CAG FY 2025 report: Assam, Mizoram slip into revenue deficit; Manipur, Tripura post surplus

Northeastern states presented a mixed fiscal picture in 2024-25, with Manipur and Tripura recording revenue surpluses, while Assam and Mizoram slipped into revenue deficits despite targeting stronger fiscal positions, according to the latest State Finances 2024-25 report released by the Comptroller and Auditor General of India.

The report states that 13 states across India ended the financial year with revenue surpluses, while 15 states recorded revenue deficits. Among the Northeastern states, Manipur was among the states that maintained a revenue surplus, while Tripura exceeded its target of a zero-revenue deficit and finished the year with a surplus.

In contrast, Assam and Mizoram were among nine states that had budgeted for a revenue surplus but ultimately ended FY25 in deficit. The other states that missed their revenue surplus targets were Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Karnataka, Maharashtra and Telangana.

Mizoram was also among four states that received Finance Commission revenue deficit grants during the year, alongside Himachal Pradesh, Punjab and West Bengal.

The report further highlighted rising fiscal pressures in the Northeast. Assam, Meghalaya, Mizoram, Nagaland and Tripura were among the states that witnessed a substantial increase in fiscal deficits during 2024-25 compared to the previous financial year.

Nationally, the fiscal outlook remained challenging. Of the 28 states, 18 exceeded the indicative fiscal deficit target of 3 per cent of Gross State Domestic Product (GSDP) recommended by the Fifteenth Finance Commission. The combined revenue deficit of the 15 deficit states stood at Rs 3.46 lakh crore, while the net revenue deficit across all states was Rs 2.19 lakh crore.

The report also noted that salaries, pensions and interest payments continue to consume a significant share of state finances. Among all states, Nagaland recorded the highest committed expenditure ratio at 74 per cent of revenue expenditure, highlighting the fiscal constraints faced by some smaller states.

As of March 31, 2025, the total liabilities of all states stood at Rs 90.51 lakh crore. The report observed that states collectively have remained in fiscal deficit throughout the past decade, with renewed fiscal stress visible in several regions, including parts of the Northeast, during FY25.