Fiscal stress deepens across states as all 28 post deficits in FY25: CAG

India's states continued to face mounting fiscal pressures in 2024-25, with all 28 states reporting fiscal deficits and their combined liabilities rising to ₹90.51 lakh crore as of March 31, 2025, according to a report by the Comptroller and Auditor General (CAG) released on Monday.

Presenting the key findings of the report, Shefali Srivastava Andaleeb, Director General (GA-I) at the CAG, highlighted the widespread fiscal strain. "In the financial year 2024-25, all the 28 States were in fiscal deficit, of which 15 States had fiscal deficits above 3 per cent of Gross State Domestic Product (GSDP). We have analysed these fiscal responsibility indicators state-wise in the publication," Andaleeb said. 

The report, State Finances 2024-25, released by Comptroller and Auditor General of India K Sanjay Murthy, provides a decade-long assessment of state finances from 2015-16 to 2024-25 based on audited annual accounts. Murthy expressed hope that the report would serve as an evidence-based resource for governments, policymakers, researchers and citizens, contributing to greater fiscal transparency across states.