Bhubaneswar: The Comptroller Auditor General (CAG) has asked the State Government to mobilise additional tax resources through tax and non tax revenue by rationalising the user charges, cost recovery of maintenance expenditure of irrigation projects, as per the recommendation of the 12th and 13th Finance Commissions.
As per the latest reports of CAG, the revenue receipts has grown by 26 % this year, as compared to 12 % in 2008-09 and 7% in 2009-10, which was mainly contributed from the State’s share of Union taxes and grants-in-aid receipts from the Centre.
In comparison to 2009-10, the revenue buoyancy ratio relative to Gross State Domestic Product (GSDP) has increased from 0.314 to 1.104 in 2010-11, but the growth rate of revenue receipts was lower in comparison to 28% growth in the year 2006-07.
Moreover while the Revenue Expenditure (RE) constituted 86% of the total expenditure,this year, the Non Planned Revenue Expenditure (NPRE) constituted 75%, which surpassed the normative assessment of the 13th Finance Commission by Rs 4,292 crore.
So the CAG has advised the State Government to reduce subsidy payments to Public Sector Undertakings (PSUs) and to close down the non working PSUs.