CAG Sounds Alarm Over Maharashtra's Rising Off-Budget Borrowings
The CAG report highlights concerns on Maharashtra's off-budget borrowings, affecting fiscal transparency. It stresses legislative control for sustainable finance, revealing hidden debts. The state must improve fiscal accountability, reporting all liabilities. The report urges inclusion of OBBs in legislative documents to prevent fiscal risks and ensure transparency.
- Country:
- India
The Comptroller and Auditor General (CAG) of India has raised alarms about Maharashtra's increasing dependence on off-budget borrowings (OBBs), suggesting that such practices compromise the state's fiscal transparency. The report urges legislative oversight for sustainable financial management.
The CAG report, presented to the Maharashtra legislature, reveals that off-budget financing is significantly increasing the state's public liability without legislative awareness, potentially leading to a debt trap.
Notably, the CAG calls for improved fiscal accountability by ensuring all liabilities are comprehensively reported. It emphasizes that liabilities hidden through state-owned agencies should be disclosed in both the Budget and Accounts to uphold transparency standards.
(With inputs from agencies.)
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