CAG State Finances 2025: Salary, Subsidy and Debt Trends
Why in the news
CAG’s State Finances Publication 2025 showed sharp growth in state salary spending and debt over ten years.
| Item | Finding |
|---|---|
| Salaries | 2.5 times higher; largest committed expenditure |
| Subsidies | Tripled to ₹3.09 lakh crore; Punjab 17% of spending |
| Committed expenditure | 43.5% of revenue spending; Nagaland 74%, Kerala 63% |
| Public debt | 3.4 times higher at ₹59.6 lakh crore |
| Tax devolution | Average share about 27% |
About
- Yearly CAG report on all 28 states: revenue, spending, debt, subsidies, fiscal sustainability.
- UP, Bihar, MP, West Bengal and Maharashtra took half of devolved taxes.
Exam angle
- Highest committed share: Nagaland.