Archive · 23 Jul 2026
Madhya Pradesh Subsidies Triple, Strain Finances: CAG Report
Madhya Pradesh has seen a big increase in subsidies over the past five years, which has put a lot of pressure on the state's money.
The Comptroller and Auditor General (CAG) report says that subsidies have more than tripled, making it hard for the state to manage its finances.
This means there is less money for important things like building roads and schools.
The state's own money (taxes) is not growing as fast as the subsidies, so they have to borrow more.
The report also says that a lot of the money borrowed is used to pay back old debts, not for new projects.
This is making the state's financial situation worse.
Subsidies in Madhya Pradesh have more than tripled over the past five years.
Revenue surplus declined significantly, limiting fiscal consolidation.
GSDP grew by 11.05% in 2024-25, but the state's share in national GDP has been declining.
Revenue expenditure accounted for 78% of total spending, driven by committed expenditure and subsidies.
Debt has grown faster than the economy over the past three years.
- Who
- Comptroller and Auditor General (CAG)
- What
- Subsidies in Madhya Pradesh have more than tripled over the past five years, straining state finances.
- When
- 2024-25
- Where
- Madhya Pradesh, India
- Why
- Increased subsidies have led to higher debt and reduced fiscal space for infrastructure and productive investment.
Pro-Subsidy Advocates
Fiscal Conservatives
Subsidy Increase
Pro-Subsidy Advocates
Subsidies are necessary for social welfare and economic development, particularly for farmers and industries.
Fiscal Conservatives
Excessive subsidies strain state finances, increase debt, and limit fiscal space for essential infrastructure.
- State
- Madhya Pradesh
- Reporting Period
- 2024-25
- Subsidy Increase
- 114.49%
- GSDP Growth
- 11.05%
- Revenue Surplus Decline
- Significant
- Debt Service
- 29.43% of total borrowings
- Loan from GoI
- Rs 66,345 crore
- Internal Debt
- Rs 3,33,216 crore
- Public Account Liabilities
- Rs 68,874 crore
- Off-Budget Borrowings
- Rs 568 crore