CAG Report on Rising Public Debt

On 4th September 2025, the Comptroller and Auditor General (CAG) released a decadal analysis of the fiscal health of India’s 28 states.

The report highlighted a sharp rise in public debt over the last decade, indicating a heavier fiscal burden on state finances.

Aspect	Details
Report Focus	The CAG report presented a decadal analysis of state finances and examined the rising public debt of India’s 28 states.
Debt Growth	States’ total public debt increased 3.39 times between 2013-14 and 2022-23.
Debt-to-GSDP Rise	Debt as a share of Gross State Domestic Product (GSDP) rose from 16.66% to 22.96%, showing a heavier fiscal burden on states.
Share in National GDP	States’ public debt stood at 22.17% of India’s Gross Domestic Product (GDP) in 2022-23.

PT Facts

CAG: Constitutional authority under Article 148.
Audit Role: Audits accounts of the Union and State governments.
Report Submission: Reports are submitted to the President or Governor.
Legislative Scrutiny: CAG reports are examined by committees such as the Public Accounts Committee.
Public Debt: Rising debt increases interest burden and may crowd out developmental expenditure.
FRBM Acts: Union and state FRBM laws aim to maintain fiscal discipline and sustainability.

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