The treasuries across the State may reach a bit of comfort zone now after an initial fund crunch during August.
Revenue collections had been lower than normal and loan interest payment as much as Rs 70 crore for the month but now some Rs 680 crore is expected from the Centre as Jharkhand’s share of taxes. Sources said it was not a pretty picture on the payment front. “We cleared bills of about Rs 40 crore on August 28, over Rs 1 crore on August 31 and about Rs 13 crore on August 31. Now, as we have received some payment last week, things are better,” said an official, requesting anonymity.
The Doranda treasury in Ranchi clears bills of departments based at Nepal House, the Jharkhand High Court and the Assembly. There are other two treasuries — at the Project Building and District Collectorate. Opposition parties, the BJP and JVM, had put the Government in the dock after media reports suggested that State coffers had no deposits to entertain bills.
However, Finance Secretary AP Singh told The Pioneer that reports of non-clearance of bills at Doranda Treasury was not a major issue. “It was just hyped to create juicy news stories,” was his take. The Government had repaid about Rs 70 crore as interest to Nabard and Hudco, which led to the fund crunch. This, in turn, meant that salaries and pensions — that cost about Rs 700 crore — were withheld. This apart, another major payment — Rs 100 crore — was made to the Jharkhand State Electricity Board (JSEB) from the energy department.
“There was no official instruction but we had to be vigilant and pass bills after considering deposits,” added the official. Now, Rs 200 crore is also expected from the Reserve Bank of India as market loans. The State Government will also take fresh loan from Nabard. On the other hand, fiscal deficit of Rs 3,390.49 crore — or 2.38 per cent of total Gross State Domestic Product — during 2011-12 has remained a problem. Additionally, non-Plan revenue expenditure — that incorporates interest payments (Rs 2,455.30 crore), pension (Rs 1,612 crore) and salaries (Rs 6,380 crore), besides others — has doubled since 2006-07.
Jharkhand’s total outstanding liabilities are above 24 per cent of GSDP. “We have to improve tax collection and search for newer ways of revenue generation. There is no alternative but strict fiscal management and discipline,” said a senior finance department official. Finance Minister Rajendra Singh assured, “There will be no mismanagement. The Government is acting to streamline fiscal management.”