In social sector expenditure involving major components, the Meghalaya government''s expenditure on health as a percentage of AE (aggregate expenditure) was higher than the North-east states average during both the years 2005-06 and 2009-10, whereas expenditure on education was lower, the CAG report tabled in the Assembly today said.
Fiscal position indicated the state not only maintained revenue surplus during the last five-year period ending 2009-10, but it also reached its peak.
Fiscal deficit of the state also significantly reduced during 2009-10, compared to previous year and primary deficit of 2008-09 turned into a primary surplus, the report said.
Revenue account increased by Rs 1,700 crore over 2005-06 and growth of revenue receipts was 23 per cent over the previous year, the report said, adding the increase was mainly contributed by grants-in-aid from the Centre (31 per cent), non-tax revenue (22 per cent), tax revenue (20 per cent) and state''s own share of union taxes and duties (3 per cent).
Revenue receipts at Rs 3,447 crore was higher by Rs 435 crore than the assessment made by the state government in its fiscal correction path (FCP) (Rs 3,012 crore), the CAG said.
The report also said the expenditure on salaries during 2009-10 was 6.14 per cent higher than the assessment made in FCP (Rs 1,157 crore).
Pension payment during the year exceeded the normative assessment made by the 12th Finance Commission and by state government in its FCP by 61 per cent and 58 per cent, respectively.
Noting that fiscal liabilities of the state increased by Rs 230 crore (6.44 per cent) from Rs 3,573 crore in 2008-09 to Rs 3,803 crore in 2009-10, the report said this indicated continued reliance of the state on borrowed funds.
The Centre directly transferred Rs 534 crore to the state implementing agencies during 2009-10, the report said.
Nevertheless, it cautioned that direct transfers ran the risk of poor accountability and called for a system to ensure proper accounting of these funds, which remain outside the state budget.
The report said there was an overall saving of Rs 1,056.41 crore. Grants under North Eastern Areas, Welfare of Scheduled Castes and Cooperation posted large savings persistently for the last five years, it said.
The CAG, however, recommended the state to increase tax compliance, collect revenue arrears, reduce tax administration and avoid leakages of revenue.