CAG State Finances Report 2025

What Is It?

A yearly report from the Comptroller & Auditor General (CAG) evaluates the financial status, debt, revenue, and spending patterns of states.

Delivers an extensive overview of financial well-being, sustainability, and policy consequences for each of the 28 states.

Main Trends Noted:

Salary Expenses: Increased 2.5 times (2013-14 → 2022-23) to ₹16.6 lakh crore; largest portion of fixed spending.

Subsidy Bills: Increased more than threefold to ₹3.09 lakh crore, with Punjab leading in spending (17% of total expenditure).

Committed Expenditure: Constituted 43.49% of state revenue expenditure, with Nagaland (74%) and Kerala (63%) having the highest percentages.

Public Debt: Increased 3.4 times to ₹59.6 lakh crore (≈23% of total GSDP), elevating medium-term fiscal risk.

Union Tax Devolution: Average proportion stayed around 27%; leading 5 states (UP, Bihar, MP, WB, Maharashtra) obtained 50% of the devolved taxes.