Government Liabilities Surge in 2024-25: CAG Report Highlights Fiscal Management Challenges

The Union government's liabilities witnessed a significant surge during the fiscal year 2024-25, primarily due to an increase in public debt, according to a report from the Comptroller and Auditor General (CAG). Internal and external debt rose by 8.35% and 9.83%, respectively, compared to the prior year. By the end of FY 2024-25, internal debt was recorded at Rs 1,59,25,949 crore, with market loans composing nearly 70% of it.

Capital expenditure as a share of GDP witnessed a slight dip to 2.70% from 2.78% the previous year. The Consolidated Fund of India's major expense was debt repayment, constituting 62.57% of the total spending for 2024-25. In contrast, both revenue and fiscal deficits saw a decline, evidencing prudent fiscal management. The revenue deficit fell to 1.78% of GDP, a 26.24% decrease from the previous year, indicating improved control over expenditures.

However, the report highlighted accounting irregularities, particularly in the Central Government Employees Group Insurance Scheme (CGEGIS), with inaccurate booking affecting fund calculations. Misclassifications amounted to Rs 12,754.47 crore, including significant misbooking of expenditures and receipts. Notably, re-appropriations exceeding Rs 10 crore were found to be unnecessary across various grants, leading to inefficiencies.