In a press note, the Senior Deputy Accountant General, Nagaland has briefed the Report of the CAG of India on the State Finances of Nagaland for the year 2022-23 based on the audited accounts of the Government of Nagaland for the year 2022-23. The report provides an overview of the finances, budgetary management and quality of accounts, financial reporting practices and other matters relevant to State Finances.
The Report has been placed in the State Legislature on 08th March 2025 and is uploaded in the CAG’s website: www.cag.gov.in. The copy of the Audit Report can also be obtained from the Office of the Principal Accountant General (Audit), Nagaland.
A synopsis of the important findings contained in the Report is presented below:
⮚ Gross State Domestic Product (GSDP) (at current prices) of Nagaland grew from ₹26,527.42 crore in 2018-19 to ₹35,933.96 crore in 2022-23.
⮚ Budget Outlay of the State grew at a Compound Annual Growth Rate (CAGR) of 6.26 percent from ₹20,469.97 crore in 2018-19 to ₹26,092.48 crore in 2022-23.
⮚ During 2022-23, GSDP increased by 12.60 per cent from ₹31,912.54 crore in 2021-22 to ₹35,933.96 crore in 2022-23. The State had a Revenue surplus of ₹688.90 crore which was 1.92 per cent of GSDP. Fiscal deficit was ₹1,562.63 crore during 2022-23 which was 4.35 per cent of GSDP and primary surplus was ₹569.40 crore, which was 1.58 per cent of GSDP.
⮚ Revenue Receipts increased by 4.82 per cent (₹648.12 crore) over the previous year (₹13,451.14 crore). The State’s Own Tax Revenue increased by ₹160.80 crore (12.36 percent), Non-Tax Revenue increased by ₹174.82 crore (57.59 per cent), Grants-in-Aid from GoI decreased by ₹212.43 crore (3.05 per cent) and State’s Share of Union Taxes and Duties increased by ₹524.92 crore (10.77 per cent) respectively over the previous year.
⮚ Revenue Surplus decreased from ₹1,634.06 crore in 2021-22 to ₹688.90 crore in 2022-23. Fiscal Deficit (₹1,562.63 crore) increased by ₹1,302.11 crore(499.81 per cent) as compared to previous year (₹260.52 crore).
⮚ Revenue Receipts increased by ₹2,661.85 crore (23.27 per cent) from₹11,437.41 crore in 2018-19 to ₹14,099.26 crore in 2022-23 at a CAGR of 5.37 per cent.
⮚ The share of Grants-in-Aid inRevenue Receipts decreased from 57.21 per cent in 2018-19 to 47.94 per cent in2022-23.
⮚ Revenue Expenditure constituted on an average, 86.79 per cent and ranged between 86.17 (2021-22) and 90.54 per cent (2019-20) of the Total Expenditure during the period 2018-23. The percentage of Revenue Expenditure to Total Expenditure was 83.22 per cent and Revenue Expenditure to GSDP was 37.32 per cent during 2022-23.
⮚ Capital Expenditure (₹2,704.22 crore) increased by ₹810.37 crore (42.79 per cent)
during 2022-23 compared to the previous year (₹1,893.85 crore) and stood at
16.78 percent of total expenditure during the year. During the five-year period of
2018-23, the borrowings were utilised for repayment of earlier borrowings which
ranged between 74.38 per cent(2022-23) and 89.30 per cent(2018-19).
⮚ During 2022-23, Fiscal Deficit (₹1,562.63 crore) increased by ₹1,302.11 crore (499.81 per cent) as compared to previous year (₹260.52 crore).
⮚ Committed expenditure (₹9,921.54 crore) like salary and wages, pension, interest payments steadily increased by ₹2,652.06 crore at a CAGR of 8.09 percent from ₹7,269.48 crore in 2018-19 to ₹9,921.54 crore in 2022-23. The Committed Expenditure during the year 2022-23 was 70.37 per cent of the Revenue Receipts and 73.99 per cent of the Revenue Expenditure.
⮚ At the end of 2022-23, the Government provided guarantees of ₹189.96 crore against loans to various Corporations. During 2022-23, the Government did not pay any amount as no guarantee was invoked.
⮚ The outstanding Public Debt liability rapidly increased by ₹5,126.29 crore at a CAGR of 13.02 per cent from ₹8,115.52 crore in 2018-19 to ₹13,241.81 crore in 2022-23 whereas the Debt/GSDP ratio increased from 39.75 to 43.38 per cent.
⮚ There was an outstanding excess expenditure of ₹455.78 crore under 27 Grants (pertaining to the year 2017-18 to 2022-23).
⮚ As on 31 March 2023, an amount of ₹990.75 crore, including both Central and State shares, were parked in Single Nodal Agency (SNA) bank Account of 74 schemes.
⮚ During the year 2022-23, 105 grants involving ₹86.65 crore were provided to 19 Departments for which Utilisation Certificates (UCs) are due for submission during the year 2023-24. As on March 2023, there are 145 UCs worth ₹252.11 crore, which are due for submission for periods pertaining up to 2022-23. High pendency of UCs is fraught with risk of misappropriation of funds.
⮚ There were 323 Abstract Contingent (AC) Bills involving ₹554.76 crore pending for adjustment by submission of Detailed Countersigned Contingent (DCC) Bills, as of March 2023. Out of these, 89 AC bills amounting to ₹159.70 crore pertained to the year 2022-23. Non-adjustment of AC Bills may lead to fraught with the risk of misappropriation.
⮚ As on 31 March 2023, there were seven State Public Sector Enterprises (SPSEs) in Nagaland, which included two non-working SPSEs under the audit jurisdiction of the Comptroller and Auditor General of India (CAG). The prescribed timelines regarding submission of Financial Statements were not adhered to by seven SPSEs whose 42 accounts were in arrears. Out of five working SPSEs, three had incurred losses aggregating to ₹8.41 crore while only one SPSE earned a profit of ₹0.46 crore as per their latest finalised accounts and one SPSE viz. Kohima Smart City Development Limited did not finalise and submit the Annual Accounts for supplementary audit since its inception (March 2017). However, the profit earning SPSE did not declare any dividend during 2022-23.
⮚ As per their latest finalised accounts, the accumulated losses (₹81.45 crore) of two working SPSEs had completely eroded their paid-up capital of ₹25.55 crore which is a cause of concern. The State Government needs to either improve their working or review the working of these SPSEs to decide on continuing their operations.
(DIPR)