State priorities split as outlays surge, spending patterns diverge

States’ aggregate expenditure increased 131 per cent from Rs 22.18 trillion in FY16 to Rs 51.20 trillion in FY25, according to a report by the Comptroller and Auditor General released early this month. Yet state spending diverges on priorities.  In FY25 actuals, West Bengal led social welfare and nutrition outlay at 14.86 per cent of its budget. Chhattisgarh topped agriculture spending at 17.18 per cent, driven by stronger procurement through digitised farmer participation.  Jharkhand led in rural development at 12.06 per cent. Arunachal Pradesh led transport at 17.23 per cent, and Goa topped energy outlay at 18.59 per cent. Andhra Pradesh led welfare spending on Scheduled Castes, Scheduled Tribes and Other Backward Classes at 13.28 per cent. States are projecting better growth in these sectors over FY26 and FY27.