Madhya Pradesh's revenue surplus drops, CAG finds

Who it concerns: Government of Madhya Pradesh

What the auditor found

• Undischarged liabilities of ₹1,681.77 crore (0.43% of Total Expenditure) carried forward, including State Compensatory Afforestation Deposit, SDRF, SDMF, and off-budget borrowings.
• Revenue receipts grew by 7.04% in 2024-25, a significant drop from 14.73% growth in 2023-24.
• Subsidies more than tripled over the past five years and more than doubled since the previous year.
• Large-scale savings and excess expenditure in 57 grants and two appropriations, requiring regularisation by the legislature.
• Delays in submission of utilisation certificates by departments such as Panchayati Raj Development and Social Justice.
• Substantial use of Minor Head 800 (Other Receipts/Expenditure), affecting transparency.
• Pending full migration to Single Nodal Agency (SNA) and SNA-SPARSH systems for fund tracking.
• State failed to arrest fiscal deficit within target levels of the State FRBM Act.

Also in the document

• CAG notes that the state's contribution to India's GDP is declining over the last 5 years, except for 2024-25.
• CAG highlights that high committed costs and subsidies (60% of Revenue Expenditure) leave limited fiscal space for capital investment.
• CAG reports that the state's revenue surplus decreased significantly, rendering little room for fiscal consolidation.