2 days ago
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The Comptroller and Auditor General (CAG) connected Monday (May 25, 2026) raised interest implicit the fiscal sustainability of the Assam Government successful its study for the 2024-25 fiscal, pointing astatine the expanding indebtedness load, precocious committed expenditure and constricted superior concern successful the State.
In the study connected authorities finances for 2024-25 tabled successful the Assembly, the CAG besides said that the hold successful submission of utilisation certificates, pending accounts of departmental undertakings and autonomous bodies, is affecting fiscal reporting.
It said the state's system showed mean maturation during the 2024-25 fiscal year, with Gross State Domestic Product registering a maturation of 13.07% arsenic against the 2023-24 fiscal year.
The State contributed 1.95% to the country's GDP, with the fig connected an expanding inclination implicit the past 5 years.
During 2024-25, the state's gross receipts grew by 5.87%, driven chiefly by maturation successful the State's stock successful national taxes and duties, higher taxation collections, notably nether SGST.
However, non-tax gross of the authorities declined by 9.34%, and grants from the Centre besides decreased during the period, the CAG study said.
The State's expenditure was dominated by a mean maturation of gross spending (6.10%).
The CAG study said that during the erstwhile 5 years, contempt expanding unit from committed expenditure, the authorities was capable to support a accordant level of fiscal flexibility, though with constricted scope for enlargement successful discretionary and developmental expenditures.
Capital expenditure during the erstwhile 5 years remained "volatile and beneath budgeted levels (except for 2021-22), reflecting constraints successful infrastructure investment", the study said.
Subsidies during 2024-25 accrued sharply (124.63%), chiefly owed to powerfulness subsidies, the CAG noted.
"As a result, the authorities was not capable to apprehension the gross and fiscal deficits wrong the people levels of the State FRBM Act, thereby rendering small country for fiscal consolidation," the study said.
"Though outstanding liabilities remained wrong the numerical targets, this needs to beryllium seen successful the discourse of increasing outstanding off-budget borrowings and contingent liabilities done guarantees," it added.
The expanding indebtedness load, precocious committed expenditure and constricted superior concern rise concerns astir fiscal sustainability, the study said, stressing gross augmentation, amended expenditure power and structural reforms to guarantee semipermanent fiscal health.
The CAG said transparency should beryllium enhanced successful off-budget borrowings, ensuring timely accounting and reports, and steps should beryllium taken for much judicious fund provisioning.
