CAG audit flags fiscal gaps even as Assam economy grows; Rs 23,240 crore utilisation certificates pending

The Comptroller and Auditor General (CAG) of India’s Audit Report on State Finances for 2024–25 has highlighted significant fiscal and financial management concerns in Assam, even as the state registered strong economic growth over the last five years.

The report noted that Assam’s Gross State Domestic Product (GSDP) nearly doubled from Rs 3.39 lakh crore in 2020–21 to Rs 6.43 lakh crore in 2024–25, recording an average annual growth rate of 18 per cent. Assam’s contribution to the national GDP also increased from 1.71 per cent to 1.95 per cent during the period. Per capita income rose from Rs 86,947 to Rs 1,59,185, though it remained below the national average.

However, the audit pointed to declining revenue mobilisation relative to the state economy. Revenue receipts as a percentage of GSDP dropped from 19.10 per cent in 2020–21 to 15.06 per cent in 2024–25, indicating weakening revenue efforts. The state also became increasingly dependent on its share of Union taxes, while grants-in-aid from the Centre nearly halved over the five-year period.

The report highlighted that committed expenditure salaries, pensions and interest payments continued to exert pressure on government finances. Pension expenditure increased from 15.91 per cent to 19.37 per cent of revenue receipts over five years, while interest payments climbed from 8.01 per cent to 9.77 per cent.

Subsidy expenditure surged sharply during 2024–25, rising by Rs 568 crore or 124.63 per cent over the previous year. A major portion of this increase was attributed to Rs 400 crore power subsidy provided to Assam Power Distribution Company Limited (APDCL).

The audit further flagged concerns regarding government investments in State Public Sector Enterprises (SPSEs). Assam had invested Rs 10,903.95 crore in 31 SPSEs till FY 2024–25, but only one entity — Assam Power Generation Corporation Limited, generated returns during the year, contributing merely Rs 15 crore or 0.11 per cent of the total investment.

Outstanding liabilities of the state government increased from 25.72 per cent of GSDP in 2020–21 to 26.84 per cent in 2024–25, although remaining within the limits prescribed under the Assam Fiscal Responsibility and Budget Management framework.

On budget management, the CAG report revealed that against a total budget provision of Rs 1.68 lakh crore in 2024–25, the Assam government incurred expenditure of Rs 1.45 lakh crore, resulting in savings of Rs 23,126 crore or 13.71 per cent of the total allocation.

The audit also identified financial irregularities, including expenditure worth Rs 509.59 crore incurred without budget provisions under public debt servicing heads. Additionally, excess expenditure amounting to Rs 604.40 crore during 2024–25 requires legislative regularisation, while excess disbursements worth Rs 11,995.69 crore dating back to 2006–07 remain pending for regularisation.

One of the most significant concerns raised was the delay in submission of utilisation certificates. As of March 31, 2025, a total of 6,929 utilisation certificates involving Rs 23,240.56 crore remained pending. The Finance Department alone accounted for Rs 4,067 crore of outstanding certificates.

The report also flagged 1,222 pending Detailed Countersigned Contingent (DCC) bills worth Rs 753.61 crore and noted that 494 annual accounts of 75 autonomous councils, development councils and government bodies were yet to be submitted for audit.

Further, 240 annual accounts of 44 State Public Sector Enterprises remained pending before the CAG for audit scrutiny.

The report has been tabled before the Assam Legislative Assembly and referred to the Public Accounts Committee (PAC) for examination and recommendations.