Most states bunch up expenditure in March, CAG warns of fiscal risks

CAG warns most Indian states of fiscal imprudence as March spending overshoots limits, with key departments exhausting large portions of budgets in the last month of FY24

Most Indian states are bunching up their expenditure in the last month (March) of the financial year, an analysis of 2023-24 state finance audit reports by the Comptroller and Auditor General (CAG) showed, cautioning against such “non-adherence to financial propriety”.

 

A review of data available for 15 states and the National Capital Territory of Delhi revealed that expenditure in March far exceeded the ceilings prescribed by the Union finance ministry, which caps last-quarter spending at 25 per cent and March spending at 10 per cent of the budget.

 

“Maintaining a steady pace of expenditure is a crucial component of sound