CAG report pegs revenue arrears at ₹24,462.50 crore

The Comptroller and Auditor General (CAG), in its latest audit report on State finances presented in the State Legislative Assembly on Thursday, stated that the Kerala government’s arrears revenue stood at ₹ 24,462.50 crore as on March 31, 2024.

Overall, debts show a decline compared to the previous fiscal period.

Fourteen government ministries are responsible for debts of which 6880.85 crore are more than five years old.

“Delayed revenues indicate delayed realization of revenue due to the government. This deprives the government of potential revenue receipts and ultimately affects the revenue gap,” CAG said in its report.

The State Goods and Services Tax department tops the list with uncollected revenue of ₹13,559.46 crore, almost the same as last year. The finance department (delays in interest receipts) accounted for ₹7,604.49 crore, followed by the Registration department, which had uncollected income of ₹723.53 crore.

Other departments with huge revenue arrears included Police (₹ 494.20 crore), Land Revenue Commissionerate (₹ 542.14 crore), Forest (₹ 420.92 crore), Mining and Geology (₹ 224 crore) and Excise (₹ 303.50 crore).

This is not the first time the CAG has flagged this issue. Revenues outstanding at March 31, 2022 amounted to ₹ 28,258.39 crore and ₹ 21,797.86 crore up to March 31, 2021; This shows that the State government has not been very successful in saving them.

However, the latest CAG report for 2023-24 shows a decline compared to the previous fiscal. Debts stood at ₹27,902.45 crore as on March 31, 2023, which came down to ₹24,462.50 crore in 2023-24.