New Delhi [India], June 16 (ANI): India’s states continued to face mounting fiscal pressures in 2024-25, with all 28 states reporting fiscal deficits and their mixed liabilities rising to Rs 90.51 lakh crore as of March 31, 2025, in accordance with the Comptroller and Auditor Common’s (CAG) report State Funds 2024-25 launched on Monday.
Presenting the important thing findings of the report, Shefali Srivastava Andaleeb, Director Common (GA-I), CAG, highlighted the widespread fiscal pressure across states.
“Within the monetary yr 2024-25, all the 28 States have been in fiscal deficit, of which 15 States had fiscal deficits above 3 per cent of Gross State Home Product (GSDP). Now we have analysed these fiscal duty indicators state-wise in the publication,” Andaleeb stated.
The report, launched by Comptroller and Auditor Common of India Ok Sanjay Murthy, supplies a decade-long evaluation of state funds from 2015-16 to 2024-25 based mostly on audited annual accounts.
Murthy expressed hope that the report would serve as an evidence-based useful resource for governments, policymakers, researchers and residents, contributing to larger fiscal transparency, accountability and sustainability across states.
The report underlined the rising fiscal burden on states regardless of enhancements in income mobilisation. Mixed budgetary expenditure of all states stood at Rs 51.20 lakh crore in 2024-25, whereas income expenditure continued to account for almost 80 per cent of whole spending.
A good portion of state expenditure remained tied up in dedicated liabilities such as salaries, pensions and curiosity funds. In response to the report, dedicated expenditure exceeded 43 per cent of the mixed income expenditure of the 28 states, with sharp variations amongst states, starting from 74 per cent in Nagaland to 29 per cent in Maharashtra.
Andaleeb stated, “Dedicated expenditure, subsidies and grants-in-aid wage expenditure collectively accounted for greater than 61 per cent of income expenditure. Subsidies alone accounted for over 10 per cent of income expenditure in 2024-25.”
The report additionally flagged cash-flow challenges in a number of states. Whereas 15 states recorded income surpluses and 13 remained in income deficit throughout 2024-25, some revenue-surplus states nonetheless resorted to Methods and Means Advances (WMA), indicating liquidity and cash-management pressures regardless of optimistic income balances, Andaleeb famous.
On the income entrance, states more and more relied on their very own assets. States’ personal tax income (SOTR) accounted for almost 50 per cent of the mixed income receipts of Rs 40.52 lakh crore in 2024-25, with State GST contributing greater than 43 per cent of whole personal tax revenues.
The report confirmed that states’ personal tax income greater than doubled from round Rs 8.40 lakh crore in 2015-16 to Rs 20.31 lakh crore in 2024-25. It additionally famous improved common annual development in tax collections through the post-GST interval in contrast with the pre-GST period.
On the similar time, the share of Grants-in-Assist and Central help in whole state revenues declined over the last decade, reflecting larger dependence on states’ personal income mobilisation efforts.
In response to the report, expenditure across social, financial and basic sectors remained broadly balanced, whereas the financial sector accounted for 63 per cent of whole capital outlay, reflecting a continued give attention to infrastructure growth. Schooling remained the most important expenditure head amongst main purposeful sectors, adopted by social welfare and power.
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