Why West Bengal lost Rs 547 crore

West Bengal lost Rs 546.68 crore (Rs 5.46 billion) in 2007-08 for not having its own fiscal responsibility law, which mandates fiscal discipline, according to the Comptroller and Auditor General (CAG).

The March 2008 CAG report noted that the state could not take debt relief of Rs 546.68 crore (Rs 237.50 crore on account of annual instalment and Rs 309.18 crore interest) in 2007-08.

These benefits are offered by the Centre against timely repayment of loans and for achieving fiscal targets. The state has been missing such benefits since 2005.

The report also stated that overall fiscal liabilities of the state increased 50 per cent from Rs 89,388 crore (Rs 893.88 billion) in 2003-04 to Rs 1,34,402 crore (Rs 1.34 trillion) in 2007-08.

The state's revenue deficit has reached 2.91 per cent and 4.07 per cent fiscal deficit.