| UNSTARRED |
QUESTION NO: |
5978 |
| LIABILITIES OF STATES |
| SHASHI THAROOR |
Will the Minister of
|
FINANCE |
be pleased to state:-
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(a) whether the ratio of aggregate liabilities to GDP of various States is considerably high and if so, the details thereof, State-wise for each of the last three years;
(b) the percentage of revenue expenditure of the States spent on paying interest liabilities, State-wise during the same period;
(c) whether the poor fiscal condition of States has led to reduction in the share of social sector expenditure as a percentage of overall expenditure of States and if so, the details thereof, State- wise; and
(d) the reaction of the Government on the above? |
| ANSWER |
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) As per the Reserve Bank of India`s recent publication ``State Finances: A Study of Budgets of 2011-12`, the aggregate outstanding debt to National Gross Domestic Product (GDP) ratios of States at the end-March 2010-11 (Revised Estimates) and end-March 2011-12 (Budget Estimates) were 23.5% and 22.5% respectively. These are lower than the benchmark ratios of 26.6% and 26.1%, recommended by the Thirteenth Finance Commission (FC-XIll) for these years respectively. These are also lower than the Debt/GDP target of 24.3% recommended by the FC- XIII for 2014-15.
As regards outstanding debt to Gross State Domestic Product (GSDP) ratio is concerned, the States having ratio higher than FC-XIII projections for each of the last three years, is at Annexure-I.
(b) As compiled from Statement 1 of Reserve Bank of India`s recent publication `State Finances: A Study of Budgets of 2011 -12`, the details of percentage of revenue expenditure of States spent on paying interest liabilities is at Annexure-ll.
(c) & (d) As per the assessment of the Reserve Bank of India, in its recent publication `State Finances: A Study of Budgets of 2011-12`, social sector expenditure by the States, has shown improvement since 2008-09. Social sector expenditure as percentage of total expenditure has increased from 37.6% in 2008-09 to 38.7% in 2009-10 and estimated at 40% each in 2010 -11 (Revised Estimates) and 2011-12 (Budget Estimates). |
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