Appreciation Note on the accounts of the Government of Assam for the quarter ending June 2015

This Appreciation Note on Civil Accounts is an analysis of the Government's accounts for the quarter

ending 30 June, 2015 and is intended to serve as a tool for financial management. A broad overview of Government activities, as reflected in the accounts, has been presented through brief explanations, statements, tables and graphs, for the quarter ending 30 June 2015, to enable informed decision making by the Government. 1. Accounts at a Glance

The Civil Accounts for the month of June, 2015 have been finalized on 13 October, 2015,

incorporating 63 Treasuries, 312 PW Divisional Accounts and 144 Forest Divisional Accounts. There has been an exclusion of 12 Public Works Divisional Accounts and 03 Forest Divisional Accounts, up to the closure of June, 2015 accounts.

(Amount in ` Crore)

Sl No

Accounting Parameters

Budget Estimates 2015-2016

Actuals Percentage to Budget Estimates

Upto June 2015

Up to June 2014

Up to June 2015

1

REVENUE RECEIPTS (a) TAX REVENUE (b) NON-TAX REVENUE (c) GRANTS-IN-AID AND CONTRIBUTION

57064.10 29559.70

4325.87 23178.53

9859.29 6258.65

833.20 2767.44

8677.03 5294.39

592.02 2790.62

17.28 21.17 19.26 11.94

2

CAPITAL RECEIPTS (a) RECOVERY OF LOANS AND ADVANCES (b) OTHER RECEIPTS (c) BORROWINGS AND OTHER LIABILITIES

4687.67

7.35

… 4680.32

-2924.17

504.40

… -3428.57

-3197.03

2.89

… -3199.92

…

6862.59

… ---

3 TOTAL RECEIPTS ( 1+2 ) 61751.77 6935.12 5480.00 11.23

4

NON PLAN EXPENDITURE (a) NON-PLAN EXPENDITURE ON

REVENUE ACCOUNT (b) NON-PLAN EXPENDITURE ON INTEREST PAYMENT (c) NON-PLAN EXPENDITURE ON CAPITAL ACCOUNT

34909.70

34679.93

2612.11

229.77

5010.48

5009.96

262.24

0.52

4942.08

4941.91

307.15

0.17

14.35

14.45

10.04

0.23

5

PLAN EXPENDITURE (a) PLAN EXPENDITURE ON REVENUE ACCOUNT (b) PLAN EXPENDITURE ON CAPITAL ACCOUNT

26065.83 16882.93

9182.90

1924.58 1638.67

285.91

537.92 272.87

265.05

7.38 9.71

3.11

6

TOTAL EXPENDITURE [4 (a) +(c) +5+7] (a) REVENUE EXPENDITURE

(b) CAPITAL EXPENDITURE

61751.77

51562.86

9412.67

6935.12

6648.63

286.43

5480.00

5214.78

265.22

11.23

12.89

3.04

7 LOANS AND ADVANCES DISBURSED

776.24 0.06 --- 0.01

8 REVENUE SURPLUS (+) / DEFICIT (-) [ 1-6(a) ]

5501.24 3210.66 3462.25 58.36

9 FISCAL SURPLUS (+) / DEFICIT (-) { 1+2(a)+2(b)-6}

-4680.32 3428.57 3199.92 …

2

As seen from the above table, the Government of Assam received ` 2767.44 crore as Grants-in-Aid from the Government of India, against a Budget Estimate of ` 23178.53 crore. Plan Expenditure on Revenue Account constituted 9.71 per cent of the provisions made in the Budget Estimate for the 2015-2016.

2. Deficit / Surplus Revenue surplus of the State Government, at the close of June, 2015 accounts, stood at ` 3210.66 crore, against a revenue surplus of ` 3462.25 crore at the end of the corresponding accounts of the previous year. Similarly, fiscal surplus stood at ` 3428.57 crore at the close of June, 2015 accounts, against a fiscal surplus of ` 3199.92 crore at the end of the corresponding accounts of the previous year.

3. Sources and Application of Funds The Cash Balance with the Reserve Bank of India, according to the Monthly Civil Accounts, increased from ` (-) 1652.59 crore i.e, (Cr.), at the beginning of April, 2015, to ` (-) 20.58 crore (Cr.) at the end of June, 2015 accounts, whereas the same, as per Reserve Bank of India, Central Accounts Section, Nagpur, was ` 20.91 (Dr.). The difference of ` 0.33 crore (Dr.) between figures of this office and that of Central Accounts Section, Reserve Bank of India, was due to erroneous reporting by the agency banks to the RBI, Guwahati, which is under reconciliation.

(Amount in ` Crore) Sources Applications

June 2015

June 2014

June 2015

June 2014

1. Opening Balance -1652.59 -1704.63 1. Revenue Expenditure 6648.63 5214.78

2. State’s own Revenue 3363.21 2863.88 2. Capital Expenditure 286.43 265.22

3. Miscellaneous --- --- 3. Loans & Advances Repaid 4. State’s share of Union Taxes 3728.64 3022.53 (a) To Central Government 13.40 13.14

5. Central Grants / Assistance other than loans

2767.44 2790.62 (b) To Others 488.12 1998.90

6. Recoveries from Borrowers 504.40 2.89 4. Loans & Advances given 0.06 ---

7. Receipts from Central Loans 15.70 1.94

8. Receipts from Public Debt & net effect of Small Savings, Deposits & Advances (other than Central Loans)

3420.13

4667.91

5. Payment from Public Debt and net effect of Small Savings, Deposits & Advances ( other than Central Loans)

2292.95

2436.41

9. Net effect of adjustment of Suspense and Remittance Balances & increase/ decrease of Reserve Funds

---

---

6. Net effect of adjustment of Suspense and Remittance Balances & increase / decrease of Reserve Funds

2437.92

1648.98

7. Closing Cash balance -20.58 67.70

Total 12146.93 11645.14 12146.93 11645.14

3

4. Cash Management a) Ways and Means position Ways and Means position of the Government of Assam for the 1st

Particulars

Quarter i.e. to the end of June, 2015 is detailed below:-

No. of days

Amount availed

( in ` crore)

Amount repaid

(in ` crore)

Interest paid

(in ` crore) (a) Minimum balance maintained without any advance 91 Nil Nil Nil (b) Minimum balance maintained by taking ordinary and special ways & means advances Nil Nil Nil Nil

(c) Minimum balance maintained by taking overdrafts Nil Nil Nil Nil (d) Shortfall from the agreed minimum balance Nil Nil Nil Nil

b) Investments Made

(i) Government invested ` 30469.75 crore in short term Treasury Bills to the end of the quarter as against rediscounting of ` 28209.02 crore.

(ii) Details of investment made by the State Government in Departmental Undertakings indicating budget

provision made, actual investment and returns earned on the investments.

Head of classification

Budget for the year

(`in crore)

Actual Investment

made for the quarter ending

June 2015 (`in crore)

Return on investment for

the quarter ending

June 2015 (`in crore)

4225 01

190

03 190

Capital Outlay on Welfare of SC/ST/OBC Welfare of Scheduled Castes Investments in Public Sector and Other Undertakings Share Capital to Assam State Dev. Corp. Ltd for SC Welfare of Backward Classes Investments in Public Sector and Other Undertakings Share Capital to Assam State Dev. Corp. Ltd OBC

0.24

0.30

---

---

---

4408 02

190

Capital Outlay on Food Storage and Warehousing Storage and Warehousing Investments in Public Sector and other Undertakings Share Capital Contribution to Assam State Warehousing Corporation

0.80

---

4853

60 190

Capital Outlay on Non-ferrous Mining and Metallurgical Industries Other Mining and Metallurgical Industries Investment in Public Sector & Other Undertakings Share Capital Contribution to Assam Mineral Development Corporation Ltd.

1.56

---

4885 60

190

Other Capital Outlay on Industries and Minerals Others Investment in Public Sector & Other Undertakings Share Capital Contribution to ACPL

15.00

---

5055 190

Capital Outlay on Road Transport Investments in Public Sector and Other Undertakings Share Capital contribution to Assam Road Transport Corporation

182.80

---

4

5. Receipts

a. Revenue Receipts Major contributors to revenue were taxes on Commodities and Services and Taxes on Income and Expenditure. Non-Tax Revenue contributed only 8.45 per cent of the revenue receipts.

Revenue Receipts and Grants-in-aid contribution

Components Actuals

(Amount in ` Crore)

Percentage to total Revenue Receipts

A. TAX REVENUE * 6258.65 63.48 Taxes on Income and Expenditure 2197.75 22.29 Taxes on Property and Capital Transactions 164.54 1.67 Taxes on Commodities & Services 3896.36 39.52 B. NON-TAX REVENUE 833.20 8.45 Interest Receipts, Dividends & Profits 58.63 0.59 General Services 110.77 1.12 Social Services 10.48 0.11 Economic Services 653.32 6.63 C. GRANTS-IN-AID AND CONTRIBUTIONS 2767.44 28.07 Total Revenue Receipts 9859.29 100.00 (*) Tax Revenue is inclusive of share of net proceeds received from Central Government.

As against the Budget Estimate of ` 33885.57 crore, the inflow of Revenue Receipts (Tax and Non tax) at the end of the 1st quarter of the year was ` 7091.85 crore i.e., 20.93 per cent. The Revenue Receipts from its own resources were expected to be ` 17218.26 crore as per budget estimates for 2014-2015. The actual receipts at the end of the 1st

Particulars

quarter were ` 3363.22 crore i.e. 19.53 per cent of Budget Estimates. b) Tax Revenue

Tax Revenue of the Government experienced a growth of 18.21 per cent as compared to the corresponding quarter of previous year. Taxes on Income and Expenditure, Property and Capital Transactions and Commodities and Services increased significantly as compared to previous year.

(Amount in ` Crore) BE

2015-2016 Up to

June 2015 Up to

June 2014 Growth (+)/ Shortfall (-)

Actual Percent (a) Taxes on Income & Expenditure 9684.73 2197.75 1775.65 +422.10 +23.77 (b) Taxes on Property & Capital Transactions

601.71 164.54 70.95 +93.59 +131.91

© Taxes on Commodities and Services 19273.26 3896.36 3447.79 +448.57 +13.01

Total 29559.70 6258.65 5294.39 +964.26 +18.21

5

(Amount in ` Crore) Items Up to Q.E. 30 June 2015

Share of net proceeds assigned to States 3728.64 Taxes on Agricultural Income 3.34 Other Taxes On Income and Expenditure 45.99 Land Revenue 109.06 Stamps and Registration Fees 55.66 State Excise 156.77 Taxes on Sales, Trades etc. 1911.88 Taxes on Vehicles 91.36 Taxes on Goods and Passengers 139.61 Taxes and Duties on Electricity 2.25 Other Taxes and Duties on Commodities and Services 14.09

Total 6258.65

State Tax Revenue ( ` in Crore )

109.06

45.99

55.66

156.77

1911.88

91.36

3.34

139.612.25

14.09

3728.64

Taxes on Agricultural Income Other Taxes on Income & ExpenditureLand Revenue Stamps & Registration FeesState Excise Taxes on Sales, Trades etc.Taxes on Vehicles Taxes on Goods & PassengersTaxes & Duties on Electricity Other Taxes & Duties on Commodities & SevicesShare of net proceeds assigned to States

C) Non-Tax Revenue Overall collection of Non-tax revenue is higher than the corresponding quarter of the previous year. The shortfall is noticed only in case of Interest Receipts, Dividends and Profits.

(Amount in ` Crore )

Particulars BE 2015-2016

Up to June 2015

Up to June 2014

Growth (+) / Shortfall (-) Actual Percent

Interest Receipts, Dividends and Profits 530.61 58.63 104.51 -45.88 -43.90 Other Non-Tax Revenue 3795.26 774.57 487.52 +287.05 +58.88 (i) General Services 235.42 110.77 24.08 +86.69 +360.01

(ii) Social Services 36.64 10.48 5.50 +4.98 +90.55 (iii) Economic Services 3523.20 653.32 457.94 +195.38 +42.67

Total 4325.87 833.20 592.03 +241.17 +40.74 .

7

6. Expenditure a) Revenue, Capital, Plan and Non-plan Expenditure While the actual expenditure to the end of June, 2015 was 11.37 per cent of gross budget provisions, Plan Revenue expenditure accounted for 9.71 per cent of the Budget Estimate.

(Amount in ` Crore)

Category B.E.

2015-2016

Actual Expenditure up

to Q.E. 30 June 2015

Percentage of

Actuals to B.E.

1. Non-Plan Expenditure 34909.70 5010.48 14.35

(a) Revenue Expenditure 34679.93 5009.96 14.45

(b) Capital Expenditure (*) 229.77 0.52 0.23

2. Plan Expenditure 26065.83 1924.58 7.38

(a) Revenue Expenditure 16882.93 1638.67 9.71

(b) Capital Expenditure (*) 9182.90 285.91 3.11

Total Expenditure 60975.53 6935.06 11.37 (*) Expenditure under Sectors E,F,G & H has not been included.

b) Sectoral Distribution to Revenue Expenditure As against Budget provision of ` 51562.86 crore, Government incurred expenditure of ` 6648.63 crore, exhibiting an overall savings of ` 44914.23 crore. .

(Amount in ` Crore) Items Budget Estimates

2015-2016 Up to Quarter ending

30 June 2015 Organs of State 593.56 56.69 Fiscal Services 568.20 57.02 Interest Payment and Servicing of Debt 2769.41 262.24 Administrative Services 5234.53 669.31 Pensions and Miscellaneous General Services 6221.02 839.98 Social Services 24473.69 4009.40 Economic Services 11184.12 753.91 Grants-in-Aid and Contributions 518.33 0.08

Total 51562.86 6648.63

c) Non-Plan Expenditure

Budget outlay and expenditure on Salaries and Interest payments.

(Amount in ` Crore) Head B.E. for the year

2015-2016 Up to Q.E.

30 June 2015 1 Salaries 20211.84 3775.30 2 Interest Payments 2612.11 262.24

8

7. Quality of Accounts Reconciliation of receipts and expenditure

Reconciliation of receipts and expenditure figures by controlling officers with the treasury figures and Chief

Controlling Officers with that of Accountant General’s figures is an imperative activity for facilitating

Public Finance accountability. As accounts form the basis for formulating budget, it is imperative that their

veracity be well established. As per best practices, Chief Controlling Officers are required to reconcile their

receipt and expenditure with those booked by the AG (A&E) every month. The position of reconciliation for

the last few years has not been encouraging.

Pendency in reconciliation is matter of great concern. A quarterly report giving CCO-wise pendency in

reconciliation is forwarded to Finance Department regularly. The latest report was sent to Finance

Department vide letter No. TMC-/ /3-3/ VERFN /2014-15/281 dated 3 September 2015.

8. Submission of Accounts by Treasuries & Divisions There is persistent delay in submission of accounts by Public Works and Forest Divisions. The following is

the position of delay in submission of accounts for the quarter ended 30 June, 2015.

Public Works Department : 9

Forest Division : 3

All these are pending for over 30 days.

Sd/- Deepak Narain Accountant General