The State government has started the exercise to understand the quantum of off-budget borrowings availed of by the previous BRS government.
Accordingly, the government had asked the departments/corporations to include the details of the OBBs in their budget proposals. The departments have been asked to incorporate in a specific proforma the details of the Government Guaranteed Loans raised by the special purpose vehicles that are serviced by the government and loans guaranteed by the government that are being serviced by them.
The departments have also been asked to include details of the non-guaranteed loans raised and serviced by the SPVs/corporations. The proposals should incorporate the name of the lending agency, purpose of loan, guaranteed amount and the amount counter signed along with loan sanctioned and disbursed.
The tenure of the loan, moratorium if any and loan sanction proceedings should also form part of the proposals along with details of principal and interest repayment schedule. The development ahead of budget preparation assumes significance in the light of concerns expressed over the OBBs resorted to by the previous government.
The Comptroller and Auditor General of India, in its State Finances Audit Report for financial year 2020-21 said although the percentage of the total outstanding liabilities to GSDP at 28.11 % was within the limit of 29.5 % prescribed by the XV Finance Commission, it would be way above the limit at 38.1 % if the OBBs were considered. Non-disclosure of OBB had a dual impact of diluting public financial management and legislative oversight and was in contravention of the XV Finance Commission recommendations.
Meanwhile, in a communication to the departments, the government said the budget should be designed for optimal allocation of scare resources taking into account many socio-political considerations. It was a statement of estimated expenditure and the estimated resources for financing the various schemes, during the ensuing financial year.
All the heads of departments/estimating officers were requested to furnish budget estimates for establishment/ maintenance/ principal interest expenditure and for schemes expenditure. Keeping in view the changes in the priorities of the government, the HoDs/estimating officers were directed to analyse the schemes critically and also relevance/necessity of continuing the schemes.
