The national auditor has said the state government has incurred 41% higher debt than the previous fiscal and burdened the exchequer with heavy interest liability at a higher rate.
The state government had taken a loan of Rs 15,083 crore to adjust the monitory deficit of Rs 11,027 crore, leaving a balance of Rs 3,645 crore, which is poor debt management, said CAG.
It has invested Rs 39,179 crore in corporations, boards, government companies, rural banks and joint ventures. In the last five years, the average return on this investment was 0.25% while the state government has paid interest at the rate of 7.75%.