The Comptroller and Auditor General (CAG) on Monday (May 25, 2026) raised concern over the fiscal sustainability of the Assam Government in its report for the 2024-25 fiscal, pointing at the increasing debt load, high committed expenditure and limited capital investment in the State.

In the report on state finances for 2024-25 tabled in the Assembly, the CAG also said that the delay in submission of utilisation certificates, pending accounts of departmental undertakings and autonomous bodies, is affecting financial reporting.

It said the state's economy showed moderate growth during the 2024-25 fiscal year, with Gross State Domestic Product registering a growth of 13.07% as against the 2023-24 financial year.

The State contributed 1.95% to the country's GDP, with the figure on an increasing trend over the past five years.

During 2024-25, the state's revenue receipts grew by 5.87%, driven primarily by growth in the State's share in union taxes and duties, higher tax collections, notably under SGST.

However, non-tax revenue of the state declined by 9.34%, and grants from the Centre also decreased during the period, the CAG report said.

The State's expenditure was dominated by a moderate growth of revenue spending (6.10%).

The CAG report said that during the previous five years, despite increasing pressure from committed expenditure, the state was able to maintain a consistent level of fiscal flexibility, though with limited scope for expansion in discretionary and developmental expenditures.

Capital expenditure during the previous five years remained "volatile and below budgeted levels (except for 2021-22), reflecting constraints in infrastructure investment", the report said.

Subsidies during 2024-25 increased sharply (124.63%), mainly due to power subsidies, the CAG noted.

"As a result, the state was not able to arrest the revenue and fiscal deficits within the target levels of the State FRBM Act, thereby rendering little room for fiscal consolidation," the report said.

"Though outstanding liabilities remained within the numerical targets, this needs to be seen in the context of growing outstanding off-budget borrowings and contingent liabilities through guarantees," it added.

The increasing debt load, high committed expenditure and limited capital investment raise concerns about fiscal sustainability, the report said, stressing revenue augmentation, better expenditure control and structural reforms to ensure long-term fiscal health.

The CAG said transparency should be enhanced in off-budget borrowings, ensuring timely accounting and reports, and steps should be taken for more judicious budget provisioning.