The ratio of fiscal liabilities to GSDP has increased during 2015-16 over previous year and was more than the prescribed limit of 13.73 per cent as provided in FRBM Act and the 14th Finance Commission, CAG has observed.
The fiscal liabilities at the end of the current year worked out to `37,817 crore which was 15.04 per cent of the GSDP as against `30,981 crore (13.11 per cent of GSDP) during the previous year, it observed.
The Government should maintain the ratio of fiscal liabilities to GSDP at prescribed level in future, it recommended. The Revenue Expenditure continued to be a dominant (84.35 per cent) component of the total expenditure during 2015-16. Capital expenditure during the year constituted 15.33 per cent of the total expenditure which is an improvement over the previous year, it observed.
The State may consider enhancing capital expenditure as a proportion of total expenditure in order to create assets to stimulate growth, CAG observed.
