The Comptroller and Auditor General of India (CAG) has expressed concern that the State government utilised borrowed funds for repayment of public debt in the financial year 2021-22.
“Normally, public debt is discharged using revenue surplus. However, the government incurred revenue deficit of ₹9,335 crore during 2021-22. The borrowed funds were utilised for the repayment of public debt,” the CAG said in its report tabled in the Legislative Assembly on Sunday.
The CAG said the extent to which the fiscal deficit, as represented by borrowed funds, had been channelised towards creation of capital assets was an indicator of prudent financial management. The borrowings of ₹46,995 crore in the year was partly utilised to meet capital expenditure of ₹28,883 crore and loans and advances of ₹8,469 crore.
