CAUSES FOR WORRY

Short on assets

Fiscal prudence demands use of surplus revenue and borrowings for creation of capital assets. Now that’s a tall order, particularly for a govt in a debt trap. Borrowings are being used for loan repayment and interest payments.

Salary, pension rising

Committed liabilities are a cause for concern for the fund-crunched government. Expenditure on salary, pension and retirement benefits is set to rise to ₹36,012 crore in 2018-19 from ₹34,407 crore in the previous financial year.

Power pain

The state’s power subsidy bill on free electricity to agriculture and subsidised supply to poor sections and industry has more than doubled in three years, going up from ₹5,600 crore in 2016-17 to ₹12,950 crore in 2018-19.

Math matters

The revenue and expenditure estimates are way off the mark. Budget calculations went haywire in the 2017-18 fiscal year, falling short of initial estimates. Revenue receipt estimates were short by ₹3,208 crore.

Promises in practice

Promising the moon to everyone in its manifesto, Congress government is struggling to find funds for promising such as unemployment allowance, hiked social pensions, free smart phone, etc. A case of over-promise and under-delivery!