Kolkata, Jan 25 (IANS): The 'Fiscal Health Index: 2025', released by NITI Aayog, has revealed the poor show of West Bengal in revenue mobilisation, expenditure quality and debt index.
The FHI 2025, launched by the Chairman of the 16th Finance Commission, Arvind Panagariya in New Delhi, provides a comprehensive assessment of the fiscal health of 18 major States.
Of the 18 states reviewed, West Bengal ranked 16th in the report.
The first cause of concern for West Bengal, as per the report, is the quality of expenditure by the state government.
As per the report, West Bengal's spending on physical infrastructure as a proportion of the total expenditure has reduced from 5.3 per cent in 2018-19 to 3 per cent in 2022-23 which is lower than the national average.
Equality pathetic is the picture of capital expenditure as a proportion of total expenditure, which has reduced from 12.2 per cent in 2018-19 to 8.3 per cent in 2022-23 and is again lower than the national average.
Although the percentage under the head of social expenditure as a proportion of total expenditure had been comparatively higher in West Bengal at 28.2 per cent during the fiscal under review, the figure is again lower than the national average.
The report on 'Fiscal Health Index: 2025' has highlighted that while West Bengal's tax revenue was the major source of income for the state government primarily due to collection under SGST and hence grew at an annual rate of 6.6 per cent over the past five years, the state's non-tax revenue has witnessed a decline over the last five years.
At the same time, the report added, West Bengal's reliance on grants-in-aid as a proportion of revenue receipts has increased from 17.6 per cent in 2018-19 to 19.6 per cent in 2022-23.
The same report has pointed out that although West Bengal's debt as a percentage of gross state domestic product (GSDP) has declined from 40.7 per cent in 2010-11, the last financial year under the previous Left Front regime, to 35.7 per cent in 2018-19, the real cause of concern for the state government on this count is the interest payment on the accrued debt.
"Interest payments account for 20.47 per cent of Revenue Receipts in the current year, constraining the ability of the state to allocate funds for development," the report read.