Central Government debt at 58.46% of GDP, missing 40% legal target

It reviews whether the government met its debt reduction targets and assessed the transparency of its fiscal disclosures.

Who it concerns: Union Government, specifically the Department of Economic Affairs (Ministry of Finance), regarding the FRBM Act compliance.

What the auditor found

• Central Government debt as a percentage of GDP was 58.46% at the end of FY 2024-25, failing to meet the statutory target of 40%.
• Central Government Debt increased by ₹14.24 lakh crore (8.29%) over the previous year, primarily due to internal debt.
• ₹38.40 lakh crore in taxes were raised but not realized at the end of FY 2024-25, an increase of ₹7.29 lakh crore from the previous year.
• Of the unrealized tax amount, ₹4.80 lakh crore was not under dispute.
• CAG found variations in figures for Arrears of Interest (D2 Statement) compared to Union Government Finance Accounts.
• CAG noted variations in financial assets (loans to Foreign Governments and States/UTs) disclosed in the D4 Statement within the Receipt Budget.
• CAG identified variations in Budget Estimate figures for fiscal parameters used in Half-Yearly Statements and the Medium-Term Fiscal Policy Statement compared to the Annual Financial Statement 2024-25.

Also in the document

• The Central Government missed the legal sunset target of limiting debt to 40% of GDP, ending the year at 58.46%.
• A significant amount of ₹38.40 lakh crore in collected taxes remained un-realized at the end of the fiscal year.