’s highways are from an over 50% shortage of energy. In fact, the macadamized & 93% roads remain single-laned, and overall registration of educated job seekers as per 71% fields have markets more than 5km from the record of Employment Exchanges increased by nearest field. Moreover, the average operational land 17.25% in 2010. The PDS Outlet: Population Ratio is holding size is only 1.15 ha that may account for the adverse at 1:898 and the State has 14 lakh State having a low of unemployed registered in employment exchanges commercial banks of only 35.6% against 75.1% with about 75% of all job-seekers being educated. nationally. The State is yet to reach self-sufficiency Assam also ranks 26th among all States in literacy in productivity as well as minimum nutrition. rates with 79% for males & 67% for females, 70.44% Industry is mainly small scale, and the State suffers rural and 88.88% urban literacy. deposit: credit ratio 5
  5. 5. 2.2. The sex ratio of the State is heavily skewed at also higher than the national average of 6.50%. In 1000:957 while the State has India’s highest sum, while incomes have grown and quality of life maternal mortality ratio of 390. The labor force is improved in the State, the State still lacks in basic equally skewed with 53% marginal female workers infrastructure and development of basic quality of against 15% male. Birth rate of 23.6 per mille life parameters such as energy, roads & bridges, against the national median of national 22.5 per hospitals and primary health care, communications mille and infant mortality of 58 per mille are higher and roads and bridges, etc. Assam also suffers 16% than the national average of 47 per mille. The State power shortage aggravated by 26% T&D losses. also has a relatively high birth rate of 23.2 and death Notwithstanding rate of 8.2 per mille. Yet Assam’s below the poverty assistance over the last several decades, often to the population at 19.70% (Lakdawala) or 34.40% exclusion of equally and more needy states, Assam (Tendulkar) is relatively lower when compared to remains on the fringe of assuring a minimally national averages of 27.5% and 37.20% respectively. acceptable quality of life for its inhabitants. large infusions of Central Assam’s net per capita income growth of 11.50% is 6
  6. 6. Tax and non-tax revenues rose 4.5 and 4 folds respectively but were adversely affected by inflation GSDP ranged from 4.62% to 6.62% from 2007-08 to 2011-12. ranging from 2-17% per annum during this decennial, However, the State’s record in collecting taxes on particularly from 2009-10. While tax revenue rose commodities and services with a tax efficiency ratio partly in tandem with GSDP, non-tax revenue fell ranging from 0.82%-1.33% in the same period is substantially short of GSDP growth rate primarily praiseworthy. In the same period percentage of State’s owing to PSU/AB losses. The State also remained share of Union taxes declined from 59.42% to 54.86%. below the national average GDP growth rate except in While taxes on income & expenditure have risen, 2009-10 with the services sector expanding by 8.76% grants-in-aid & contributions have declined compared in 2010-11. The rise in taxes on income and with revenue receipts. However, in absolute value, expenditure owes mainly to a corresponding nine-fold grants-in-aid increased from Rs. 2351.50 crore in rise in the share of net proceeds of Union taxes and 2002-03 to Rs. 7666.87 crore in 2011-12, i.e. over a duties assigned to the State from 2002-03 to 2011-12. three-fold rise in the decennial, showing continuing Supported by increasing Central grants-in-aid, the dependence on central grants. Receipts from Govt. of State’s revenue and expenditure as percentage of India increased over 2010-11 by Rs. 2248.64 crore to GSDP have broadly kept pace with each other, except Rs. in 2009-10 owing to arrear payments and salary appropriation of Rs. 39,482.69 crore, i.e. 43% in increases recommended by 2011-12. the 6th State Pay 16950.40 crore against gross budget Commission. Percentage of State’s own revenue to 7
  7. 7. Although the state registered a fiscal surplus to emerge between GSDP, debt and other liabilities. from 2005-06 to 2008-09, 6th Pay Commission With relatively liberal funding from the GOI, payments forced it back into a deficit in 2009-10. Assam’s debt stock at 21.30% of GSDP is the lowest While interest payments remained largely static among all SCS and barely a fourth of Uttarakhand. until 2008-09, these rose substantially from 2009- In fact, the State’s debts and liabilities have declined 10 owing to more payments under internal debt, by about a third to 27.29% in 2011-12 from 2002- Small Savings and PF, etc. While total internal debt 03. Regrettably, the return on the State’s investment and other liabilities show a rising trend, L&A from on its public sector enterprises has contributed only GOI shows a declining trend, all without adjusting 0.5-1% per annum in the last decennial, making for inflation. Declining L&A from Ministries, other these a major drain on the State’s economy. With its than Finance, write-off of loans by 12thFinance improved liquidity the State has also not taken any Commission plus Assam’s special category eligibility ways and means advances since 2004-05. for 90% grants and 10% loan, has caused a balance 8
  8. 8. 4.1 Expenditure on revenue account (18-24% of social services, where the State’s many beneficiaries GSDP) has risen appreciably faster than on capital lie, accounted for only 11%. Even within social account (2-3% of GSDP) that has stagnated with few services, new capital assets being added without adjusting for accounted for relatively small percentages. Although inflation. Declining borrowings by 90% SCS grants, the State shows erratic fiscal health up to 2009-10, write-off of loans by 13th Finance Commission and large budget surrenders/undrawn balances every extra budgetary transfers for flagship schemes and year by key infrastructure and social welfare reducing pensions with introduction of New Pension departments shows that the state is unable to apply Scheme, have helped raise expenditure on social such funds even when human development indices services without adjusting for inflation. Although are among the lowest in India. This also points to pensions have remained largely static as a percentage ineffective schematic monitoring and evaluation both of total revenue expenditure, in absolute terms they by the State and GOI. health, education and social welfare have risen by approx. 300% in the last decennial, without adjusting for inflation. 4.2 However, surprisingly, economic services accounted for 87% of total capital expenditure while 9
  9. 9. 4.3 While there are large budget surrenders every every year. While, on the one hand, the State was year, large investments are made in short-term unable to utilize approx. Rs. 86,000 crore of its investments in Govt. of India Treasury Bills owing budget allotments in the past decade, it drew to unutilized cash balances of the State with RBI. If several thousand crore of Rupees in March. Since current bank account balances are factored, the such moneys were not lawfully available after State is not short of funds even if Central Plan March 31 every year, its utilization remains grants were temporarily reduced. In fact, the 2011- unknown. 12 Annual Plan’s outlay almost equals gross budget surrenders/undrawn balances in the same year. The State’s receipts, its own and from GOI, are received regularly through the year but about a quarter to a third of the state’s budget is expended in March alone. As a logical corollary, the State’s accounts invariably show a large revenue surplus till March 10
  10. 10. 4.5 Assam receives substantial grants (90% as grant such large funds are made available to Assam at the and 10% as loan, being a Special Category State) from expense of needier States. the GOI. However, the State’s Appropriation Accounts 4.6 for 2011-12 show that Assam had an unspent balance allocations are decided by the Planning Commission, of Rs. 10,128.67 crore against total appropriation of partly on the basis of the achievements of the state Rs. 39,482.69 crore, i.e. 25.65%. Such large unspent govt. in the preceding year. When the figures of balances caused a revenue surplus of Rs. 926.85 crore expenditure depicted in the Appropriation Accounts and artificially lowered the fiscal deficit to Rs. show such large unspent balances and heavy drawings 1,646.05 crore, i.e. 1.43% of GSDP (of Rs. 1,15,409.64 in March alone, these subvert Govt. of India’s Plan crore), less than half the maxima set by the FRBM Act budget that finds itself short of resources for more ibid. If transfers to DDOs’ current bank accounts (ref. deserving states and artificially inflates both revenue para 12 infra) are not included as expenditure in the and fiscal deficits of the Centre. Future years’ schemes and their budget Appropriation Accounts, Assam’s fiscal deficit to GSDP ratio would decline further and substantially, although this may detract from avowed State policy to improve the quality of life for its citizens for which 11
  11. 11. 4.7 Section 4 (3) (v) of the State’s Fiscal 57%), Urban Development (57-67%) and Roads & Responsibility and Budget Management (FRBM) Bridges (35-38%), Power (55-57%) etc. Within such Act states that the fiscal deficit is required to be large restricted to no more than 3% of the estimated surrenders, e.g. Water Resources (Rs. 1891.45 Gross State Domestic Product within a period of five crore), Roads & Bridges (Rs. 1292.02 crore) and financial years beginning on the 1st April, 2005, and Power (Rs. 916.88 crore) from 2009-10 to 2011-12. ending on 31st March, 2010. However, the State’s Cumulative surrenders over 2009-10 and 2010-11 in Appropriation Accounts for 2011-12 show that 14 major budget heads alone were Rs. 11716.40 Assam showed unspent balance of Rs. 10128.67 crore. In fact, in 2011-12, except for 2-3 budget crore against a total appropriation of Rs. 39,482.69 heads where there was excess spending, in all other crore, i.e. 25.65%. From 2009-10 to 2011-12, the budget heads there were savings and/or unspent State surrendered/did not draw 23-37% of its gross balances - a most unusual trend in an era of major budget allocation approved by the State Assembly. budgetary cutbacks country and world wide. Such Key infrastructure and social welfare departments savings also carry with it the distinct possibility of have showed abnormally high surrenders in areas needier States being underfunded while the revenue such as Social Service (68-90%), Water Resources deficit of the Centre artificially mounts. overall savings are large capital fund (57-68%), Social Security, Welfare & Nutrition (27- 12
  12. 12. 4.8 Of the total Plan schematic surrenders of Rs. colleges and rural family welfare sub-centers, water 16,951.84 crore from 2009-10 to 2011-12, Rs. supply, child services, mid-day meals for school 9163.28 crore were on account of major schemes children, flow irrigation, grants for backward with 75% savings in about a dozen, 50-74% in 18 regions and hill areas, both State and Central, Plan and 20-49% in another 19, affecting diverse budget and non-Plan. heads such as, but not limited to, Water Resources, 4.10 In addition, there were large surrenders of Hill Urban revenue allocations, many of which sub serve Plan Development, Water Supply & Sanitation, Roads & schematic expenditure such as Rs. 1,117.36 crore in Buildings, Rural Development, Medical & Public Medical & Public Health, Rs.1,730.05 crore in Social Health and others. Security, Welfare & Nutrition, Rs. 574.16 crore in 4.9 Even externally funded schemes like those of Welfare of SC/ST/OBC and Rs. 1,602.27 crore in the North Eastern Council (NEC) showed savings of Social Service from 2009-10 to 2011-12. These Rs. 1,426.72 crore from 2009-10 to 2011-12. Some include unfilled posts of doctors, teachers, repairs schemes that showed large savings include flood and maintenance of existent capital projects, etc. Areas, Social Security/Services, control of Brahmaputra and Barak rivers, medical 13
  13. 13. 4.11 Such large surrenders caused an artificial Although the State’s departments report large revenue surplus of Rs. 926.85 crore and artificially surrenders and/or unspent balances every year lowered the fiscal deficit to Rs. 1,646.05 crore, in that invariably leads to an accretion in the cash 2011-12, i.e. 1.43% of GSDP (of Rs. 1,15,409.64 balance of the State held by the Reserve Bank of crore), less than half the maxima set by the FRBM India, the State invested Rs. 5146-8858 crore per Act ibid. However, if 80% of capital allocations annum in short-term Govt. of India Treasury Bills were expended, there ought to have been a fiscal and earned interest thereon, ranging from Rs. 231- deficit of Rs. 8822 crore in 2011. This, in turn, 481 crore per annum from 2007-08 to 2011-12. In would have raised the fiscal deficit to 7.64% of fine, the FRBM Act has not only failed to achieve GSDP. Likewise, if 80% of revenue budget its desired objective but, paradoxically, has allocations were expended, there ought to have become an instrumentality for subversion of been a revenue deficit of Rs. 4829 crore in 2011-12. prudent financial practices and accountability. 14
  14. 14. 15
  15. 15.  Borders 7 states and 2 countries  Area of 78,438 sq. km  Has 48 major and 128 minor rivers  Population of 31.17 million in 2011  27 districts + 4 under Bodoland TC  2.4% of India’s area home to 2.57% of its population  Decadal population growth of 16.93% against national average of 17.64%  GSDP growth in 2011-12 est. at 8.42%  NSDP growth in 2011-12 est. at 8.42%  Primarily agricultural economy with paddy covering 91% of cultivated land and employing 52% of work force  Manufacturing only 7% of GSDP Source: Economic Survey of Assam, 2011-12 16
  16. 16. Source: Economic Survey of Assam, 2011-12  Services sector growth in 2011-12 est. at highest among all sectors at 9.74%  Est. 10.73% growth in tax income of State  Per capita indebtedness of Rs. 8677 in 2010-11  20000 population covered by a bank branch against national average of 14000  Rice production up by 14% in 2010-11  7% of land area eroded by major rivers since 1954  Yet to reach self-sufficiency in productivity as well as minimum nutrition  Tea industry of 332000 ha. major source of economic and  >10 million heads of livestock social sustenance  Industry mainly small scale  Except natural gas, Coal, Petroleum(Crude) and Limestone  No improvement in power availability production declined  PDS Outlet : Population Ration = 1:898  Tele-density of 35.18% below national average of 66.17%  14 lakh registered unemployed in employment exchanges 17
  17. 17.  Growth of population during 1971-2011 is 113.12 % against the national growth rate of 120.77%  14th in size of population in India  15th in density  15th in sex-ratio 0.19 0.09  26th in literacy 0.09 0.04 0.08 3.7 30.92 64.89 Hindu Muslim Christian Sikh Buddhist Jains Other Not Stated Source: Economic Survey of Assam 2011-12 18
  18. 18. Source: Economic Survey of Assam 2011-12  Literacy rate 79% for males & 67% for females  70.44% rural and 88.88% urban literacy  Child sex ratio M: F = 1000:957  53% marginal female workers against 15% male  Birth rate of 23.6 per mille against national 22.5 per mille  Infant mortality 58 per mille against national average of 47 per mille  Birth rate 23.2 and death rate 8.2 per mille  BPL population 19.70% (Lakdawala) or 34.40% (Tendulkar) against national averages of 27.5% and 37.20% respectively  GSDP growth rate of 7.34% against national average of 8.5% 19
  19. 19. Source: Economic Survey of Assam 2011-12  Net per capita income growth of 11.50% against national average of 6.50%  Average operational land holding size is only 1.15 ha  71% fields have markets more than 5 km from nearest field  16% power shortage aggravated by 26% T&D losses  40% macadamized highways & roads of which 93% single-laned  Deposit : Credit ratio of commercial banks 35.6% against 75.1% nationally  Percentage of educated job seekers about 75% of all job-seekers  Overall registration of educated job seekers as per record of Employment Exchanges increased by 17.25% in 2010  Highest maternal mortality ratio of 390 20
  20. 20. http://planningcommission.nic.in/plans/mta/11th_mta/chapterwise/Comp_mta11th.pdf p. 34 10 Figures In Per cent 9 8 7 Per Cent 6 5 4 3 2 1 0 1985-90 1992-97 1997-2002 2002-07 2007-12 Assam 3.7 2.8 1.8 5.3 6.5 Median for all States 5.7 5.8 4.9 8.4 9.1 Assam’s growth rate of GSDP is substantially below the national median 21
  21. 21. http://planningcommission.nic.in/plans/mta/11th_mta/chapterwise/Comp_mta11th.pdf p. 36 5 Figures In Per cent 4 Per Cent 3 2 1 0 -1 -2 1985-90 1992-97 1997-2002 2002-07 2007-12 Assam 1.9 1.4 -0.8 0.6 2 Median 3.1 2.6 1.5 3.4 4 Assam’s growth rate of agriculture is substantially below the national median 22
  22. 22. http://planningcommission.nic.in/plans/mta/11th_mta/chapterwise/Comp_mta11th.pdf p. 37 14 Figures In Per cent 12 Per Cent 10 8 6 4 2 0 1985-90 1992-97 1997-2002 2002-07 2007-12 Assam 3.1 3.2 1.9 7.9 8 Median 8.3 6.8 4.9 10.4 11 Assam’s growth rate of industry is substantially below the national median 23
  23. 23. 10 Figures In Per cent 9 8 Per Cent 7 6 5 4 3 2 1 0 1985-90 1992-97 1997-2002 2002-07 2007-12 Assam 4.5 4.4 3.9 7.3 8 Median 7.7 5.8 6.9 8.5 9 Assam’s growth rate of services is fast catching up with the national median 24
  24. 24. Human Services • Medical & Public Health • Education • Water Supply & Sanitation • I-T enabled services for remote areas Infrastructure • Power • Alternative sources of energy • Roads & Bridges • Irrigation & Waterways • Water Resources • Communication Economic • • • • Agriculture Manufacturing Financial Services Employment 25
  25. 25. http://www.tradingeconomics.com/india/inflation-cpi 26
  26. 26. 30 http://unidow.com/india%20home%20eng/statewise_gdp.html 2 1.8 25 1.6 1.4 20 1.2 15 1 0.8 10 0.6 0.4 5 0.2 0 0 %age GSDP rise over previous year As %age of GDP Although GSDP has risen appreciably on year-to-year basis, the SCS’ GSDP remains a minuscule 0.8 to 1.78% of GDP. 27
  27. 27. Percent 80 60 40 20 0 GCS Tax: GSDP GSDP GCS SCS Tax: GSDP GSDP SCS GCS Tax: GSDP GSDP GCS SCS Tax: GSDP GSDP SCS 2014-15 8.97 13.55 6.31 11.77 2013-14 8.89 13.54 6.24 11.76 2010-11 8.66 12.57 6.02 11.33 2012-13 8.81 13.52 6.16 11.74 2011-12 8.74 13.09 6.09 11.55 2009-10 8.58 10.04 5.94 10.25 While in the case of General Category States (GCS), the gap between GSDP growth and tax rate growth has worsened from approx. 1.5% in 2009-10 to a projected approx. 4.5%, the Special Category states (SCS), including Assam, project a rise from approx. 4.5% in 2009-10 to approx. 5.50% by 2015. Obviously, there is reticence to widen the tax net and/or raise existing rates of state taxes. 28
  28. 28. Percent 45 40 35 30 25 20 15 10 5 0 VIII FC IX FC X FC XI FC XII FC Transfers as %age of Gross Central Revenues 37.86 40.33 35.79 35.27 38.51 Total Revenue Transfers from Centre to States as %age of GDP 10.04 12.57 13.09 13.52 13.54 http://fincomindia.nic.in/ShowContentOne.aspx?id=28&Section=1 pp. 375-376 & http://www.tradingeconomics.com/india/gdp 29
  29. 29. http://sfcassam.nic.in/13thFC/13thFCMemorandum.pdf p. 6 Year Revenue Receipts of Centre (Rs. In Crore) Quantum of FCT (Rs. In Crore) FCT as %age of Central Revenue Receipts Actual devolution %age - - 37.80 - 1999-2000 181482 46222 25.46 - 2004-05 305991 88354 28.87 25.77 2005-06 345754 115345 33.36 27.77 2006-07 434387 136486 31.42 25.41 2007-08 525098 155973 29.70 25.93 1990-91 Although Twelfth FC fixed States’ share of Central taxes at 30.50% of net proceeds, actual devolution has been below this level. 30
  30. 30. http://sfcassam.nic.in/13thFC/13thFCMemorandum.pdf p. 11 Although GOI grants have risen by about 50% in the last decennial in absolute terms, Assam’s share has declined by 1.88% in absolute terms from the IVth to XIIth FC. However, in real terms the decline is substantially more when inflation is factored. Direct transfers for flagship Central schemes may be a major factor for such decline. 31
  31. 31. 18 16000 16 14000 14 12000 12 10000 10 8000 8 6000 6 4000 4 2000 Rs. In Crore 18000 2 0 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 Tax Revenue 16921.77 13898.46 10326.25 9340.11 8277.71 7382.31 6288.99 5297.65 4232.39 3748.87 Non-Tax Revenue 0 692.97 2866.76 2373.33 2752.94 2271.9 2134.59 1859.27 1459.28 1070.03 945.8 GSDP %age grow over previous year 10.74 18.4 13.57 6.61 14.62 34.63 8.23 8.51 9.76 Tax as %age of GSDP 17.14 15.62 14.86 14.98 14.33 14.57 12.22 10.04 8.16 7 Tax and non-tax revenues rose 4.5 and 4 folds respectively but were adversely affected by inflation ranging from 2-17% per annum during this decennial, particularly from 2009-10. While tax revenue rose partly in tandem with GSDP, non-tax revenue fell substantially short of GSDP growth rate primarily owing to PSU/AB losses. The State also remained below the national average GDP growth rate except in 2009-10 with the services sector expanding by 8.76% in 2010-11. 32
  32. 32. 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Percentage of Total Receipts 100% 80% 60% 40% 20% 0% 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 Percentage to GSDP 23.79 24.01 22.59 23.32 21.08 21.55 25.57 22.83 19.36 21.78 Grants/Contributions 27.32 29.27 34.22 35.76 32.06 32.38 35.67 35.92 33.31 34.61 Economic Services 8.24 7.92 9.39 9.18 11.08 11.01 11.08 9.72 10.93 9.51 Social Services 0.09 0.12 0.13 0.12 0.2 0.99 0.32 0.21 0.64 0.19 General Services 0.32 0.39 1.77 0.77 0.92 0.24 0.29 0.64 0.44 0.37 Interest/Dividends/Profits 1.78 1.87 2.56 2.5 1.73 1.36 0.43 0.2 0.17 0.13 Commodities/Services 9.46 37.4 32.41 34.23 34.91 37.63 38.03 38.81 39.69 42.36 Property & Capital Tr. 1.2 1.18 1.16 1.25 1.25 1.27 1.35 1.33 1.61 1.66 20.97 21.83 18.36 16.19 17.85 15.12 12.83 13.17 13.21 11.17 Income & Expdn The rise in taxes on income and expenditure owes mainly to a corresponding nine-fold rise in the share of net proceeds of Union taxes and duties assigned to the State from 2002-03 to 2011-12 33
  33. 33. 35 30 25 20 15 10 5 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Revenue 18.59 19.36 22.83 25.57 21.55 21.08 23.32 22.59 22.07 22.99 Expenditure 21.3 22.93 30.75 24.89 20.12 20.05 21.55 27.22 24.01 0 25.23 Supported by increasing Central grants-in-aid, the State’s revenue and expenditure as %age of GSDP have broadly kept pace with each other, except in 2009-10 owing to arrear payments and salary increases recommended by the 6th State Pay Commission. Low percentages may owe to large unspent balances and expenditure. 34
  34. 34. State’s share of Central taxes 47% State's Own Taxes 53% Decennial Average Percentage of State’s own revenue to GSDP ranged from 4.62% to 6.62% from 2007-08 to 2011-12. However, the State’s record in collecting taxes on commodities and services with a tax efficiency ratio ranging from 0.82%-1.33% in the same period is praiseworthy. In the same period %age of State’s share of Union taxes declined from 59.42% to 54.86%. 35
  35. 35. 15% 1% 34% Decennial Average 38% Income & Expd. Property & Capital Commodities & Services 10% Interest/Dividend/Profit General Services Economic Services 1% 1% While taxes on income & expenditure have risen, grants-in-aid & contributions have declined compared with revenue receipts. However, in absolute value, grants-in-aid increased from Rs. 2351.50 crore in 2002-03 to Rs. 7666.87 crore in 2011-12, i.e. over a three-fold rise in the decennial, showing continuing dependence on central grants. 36
  36. 36. Corporation 21% Other than Corporation Wealth 11% 43% Customs Union Excise Duties Service Tax 0% 9% Art 275(1) Other Grants 4% 6% 6% Receipts from Govt. of India increased over 2010-11 by Rs. 2248.64 crore to Rs. 16950.40 crore against gross budget appropriation of Rs. 39,482.69 crore, i.e. 43% in 2011-12 37
  37. 37. 5000 4000 3000 2000 1000 0 -1000 -2000 Borrowings Interest Payment 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 1646.05 1990.56 4043.42 -1406.7 2074.5 1912.12 1832.58 1593.33 -790.1 -711.38 -355.7 1512.24 1515.67 1510.12 2057.45 1393.98 1197.43 1403.53 1244.74 1446.1 Although the state registered a fiscal surplus from 2005-06 to 2008-09, 6th Pay Commission payments forced it back into a deficit in 2009-10. Although interest payments remained largely static, these rose substantially from 2009-10 owing to more payments under Internal debt, Small Savings and PF, etc. 38
  38. 38. 20000 140000 Progressive Balances 18000 120000 16000 100000 14000 12000 80000 10000 60000 8000 6000 40000 4000 20000 2000 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Internal Debt 4507.97 L&A from GOI 6482.36 6734.45 6904.25 2875.02 2775.31 2708.44 2639.57 2346.38 2238.69 2143.48 Other Liabilities 2768.36 3331.22 4006.96 4070.73 4675.38 5296.29 6403.74 9444.3 0 GSDP (Rs. In Crore) 36547 5023.5 40115 6633.71 11681.8 12402.5 13032.5 15198.1 16674.0 17903.6 17805.1 43529 47113 63428 72700 77506 88023 9550.37 11548.5 104218 115408 While total internal debt and other liabilities show a rising trend, L&A from GOI shows a declining trend, all without adjusting for inflation. Declining L&A from Ministries, other than Finance, writeoff of loans by 12th Finance Commission plus Assam’s special category eligibility for 90% grants and 10% loan, has caused a balance to emerge between GSDP, debt and other liabilities. 39
  39. 39. http://fincomindia.nic.in/ShowContentOne.aspx?id=28&Section=1 p. 384 100% 100% Per Cent 100% 99% 99% 99% 99% 99% As %age of GSDP Rs. In Crore Uttarakhand Tripura Sikkim Nagaland Mizoram Meghalaya Manipur Jharkhand Chhatisgarh Assam 87.5 71.8 68.9 57.7 44.9 43.3 33.5 29 28.1 21.3 35403.16 25935.67 25066.9 18846.13 5228.67 5008.01 4930.45 3897.55 3783.3 2494.51 40
  40. 40. 45 As percentage of GSDP 40 35 30 25 20 15 10 5 0 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 %age of GSDP 27.29 28.49 32.34 31.28 28.94 31.3 39.54 40.3 37.61 37.65 Debt and Liabilities as a percentage of GSDP is declining that is a positive sign of the state’s fiscal health and its ability to sustain itself on limited borrowings. However, this decline owes primarily to the XIIth FC’s 90% grant and 10% loan component of Central assistance 41
  41. 41. Effective %age return for FY 1.21 1.17 0.94 1.04 0.93 0.78 0.69 0.70 0.48 The return on investments in PSUs is negligible owing to their below par performance, although state investment on them has risen approx. four-fold in the last decennial 42
  42. 42. No. of days 2011-12 No. of days without advance 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 365 365 365 365 365 365 365 No. of days with advance 155 11 23 0 0 0 0 0 0 0 81 39 30 No. of days with overdraft 0 0 0 0 0 0 0 129 315 312 The state is living within its means owing, inter alia, to rising Central assistance from 2004-05 and onward in absolute terms PRINCIPAL ACCOUNTANT GENERAL (A&E), ASSAM 43
  43. 43. 35000 30000 NPE on Capital Account PE on Revenue Account 25000 PE on Capital Account GSDP (Revenue) NPE on Revenue Account GSDP (Capital) 20000 15000 10000 5000 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 0 Expenditure on revenue account (18-24% of GSDP) has risen appreciably faster than on capital account (2-3% of GSDP) that has stagnated with few new capital assets being added without adjusting for inflation. 44
  44. 44. 87% 11% ES SS 2% GS 45
  45. 45. 2500 2043.96 2000 1500 1000 500 327.2 128.14 0 11.81 4.39 6.84 46
  46. 46. 7000 6453.09 6210.86 6000 5000 4000 3126.97 3271.94 3000 2000 1000 634.71 221.79 0 0.19 0.01 114.14 47
  47. 47. As per cent of Total Revenue Expenditure 120 Percentage 100 80 60 40 20 0 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2.59 1.04 0.07 0.07 17.71 20.26 22.4 23.3 41.03 38.89 39.08 14.99 10.1 10.52 13.68 13.24 12.8 9.14 11.94 1.39 0.72 1.18 0.93 Grants-in-aid & Contributions 2.47 1.56 Economic Services 17.58 20.34 Social Services 43.22 44.26 40.24 Pensions 12.79 10.68 Administrative Services 13.64 11.74 Debt Servicing 8.32 8.85 Organs of State 0.93 Fiscal Services 1.05 2005-06 2004-05 2003-04 2002-03 0.1 0.13 0.15 0.11 22.18 22.14 18.3 15.39 37.84 41.67 39.78 40.75 10.29 9.61 10.39 10.76 10.92 10.57 12.35 8.98 10.4 12.07 13.47 14.76 15.7 14.15 18.25 18.51 1.25 0.79 0.75 1.08 0.96 1.15 0.82 1.14 1.06 1.18 1.14 1.58 1.21 1.43 Declining borrowings by 90% SCS grant, write-off of loans by 13th FC and extra budgetary transfers for flagship schemes and reducing pensions with introduction of NPS have helped raise expenditure on social services without adjusting for inflation. Although pensions have remained largely static as a percentage of total revenue expenditure, in absolute terms they have risen by approx. 300% in the last decennial, without adjusting for inflation. 48
  48. 48. 6000 4000 2000 0 -2000 -4000 2012-13 2011-12 Revenue 5302.23 926.85 Fiscal 3592.23 -1646.0 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 53.12 -1990.5 -1347.7 3833.71 2580.77 2210.42 1509.08 -4043.4 1406.79 790.1 711.38 355.7 -291.87 -684.69 -2057.4 -6000 -1393.9 Although the State shows erratic fiscal health up to 2009-10, large budget surrenders/undrawn balances every year by key infrastructure and social welfare departments shows that the state is unable to apply such funds even when human development indices are among the lowest in India. This also points to ineffective schematic monitoring and evaluation both by the State and GOI. 49
  49. 49. 60000 Rs. In Crore 50000 40000 30000 20000 10000 0 2009-10 2010-11 2011-12 Net Savings 3006.75 2640.44 2797.08 Capital 6742.89 5635.59 6537.45 Net Savings 9637.77 11313.55 6416.46 Revenue 30870.4 34265.8 32945.24 Central grants have risen in absolute terms by over 50% in the last decade. Utilization certificates are not submitted to PAG/AG (A&E) in time – gross average annual cash savings are 23-37% although some departments have up to 90% in certain years. If unspent balances were drawn in toto, Assam may have had a large budget surplus every year that would have militated against such excessive funding, if these amounts were not expended. Transfers to current bank accounts compounds excess cash flow, overstates physical achievements but understates cash balance and interest. 50
  50. 50. Fiscal Year 2009-10 2010-11 R u p e e s Department i n 2011-12 C r o r e Rev Cap % Rev Cap % Rev Cap % Roads & Bridges 129.59 438.02 35.23 264.16 378.09 38.40 224.66 475.91 36.86 Water Resources 22.48 828.41 68.34 69.15 438.72 73.40 11.47 624.32 57.06 Social Security, Welfare & Nutrition 891.69 0.18 57.36 466.34 1.52 37.65 372.02 0.10 26.63 Power 182.01 125.99 56.73 150.91 166.57 55.29 11.47 624.32 57.06 Welfare of SC/ST/OBC 226.32 9.66 38.98 224.02 0 42.58 123.82 0.24 19.64 Water Supply & Sanitation 20.21 399.22 47.49 83.36 33.19 22.32 18.03 8.82 6.47 Urban Development 174.34 22.03 56.58 193.73 22.83 53.39 165.37 7.57 66.09 Social Service 391.13 0 68.03 704.82 0 90.43 506.32 0 73.51 Medical & Public Health 380.65 0 21.15 543.96 0 28.91 192.75 0 11.66 Miscellaneous General Services 2473.48 0 63.64 95.49 0 58.98 647.57 42.34 27.66 Administration of Justice 54.74 0 39.44 61.76 0 29.87 76.66 0 37.19 Education 156.65 0.10 22.38 108.66 0 10.86 132.14 0.10 12.29 Secretariat & Attached Offices 437.62 -1.64 24.66 1114.14 4.78 63.98 479.31 1.50 28.23 Rural Development 153.40 0 27.88 242.59 0 40.74 50.80 0 9.21 51
  51. 51. 2009-10 to 2011-12  23-37% of State’s gross budget allocation surrendered annually  Social Service (68-90%)  Water Resources (57-68%)  Social Security, Welfare & Nutrition (27-57%)  Urban Development (57-67%)  Roads & Bridges (35-38%)  Power (55-57%) etc. Within such large overall savings are large capital fund surrenders:  Water Resources (Rs. 1891.45 crore)  Roads & Bridges (Rs. 1292.02 crore)  Power (Rs. 916.88 crore)  Rs. 11716.40 crore of cumulative surrenders in 14 major budget heads  In 2011-12, except for few budget heads, in all others were savings 52
  52. 52.  Externally funded schemes like those of the North Eastern Council (NEC) savings of Rs. 1426.72 crore from 2009-10 to 2011-12 with Rs. 861.01 crore in 2011-12 alone:  Flood control of Brahmaputra and Barak rivers Medical colleges and rural family welfare sub-centers Water supply & flow irrigation Child services & Mid-day meals for school children Grants for backward regions and hill areas 53
  53. 53. 2009-10 to 2011-12  Total Plan schematic surrenders of Rs. 16951.84 crore  Rs. 9163.28 crore on account of major schemes  75% savings in about a dozen  50-74% in 18 and  20-49% in another 19  Affecting diverse budget heads such as, but not limited to:  Water Resources, Hill Areas, Social Security/Services, Urban Development, Water Supply & Sanitation, Roads & Buildings, Rural Development, Medical & Public Health 54
  54. 54. 2009-10 to 2011-12  Large surrenders of revenue allocations that sub serve Plan schematic expenditure such as:  Rs. 1117.36 crore in Medical & Public Health  Rs.1730.05 crore in Social Security, Welfare & Nutrition  Rs. 574.16 crore in Welfare of SC/ST/OBC and  Rs. 1602.27 crore in Social Service  Include unfilled posts of doctors, teachers, repairs and maintenance of existent capital projects, etc. 55
  55. 55. 16000 14000 12000 10000 8000 6000 4000 2000 0 Market Loans Interest Paid Unspent Balance/Surrender  Decadal unspent balance: Rs. 85,887.87 crore  Savings range: 9.7% to 38.32%  Market Loans: Rs. 11550.79 crore (relates to repayment of pre-2003-04 Peerless, etc. loans)  Interest paid on market loans: Rs. 6,396. 43 crore 56
  56. 56. 10000 9000 8000 Rs. In Crore 7000 6000 5000 4000 3000 2000 1000 0 2007-08 2008-09 2009-10 2010-11 2011-12 GOI Treasury Bills 5146 8858 8175 6747 6021 Interest 231 351 481 407 464 While there are large budget surrenders every year large investments are made in short-term investments in Govt. of India Treasury Bills. If current bank account balances are factored, the State is not short of funds even if Central Plan grants were temporarily reduced 57
  57. 57.  Artificial revenue surplus of Rs. 926.85 crore that  Artificially lowered the fiscal deficit to Rs. 1,646.05 crore, in 2011-12, i.e. 1.43% of GSDP (of Rs. 1,15,409.64 crore), less than half the maxima set by the FRBM Act  If 80% of capital allocations were expended, fiscal deficit = Rs. 8822 crore in 2011 raising fiscal deficit to 7.64% of GSDP  If 80% of revenue budget allocations were expended = revenue deficit of Rs. 4829 crore in 2011-12  2010-11 & 2011-12 Annual Plan Outlays almost equal gross budget unspent balances 58
  58. 58. Grant Grant Apprn. Grant savings Unspent 29- Medical & Public health – 2215 & 2217 1147.44 744.17 65% overall unspent 30-Water Supply & Sanitation – 4215 659.39 459.32 66% overall unspent in ARWSC 31- Urban Dev (T&CP) - 2217 363.16 279.73 77% unspent in JNNURM 38- Welfare of SC/ST/OBC-2225 223.01 190.59 85% unspent overall 39- Social Security, Welfare & Nutrition – 2235, 2236 3205.98 1930.17 60% unspent overall 42 - Social Services – 2070, 2575 1690.42 1561.30 92% unspent overall 49- Irrigation – 4701, 4702 170.69 170.69 100% unspent overall 59 – Sericulture & Weaving – 2851 28.16 27.82 99% unspent 63 – Water Resources - 4711 2061.26 1610.27 78% unspent overall 64 – Roads & Bridges – 3054, 5054 220.00 220.00 100% unspent 71 –Education - 2202 435.57 430.44 99% unspent overall with MDMS single largest 73 – Urban Dev (GDD) – 2217, 4217 936.35 516.59 55% unspent overall 76 -78 – Hill Areas & BTC – 2202, 3451 694.66 421.53 61% unspent overall 11836.09 8562.62 72% overall unspent GRAND TOTAL 59
  59. 59. 90-100% = 51-89% = 0-50% = 60
  60. 60. Dept Unspent Balance (Rs. In Crore) Dept Unspent balance (Rs. In Crore) Health 221.25 Irrigation 440.20 Town & Country Planning 109.01 Industry & Commerce 131.73 Mines, Minerals & Power 296.15 Social Welfare 219.08 Hill Areas 380.25 Planning & Development 238.81 Agriculture 280.33 Education (Technical) 117.45 Minority Development 678.64 Education (General) 919.17 Finance 567.57 Finance (Taxation) 377.88 Food & Civil Supplies 225.72 Guwahati Development 407.67 Rural Development 200.85 Public Works 1306.23 WPT & BC 190.42 Home 722.34 Water Resources 629.91 Forest 188.60 Secretariat Administration 1293.85 TOTAL 9952.69 61
  61. 61. To state the facts frankly is not to despair the future nor indict the past. The prudent heir takes careful inventory of his legacies and gives a faithful accounting to those whom he owes an obligation of trust. US President John F Kennedy 62
  62. 62.  The oldest known accounting records date back to 3500 B. C. and relate to commerce in the Mesopotamian Valley. The duties of a scribe (a Mesopotamian accountant) were to record commercial transactions and to audit these transactions to ensure compliance with the Code of Hammurabi, the earliest legal code. To be a scribe in Mesopotamia was to be an honored and respected member of society.  Governmental accounting developed in ancient Rome. The emperors had control of the Roman Treasury but the records were maintained by quaestors (Roman accountants). To manage their vast commercial enterprises within the empire the Romans developed the use of an annual budget.  Medieval accounting was agency accounting. The chief task of the accountant was to monitor the taxes due to the king from his various counties. Tax settlements were made at a table covered with a checkered cloth. In England this cloth was named the Exchequer.  The father of modern accounting was Luca Pacioli, a Franciscan friar of the Renaissance period. In 1494 he published a book on mathematics which contained twenty-six chapters outlining a system of bookkeeping used by Italian merchants. This system was called the "Method of Venice".  Scotland was the birthplace of the modern accounting profession. In 1854 a group of Scottish accountants petitioned Queen Victoria for a charter to form a society of accountants. It was granted and they called themselves Chartered Accountants using the letters, "C A" as a professional designation.  Many of these Chartered Accountants came to the United States in the late 1800s and set up firms in New York, Philadelphia, and Chicago. PRINCIPAL ACCOUNTANT GENERAL (A&E), ASSAM 63
  63. 63. The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew and act anew. US President Abraham Lincoln (1809-65) 64

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