West Bengal's fiscal deficit hits ₹61,924 crore (3.41% of GSDP)

It assesses the state's fiscal position, including deficits, debt, and compliance with financial rules.

Who it concerns: Government of West Bengal

What the auditor found

• Revenue Deficit of ₹ 39,727 crore (2.19% of GSDP) in FY 2024-25
• Fiscal Deficit of ₹ 61,924 crore (3.41% of GSDP), which was within the FRBM target of 3.50%
• Total liabilities stood at 38.66% of GSDP, breaching the FRBM target of 38.00%
• Revenue Expenditure accounted for 118.59% of Revenue Receipts in FY 2024-25, indicating fiscal stress
• Revenue Receipts grew by 6.71% to ₹ 2,13,700 crore, but revenue buoyancy (0.68) and own revenue buoyancy (0.92) remained below one
• CAG notes that persistently high committed expenditure on salaries, pensions, and interest payments constrained fiscal correction and limited space for capital investment

Also in the document

• CAG reports that the State incurred Revenue Deficits throughout the decade from 2015-16 to 2024-25
• CAG states that Fiscal Deficit expanded sharply at a CAGR of about 12.83% over the last decade, leading to greater dependence on borrowings
• CAG observes that the State was unable to create the fiscal space necessary for capital investment due to structural rigidity in revenue expenditure