UP, Gujarat, Jharkhand, 10 other States record revenue surplus in FY25: CAG report
GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Prelims + Mains·
Why in news
The CAG released the State Finances 2024-25 report revealing that 13 states achieved a revenue surplus while 15 faced deficits, highlighting the fiscal health of Indian states.
Background
The CAG report on State Finances 2024-25 shows that state tax revenues accounted for 50% of total revenue receipts. The aggregate revenue deficit of the 15 revenue-deficient states reached ₹3,46,385 crore, which is 1.5% of their combined GSDP.
Facts for Prelims
- BodyCAG: The Comptroller and Auditor General of India is the supreme audit institution of the country.
- FactState tax revenues accounted for 50% of total revenue receipts in FY2024-25.
- FactAggregate revenue deficit of 15 revenue-deficient states: ₹3,46,385 crore.
- FactRevenue deficit ratio: 1.5% of the combined GSDP of the 15 deficient states.
For Mains
Q. Analyze the fiscal challenges faced by revenue-deficient states in India and suggest measures to ensure sustainable fiscal health while maintaining federal equilibrium.
Dimensions to cover in your answer
- Fiscal federalism friction: Balancing state-level developmental spending with the requirement for fiscal discipline and deficit control.
- Revenue concentration: High reliance on state tax revenues (50%) necessitates robust local tax administration and widening the tax base.
Keywords: Fiscal Federalism · Revenue Surplus · GSDP · Fiscal Discipline · CAG Audit
More Economy notes
- Middle East War, Petrol Prices Explained: Why Petrol Prices in India Don't Follow Crude's Trajectory · 23 June 2026
- CAG flags ‘variation’ of ₹12,669 crore in Kerala’s KIIFB, KSSPL off-Budget borrowings for 2024-25 · 23 June 2026
- The need for strengthening India’s EV supply chains · 23 June 2026
- RBI Governor asks banks to treat MSMEs as growth partners · 23 June 2026
- India leads world in ship recycling, captures 35.4% global share · 23 June 2026
- RBI Monthly Bulletin: Monsoon shortfall could weigh on growth, inflation outlook · 23 June 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
Report a mistake →Ask for something →thesatyadheesh@gmail.com
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.