State Finances Revealed: A Decade of Rising Committed Expenditures
The CAG report highlights a rise in committed expenditures on salaries, pensions, and interest payments across states, increasing by 2.49 times over a decade. The report details these expenditures and fiscal challenges, with revenue expenditures making up a substantial share of state budgets between 2013-14 and 2022-23.
- Country:
- India
A new report by the Comptroller and Auditor General (CAG) of India uncovers significant growth in committed expenditures on salaries, pensions, and interest across states. From fiscal year 2013-14 to 2022-23, these expenditures surged by 2.49 times, reaching Rs 15,63,649 crore. The comprehensive analysis also delves into revenue expenditures, which consistently represent 80-87% of state budgets.
The CAG findings reveal that salaries remain the largest component of committed expenditure, followed by pensions and interest payments. Notably, nine states, including Andhra Pradesh and Gujarat, reported higher interest payments than pension costs, highlighting increased debt servicing demands. Overall, the report showcases expanding financial commitments and budget pressures across India.
Additional insights include the targeted fiscal outcomes for states in 2022-23. Seventeen states aimed for revenue surplus, with only twelve achieving this goal. Meanwhile, five states targeted deficits, and among them, Karnataka managed a revenue surplus. Despite fiscal targets, several states continue grappling with fiscal pressures and rising expenditure demands.
(With inputs from agencies.)
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