GUWAHATI: Assam government’s expenses on salaries, wages, pensions, and interest payments continue to pressure fiscal space, according to a CAG report.
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As per the Report of the Comptroller and Auditor General of India on State Finances for the year 2024-25 – Government of Assam, pension burdens rose from 15.91 per cent to 19.37 per cent and interest payments increased from 8.01 per cent to 9.77 per cent.
Salaries and wages remained the largest component (35.48 per cent to 41.95 per cent of revenue receipts).
Subsidies during 2024-25 increased drastically by Rs 568.04 crore (a 124.63 per cent jump) from the previous year, driven heavily by a Rs 400 crore power subsidy to the Assam Power Distribution Company Limited (APDCL), and Rs 153.59 crore for National Food Security Scheme, and Rs 14.45 crore for implementation of New Industrial Policy.
The audit report also pointed to a poor return on public investments made by the Assam government.
Out of 31 State Public Sector Enterprises (SPSEs) where the government invested a total of Rs 10,903.95 crore up to 2024-25, only one (Assam Power Generation Corporation Limited) provided any return (Rs 15 crore, which was only 0.11 per cent of the total investment).
As many as 17 government companies and 3 statutory corporations incurred heavy accumulated losses at Rs 592.30 crore and Rs 112.90 crore, respectively, the CAG report showed.
On the positive side, Assam's Gross State Domestic Product (GSDP) at current prices increased significantly at an average annual rate of 18 per cent, growing from Rs 3.39 lakh crore in 2020-21 to Rs 6.43 lakh crore in 2024-25, staying broadly higher than the national GDP growth rate.
The contribution of GSDP in GDP also grew consistently from 1.71 per cent in 2020-21 to 1.95 per cent in 2024-25 financial year, indicating improvement in the state’s economy.
The state's per capita income saw a steady increase from Rs 86,947 to Rs 1.59 lakh over these five-year period, though it still remains below the national average of over Rs 2 lakh.
Revenue receipts as a percentage of GSDP and contribution from various sources consistently declined from 19.10 per cent in 2020-21 to 15.06 per cent in 2024-25, indicating a weakening revenue collection effort relative to the expanding state economy.
The state has developed a higher reliance on its share of Union taxes, while the proportion of grants-in-aid received from the Government of India nearly halved over the analyzed five-year period, as per the audit report.
“The composition of receipts shows a shift towards higher reliance on the state’s share in Union taxes, while the proportion of grants-in-aid from government of India has nearly halved over the period,” the CAG report read.