CAG flags decline in states' tax buoyancy, other issues

As the 16th Finance Commission gears up for its assessment of public finance, the Comptroller and Auditor General of India (CAG) on Wednesday flagged key areas of concern, including a decline in the states' own tax revenue (SOTR) buoyancy, varying levels of SOTR and non-tax revenue, underscoring the need for more robust revenue collection mechanisms.

- FE BUREAU

AS THE 16TH Finance Commission gears up for its assessment of public finance, the Comptroller and Auditor General of India (CAG) on Wednesday flagged key areas of concern, including a decline in the states' own tax revenue (SOTR) buoyancy, varying levels of SOTR and non-tax revenue, underscoring the need for more robust revenue collection mechanisms.

The CAG also drew attention to the need for regular reporting of the off-budget borrowings, meeting the FRBM Act (Fiscal Responsibility and Budget Management Act, 2003) targets and taking into account post-audit liabilities computed by the CAG in its reports.

In a presentation to the Commission, the CAG shared the audit findings for the Centre and the states in various sectors, the fiscal challenges and stress points, including the gap between expenditure and non-debt receipts for the union and states combined, the supreme auditor said in a statement.