Maharashtra CAG Report: Budget Inefficiency & Fiscal Irregularities

Mumbai, Jul 10 (PTI) Maharashtra's budget execution came under sharp scrutiny in the Comptroller and Auditor General's (CAG) report for 2024-25, which flagged significant budgetary inefficiencies, accounting irregularities and understatement of key deficit indicators, raising concerns over the state's fiscal management.

The report, which was tabled in the assembly on Friday, said supplementary provisions totalling Rs 29,742.51 crore in 62 cases proved wholly unnecessary as the actual expenditure failed to reach even the original budget allocations.

It also noted that nearly 23.40 per cent of the state's annual expenditure was incurred in March 2025 alone, indicating a year-end rush to exhaust budgetary provisions.

The audit highlighted several financial irregularities that distorted the state's fiscal position.

Revenue expenditure of Rs 4,069.91 crore was incorrectly classified as capital expenditure, while interest liabilities of Rs 762.49 crore on interest-bearing deposits and reserve funds remained undischarged, it said.


It also pointed to a short contribution of Rs 3,277.58 crore to the National Pension System and failure to transfer cess amounting to Rs 1,515.23 crore collected mainly for education and employment guarantee to the designated funds.

The CAG report pointed out that, after correcting these irregularities, the state's revenue deficit would rise from the reported Rs 29,994.76 crore to Rs 36,342.29 crore, equivalent to 0.80 per cent of the Gross State Domestic Product (GSDP).

The audit further said the actual fiscal deficit would increase to Rs 1,44,926.46 crore, or 3.20 per cent of the GSDP, after accounting for all liabilities, exceeding the fiscal target prescribed under the Fiscal Responsibility and Budget Management framework.

The report also said the state's total outstanding liabilities would rise from Rs 8,59,097 crore to Rs 8,87,422 crore after including off-budget borrowings.

If unspent balances of Rs 20,993.06 crore lying with VPDAs had been credited back to the Consolidated Fund, the revenue deficit would have been substantially lower at Rs 9,001.70 crore, the CAG report added.