Daijiworld Media Network - Nagpur
Nagpur, Dec 15: The Comptroller and Auditor General of India (CAG) has raised serious concerns over the Maharashtra government’s management of borrowed funds, capital expenditure and debt servicing during the financial year 2024–25, pointing to persistent inefficiencies and deviations from established financial norms.
In its report titled “Accounts at a Glance 2024–25”, tabled in the state legislature on Saturday, the CAG stressed that borrowed funds should ideally be fully deployed for creating capital assets, while revenue receipts should be used to repay principal and interest. However, the auditor noted that the state fell well short of this benchmark in 2024–25.
The report revealed that out of total borrowings amounting to Rs 1,43,635 crore during the year, the state government spent only Rs 82,773 crore on capital expenditure. Similar shortfalls were observed in previous years as well — Rs 72,573 crore in 2023–24 against borrowings of Rs 1,25,988 crore; Rs 61,644 crore in 2022–23 against Rs 94,702 crore; Rs 46,670 crore in 2021–22 against Rs 90,587 crore; and just Rs 29,687 crore in 2020–21 despite borrowings touching Rs 1,85,516 crore.
The CAG also expressed dissatisfaction over the utilisation of internal debt. Of the Rs 1,23,000 crore raised as internal debt in 2024–25, a significant portion was used to meet past liabilities rather than productive investment. According to the report, Rs 40,440 crore went towards repayment of existing debt obligations, while Rs 53,455 crore was used to service interest payments.
On debt servicing, the auditor observed that while there was a rising trend up to 2022–23 followed by a decline till 2024–25, the entirety of public debt receipts during the year was consumed by debt servicing. Meanwhile, gross capital expenditure in 2024–25 fell short of budget estimates by Rs 56,590 crore, largely due to lower spending under capital outlay, which alone accounted for a shortfall of Rs 39,265 crore.
The report also criticised the state government for a heavy concentration of expenditure in the final month of the financial year, in violation of the Bombay Financial Rules, 1959, which caution against such end-of-year spending spikes. The CAG noted that in March 2025, 18 departments incurred expenditure exceeding Rs 100 crore each, with such spending accounting for more than 25 per cent of their annual outlay.
Departments cited for excessive year-end spending included the Housing Department (90 per cent), Environment and Climate Change Department (77 per cent), Planning Department (65 per cent), Minorities Development Department (53 per cent), and Tourism and Cultural Affairs Department (50 per cent).
Additionally, the CAG pointed out shortcomings in maintaining the mandated guarantee redemption fund balance. To maintain the minimum required balance of five per cent of outstanding guarantees — amounting to Rs 3,974.35 crore as of March 31, 2025 — the government was required to contribute Rs 2,304.96 crore during 2024–25. However, it contributed only Rs 430.74 crore, leading to an understatement of revenue expenditure.
Overall, the audit report underscores structural weaknesses in fiscal discipline and calls for more prudent management of borrowings, capital investment and expenditure planning by the Maharashtra government.