CAG expresses concern over Assam’s fiscal sustainability as debt rises, investment remains limited

The Comptroller and Auditor Basic (CAG) on Monday (Might 25, 2026) raised concern over the fiscal sustainability of the Assam Authorities in its report for the 2024-25 fiscal, pointing on the rising debt load, excessive dedicated expenditure and restricted capital funding within the State.

Within the report on state funds for 2024-25 tabled within the Meeting, the CAG additionally mentioned that the delay in submission of utilisation certificates, pending accounts of departmental undertakings and autonomous our bodies, is affecting monetary reporting.

It mentioned the state’s economic system confirmed reasonable development through the 2024-25 fiscal yr, with Gross State Home Product registering a development of 13.07% as in opposition to the 2023-24 monetary yr.

The State contributed 1.95% to the nation’s GDP, with the determine on an rising pattern over the previous 5 years.

Throughout 2024-25, the state’s income receipts grew by 5.87%, pushed primarily by development within the State’s share in union taxes and duties, larger tax collections, notably underneath SGST.

Nonetheless, non-tax income of the state declined by 9.34%, and grants from the Centre additionally decreased through the interval, the CAG report mentioned.

The State’s expenditure was dominated by a reasonable development of income spending (6.10%).

The CAG report mentioned that through the earlier 5 years, regardless of rising strain from dedicated expenditure, the state was in a position to preserve a constant degree of fiscal flexibility, although with restricted scope for growth in discretionary and developmental expenditures.

Capital expenditure through the earlier 5 years remained “unstable and under budgeted ranges (aside from 2021-22), reflecting constraints in infrastructure funding”, the report mentioned.

Subsidies throughout 2024-25 elevated sharply (124.63%), primarily because of energy subsidies, the CAG famous.

“Because of this, the state was not in a position to arrest the income and monetary deficits throughout the goal ranges of the State FRBM Act, thereby rendering little room for fiscal consolidation,” the report mentioned.

“Although excellent liabilities remained throughout the numerical targets, this must be seen within the context of rising excellent off-budget borrowings and contingent liabilities by way of ensures,” it added.

The rising debt load, excessive dedicated expenditure and restricted capital funding elevate considerations about fiscal sustainability, the report mentioned, stressing income augmentation, higher expenditure management and structural reforms to make sure long-term fiscal well being.

The CAG mentioned transparency must be enhanced in off-budget borrowings, guaranteeing well timed accounting and studies, and steps must be taken for extra considered price range provisioning.