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

This audit examines the Central Government's compliance with the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, for the financial year 2024-25. It reviews whether the government met its debt reduction targets and assessed the transparency of its fiscal disclosures.

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

• 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.

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