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State Finances 2022–23 Report
September 26 , 2025
15 hrs 0 min
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- The Comptroller and Auditor General (CAG) released the State Finances 2022–23 report on 20 September 2025.
- The report is the first of its kind, providing comprehensive data, analysis, and trends on fiscal parameters for all 28 states over 10 years (2013–14 to 2022–23).
- In 2022–23, states’ total debt was 22.17 percent of India’s Gross Domestic Product (GDP).
- The Fiscal Responsibility and Budget Management (FRBM) Act (2003) sets a benchmark of 20 percent of GDP for state government debt by 2024–25.
- Punjab had the highest debt-to-GSDP (Gross State Domestic Product) ratio at 40.35 percent.
- It is followed by Nagaland (37.15 percent) and West Bengal (33.70 percent).
- All 28 states reported a fiscal deficit, ranging from 0.76 percent (Gujarat) to 6.46 percent (Himachal Pradesh) of GSDP in 2022–23.
- The FRBM Act recommends that states limit fiscal deficit to 3.5 percent of GSDP for FY 2022–23.
- States’ Own Tax Revenue (SOTR) as a share of total revenue varied widely—from 70 percent in Haryana to just 9 percent in Arunachal Pradesh.
- High public debt is attributed to subsidy schemes, such as farm loan waivers, free or subsidised electricity, and cash transfers.
- Committed expenditures (e.g., salaries, pensions, interest payments) made up over 42 percent of revenue expenditure and stayed above 6 percent of GSDP in most years.
- Many states continue to show low revenue mobilisation and heavy dependence on Goods and Services Tax (GST).
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