The CAG said four PSUs of Delhi Government have incurred a whopping loss of Rs 2,072 crore in 2010-11 and there was a need to take steps to improve financial performance.
“In view of the importance of public expenditure on social and economic development, it is important for the state government to take appropriate expenditure rationalisation measures,” said the CAG.
In a report, the CAG also expressed concern over meagre return the government earned on its investments from government companies and corporations.
“As on March 31, 2011, the Government had invested Rs 12,616.58 crore in government companies and corporations. The return on these investments was a meagre 0.35 per cent during last three years, while the government paid interest at an average rate of 9.51 per cent on its borrowings during 2008-2011,” the CAG said.
In the report, which was tabled in the Delhi Assembly, the CAG said the fiscal deficit which was on an increasing trend has come down during 2010-11.
“The fiscal deficit has also shown increasing trend upto 2009-10 when it was Rs 3,549.96 crore. However, during 2010-11 this trend was reversed and the State had a fiscal surplus of Rs 729.60 crore,” said the CAG.
It said during 2010-11 revenue receipts grew by Rs 4572.76 crore (22.36 per cent) over the previous year. “The increase was contributed by tax revenue of Rs 3029.89 crore, non-tax revenue of Rs 721.55 crore and grants from Government of India which was Rs 821.32 crore.”
The report said revenue surplus has continuously shown an increasing trend during last five years as it increased from Rs 4438.13 crore in 2006-07 to Rs 10,642.36 crore in 2010-11.
The CAG, however, sought appropriate expenditure rationalisation measures to improve further the financial position of the government.