CAG Raises Red Flag Over State Finances: 18 States Miss Fiscal Deficit Target

India's fiscal watchdog, the Comptroller and Auditor General (CAG), has flagged growing financial stress among state governments, revealing that 18 out of 28 states breached the fiscal deficit limit of 3% of Gross State Domestic Product (GSDP) in FY25. According to the report, the situation is comparable to the financial strain seen during the COVID-19 pandemic. Meghalaya recorded the highest fiscal deficit at 8.69% of GSDP, followed by Nagaland (6.14%) and Sikkim (5.59%). State liabilities also climbed to 27.89% of GSDP, highlighting rising debt pressures.

The report further noted that fiscal deficits increased by more than 25% in several major states, including Gujarat, Karnataka, Kerala, Maharashtra and Odisha. At the same time, the number of states with a revenue surplus fell from 16 to 13, indicating weakening financial health across many regions. Experts warn that rising debt obligations and widening deficits could reduce states' ability to fund infrastructure, welfare schemes and future development projects if corrective measures are not taken soon.

#CAGReport #StateFinances #FiscalDeficit #IndianEconomy #BudgetWatch

Видео CAG Raises Red Flag Over State Finances: 18 States Miss Fiscal Deficit Target канала Thebluehillmail