KCR preps to counter Uttam talk of Telangana finances

​Hyderabad: After Opposition parties raised a hue and cry over the findings of the CAG (Comptroller and Auditor General of India) on the management of the state's finances, Telangana Chief Minister K Chandrasekhar Rao on Friday summoned the Finance department officials and sought an explanation whether the findings were genuine or only an observation.  

In a bid to counter the Opposition allegations that the finances were in a mess, KCR is likely to make a presentation on the performance of state government in the management of state finances before the media on Saturday.  

Top officials said that KCR took serious note of the TPCC president N Uttam Kumar Reddy’s power point presentation on the CAG report, particularly the state government’s failure in maintaining the financial discipline on Thursday. Reddy also posed questions to the government with regard to the CAG report and demanded an explanation.   

The CAG pulled up the Telangana government for its irregular accounting procedures and poor maintenance of the state's finances. The CAG also indicted the government for not regularising excess expenditure in the report for the FY 2016-2017.

The CAG analysed the Telangana finances during the FY 2016-17 in which the state registered revenue surplus of Rs 1,386 crore. 

The audit report disclosed that the revenue surplus was overstated by Rs 6,778 crore on account of irregular accounting.  Thus, the state had revenue deficit of Rs 5,392 crore.  

Fiscal deficit (Rs 35,281 crore) which stood at 5.46 per cent of the GSDP (Gross State Domestic Product) was understated by Rs 2,500 crore due to crediting of borrowed funds as revenue receipts.  

Official sources said that KCR had asked Finance department officials, including state Advisor (Finance) GR Reddy, to furnish the details of the finances. He analysed in depth the questions raised by the Opposition parties on the CAG findings.

Sources said that the Chief Minister had also enquired about the status of borrowings from various financial institutions and the threat of growing debt due to increased off-budget borrowings through corporations.  KCR also reviewed whether the state had violated the FRBM (Fiscal Responsibility and Budget Management) Act in getting loans from banks and central agencies.

The Chief Minister also reviewed the state financial position following the introduction of new schemes mainly the crop investment support scheme which requires nearly Rs 12,000 crore this year alone.      

The Chief Minister will take a decision to set the things right in the Finance department by taking necessary measures to bring the fiscal discipline in the coming days.