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UP’s total outstanding debt shot up by nearly 39% in five years

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The Yogi Adityanath government in Uttar Pradesh has been borrowing so heavily from the market that its total outstanding debt has shot up by almost 39 per cent in five years.

However, spending on education declined while spending on health increased only marginally during this period.

What is even more surprising is the fact that in four out of five years, the state government was unable to spend even the full budgeted amount, leading to a revenue surplus.

The full support given to the Yogi Adityanath government by the Narendra Modi government — the so-called ‘double engine’ advantage — also does not seem to have helped, either in terms of finances or in planning.

According to the latest data available with the Reserve Bank of India, which compiles state government finances, the UP government has outstanding liabilities worth as much as Rs 6.5 lakh crore, as estimated in the state Budget for 2021-22.

This is 38.3 per cent more than the Rs 4.7 lakh crore debt it inherited when it took over in 2017.

The bulk of this debt mountain is owed to financial institutions, such as banks. These are called market borrowings and are taken at hefty rates of interest.

According to sources in the state finance department, a report by the Comptroller and Auditor General (CAG) on UP government’s finances, released last month, pointed out that of the total public debt at the end of 2019-20, Rs 1.99 lakh crore (or 47.7 per cent of the total) would be payable after seven years.

The CAG report referred to earlier made a shocking revelation.

The state government transferred a princely sum of Rs 71,000 crore from a sinking fund illegitimately to its “non-tax revenue” head in its books in March 2020. By rules, this should have been invested elsewhere.

The CAG roundly criticised this brazen violation, recommending that “the transfers out of the fund (Sinking Fund) are not to be treated as Revenue Receipts and the amount equivalent to loan repaid should be transferred from Sinking Fund to Major Head 8680 (Miscellaneous Government Account) on redemption of debt”.

The effect of this ‘creative’ book-keeping was that revenue receipts were boosted in the books only, there was no cash actually transferred. This is what caused the next year’s revenue surplus.

It is a common feature for some states to end the year with huge unspent amounts from their budgetary allocations. Poor and backward states are particularly prone to this aberrant thinking. And UP is no exception.

Under Chief Minister Yogi Adityanath’s leadership, four of the five years have seen a revenue surplus adding up to a huge Rs 1.32 lakh crore.

The figure given for 2021-22 is just estimated, presented in the Budget, and the actual amount may be larger. The deficit would have been even bigger but for the illegitimate transfer of sinking fund money to non-tax revenue accounts.

The year 2020-21 was the first year of the Covid pandemic and some extra spending took place. So, the state government ended up actually spending all of its allocated funds, running a small deficit of Rs 13,161 crore.

Despite borrowing Rs 1.8 lakh crore in five years, the state government has ended its term with an accumulated revenue surplus, i.e., unspent funds of Rs 1.32 lakh crore, which indicates bad planning.

Sources said that spending on two crucial sectors – education and health – was important but as a proportion of total revenue expenditure, the share spent on education declined from about 14.8 per cent in 2017-18 to 12.5 per cent in the budget estimates (BE) for the current financial year.

In 2020-21, when students of the state were struggling to keep up with their studies during the pandemic with schools/colleges and hostels closed and online mode was the dominant way of teaching, the state government saved a lot of money when actually more spending was needed to compensate for academic losses being suffered by the students.

In fact, teachers were not paid salaries, staff were denied wages, and mid-day meals were stopped.

Now, with the crucial Assembly elections looming, the government is busy distributing smartphones and tablets.
Even more disturbing is the minuscule increase in the share of health expenditure in total revenue expenditure — from 5.3 per cent in 2017-18 to 5.9 per cent in 2021-22 (BE) — at a time when the pandemic was at its peak.

Reports based on official data show that the healthcare system in UP remained inadequate to deal with the pandemic. All this would have been avoided if more funds had been allocated and applied by the state government.

Crime

Haryana IPS suicide: Punjab Scheduled Caste panel seeks report from Chandigarh DGP

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Chandigarh, Oct 11: The Punjab State Scheduled Castes Commission on Saturday took suo moto notice in the suicide case of Haryana’s ADGP Y. Puran Kumar in Chandigarh and sought a report from the Chandigarh Director General of Police.

Commission Chairman Jasvir Singh Garhi said this matter has come to his notice through the media, on which he has taken action and he has instructed the Director General of Police of Chandigarh to submit a report regarding this matter and the action taken so far on the suicide note and the complaint given by his wife Amneet Kaur through an ADGP-level officer to the commission on October 13.

Also, the Scheduled Castes Commission Chairman will visit the victim’s family’s house on October 13.

Meanwhile, Jai Narayan, a spokesperson for the 31-member committee for justice for Puran Kumar, told the media here that they formed this 31-member committee on Friday to sustain the movement across all over Haryana with key members from various regions.

“The government has not conducted any meaningful investigation, and we demand that at the very least, those responsible be terminated; only then will the post-mortem be performed,” he said.

Meanwhile, protests were held in Rohtak, demanding arrest of the accused in the suicide case. Inspector General of Puran Kumar, who allegedly shot himself dead at his Chandigarh residence on October 7 with his service revolver, left behind a “final note”.

The victim’s spouse, Amneet P. Kumar, a Haryana cadre senior bureaucrat, in a letter to Chief Minister Nayab Singh Saini has sought justice for her husband.

The letter, marked urgent and confidential, two days ago expressed anguish over what she described as a “grave injustice” and “complete administrative inaction” even after more than 48 hours of her husband’s death.

In a nine-page “suicide note”, Puran Kumar reportedly accused nine serving IPS officers of the Haryana Police, a retired IPS officer and three retired IAS officers of “caste-based discrimination”.

The serving officers included DGP Shatrujeet Singh Kapur and Rohtak Superintendent of Police Narendra Bijarniya.

Meanwhile, the government has removed Bijarniya from his post and has been replaced by Surinder Singh Bhoria as the Superintendent of Police of Rohtak.

No posting has been given to Bijarniya as of now. Congress Parliamentary Party chairperson Sonia Gandhi wrote a letter to the wife of late Haryana IPS officer, saying the incident “reveals that even the highest-level officers can be denied social justice on account of discriminatory attitude”.

“The passing away of Mr Y Puran Kumar reveals that even the highest-level officers can be denied social justice on account of the discriminatory attitude and the preconceived notions of the powers that be. Crores of Indians stand with you in your fight for justice,” she wrote.

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Mumbai Press Exclusive News

Crores of rupees were defrauded in the name of government jobs, the accused was arrested from Delhi… The accused had received money from hundreds of unemployed people

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Mumbai: The Mumbai Economic Wing has claimed to have arrested the accused in a case of cheating in the name of getting government jobs in the central and state governments in several districts of Maharashtra. Santosh Ganpat, a businessman from Navi Mumbai, filed a complaint that the accused Nilesh Kanshi Ram Rathore had charged him Rs 5 lakh for a government job and Rs 5 to 15 lakh for medical tests and appointment letters. The EOW has registered a case against him because he has cheated him of Rs 2.88 crore by promising him a job and during the investigation it was revealed that he has cheated him of Rs 10 crore. The Economic Wing has formed a team to arrest the absconding accused and searched him in Akola and other areas. The accused cheated hundreds of youths for recruitment in RCF in 2022. His complaint was filed with the EOW. The EOW received information that the accused was trying to escape from Delhi, on which the police arrested him from Delhi. The accused has been booked in Mumbai EOW and Pune Deccan. A criminal case has been registered and further investigation is underway. This operation has been carried out under the leadership of EOW chief Nisht Mishra.

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Mumbai Press Exclusive News

ANC action, drugs worth crores seized, 6 arrested

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Mumbai: The Anti-Narcotics Cell has claimed to have arrested six drug smugglers, including a Nigerian, including a Nigerian, including MD and Natropum tablets worth Rs 7.01 crore, during operations at various locations in Mumbai. 523 grams of cocaine, worth Rs 5.23 crore, was seized from a Nigerian in Vakola, Mumbai. Five accused were arrested in raids conducted in Ghatkopar, Kurla CST, Mazgaon, tardeo, Borivali areas, from whose possession Mephedone MD worth Rs 54.65 lakh was seized. These are part of five inter-state drug gangs. Other drugs including Natropum tablets were also seized in this operation. This operation was carried out by DCP Nunath Dhule on the instructions of the Mumbai Police Commissioner.

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