By NE NOW NEWS
Guwahati: The Comptroller and Auditor General (CAG) of India has flagged multiple fiscal and financial management concerns in Assam despite the state recording strong economic growth over the last five years.
According to the CAG's Audit Report on State Finances for 2024-25, 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, registering an average annual growth rate of 18 per cent.
The report noted that Assam's contribution to the national GDP increased from 1.71 per cent to 1.95 per cent during the period, while per capita income rose from Rs 86,947 to Rs 1,59,185, although 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 fell from 19.10 per cent in 2020-21 to 15.06 per cent in 2024-25, indicating weakening revenue efforts.
The report also noted that Assam became increasingly dependent on its share of Union taxes, while grants-in-aid from the Centre nearly halved during the five-year period.
Committed expenditure, including salaries, pensions and interest payments, continued to exert pressure on state finances, the audit observed.
Pension expenditure rose from 15.91 per cent to 19.37 per cent of revenue receipts over five years, while interest payments increased from 8.01 per cent to 9.77 per cent.
Subsidy expenditure also registered a sharp increase in 2024-25, rising by Rs 568 crore or 124.63 per cent over the previous year. The report attributed a major portion of the increase to a Rs 400 crore power subsidy provided to Assam Power Distribution Company Limited (APDCL).
The audit further raised concerns over government investments in State Public Sector Enterprises (SPSEs). Assam had invested Rs 10,903.95 crore in 31 SPSEs till 2024-25, but only one entity - Assam Power Generation Corporation Limited - generated returns during the year, contributing 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, though they remained within limits prescribed under the Assam Fiscal Responsibility and Budget Management framework.
The report also highlighted concerns related to budget management and financial irregularities.
Against a total budget provision of Rs 1.68 lakh crore in 2024-25, the state 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 flagged expenditure worth Rs 509.59 crore incurred without budget provisions under public debt servicing heads.
It also noted that 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 major concerns highlighted in the report 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 worth of pending 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.
Additionally, 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 for examination and recommendations.