2 weeks ago
CAG report reveals underutilised funds, falling capital spending in Delhi
There is a special office in India that checks how governments spend public money.
It is called the Comptroller and Auditor General, or CAG for short.
CAG made a report about how Delhi spent its money in the year 2024-25.
The report says the previous Delhi government, led by a group called the Aam Aadmi Party, did not use a lot of the money it was given.
Almost a quarter of the budget money was left unused at the end of the year.
The report also says Delhi spent much less on building new roads, schools, and hospitals.
Money spent on such projects fell by more than half in a few years.
At the same time, the government spent a lot on subsidies, mostly to lower electricity bills.
CAG warned that spending too much on subsidies could hurt Delhi's finances in the long run.
The report was presented to the Delhi Assembly by the current Chief Minister, Rekha Gupta.
Delhi Chief Minister Rekha Gupta tabled the CAG report on Delhi government finances for 2024-25 in the Assembly on 10th August.
Delhi's per capita GSDP grew at 6.39 per cent CAGR during 2015-25, below the national per capita GDP growth of 8.14 per cent.
Capital expenditure fell from ₹8,311 crore in 2021-22 to ₹3,695 crore in 2024-25, just 6.53 per cent of total expenditure.
Of the ₹80,798.81 crore budget estimate, only ₹61,911.19 crore was spent, leaving 23.38 per cent unutilised and ₹7,624.28 crore lapsed at the end of March 2025.
Subsidy spending rose 5.17 per cent to 10.18 per cent of revenue expenditure, with power subsidies dominating, prompting CAG to warn about fiscal sustainability.
- Who
- The Comptroller and Auditor General (CAG) prepared the report, Delhi Chief Minister Rekha Gupta tabled it in the Assembly, and it concerns the previous Aam Aadmi Party (AAP) government led by Arvind Kejriwal.
- What
- An audit report on Delhi government finances exposing underutilised funds, deficient budgeting, declining capital expenditure, and rising subsidy spending.
- Where
- Delhi, India; tabled in the Delhi Assembly.
- When
- The report covers the financial year 2024-25 and was tabled on Monday, 10th August.
- Why
- To assess Delhi's financial health; the report concluded that deficient budgeting, under prioritised asset creation, and excessive subsidies could threaten long-term fiscal sustainability.
Key facts
- Report
- CAG report on Delhi government finances, 2024-25
- Tabled by
- Delhi CM Rekha Gupta in the Assembly on 10th August
- Delhi per capita GSDP growth (2015-25)
- 6.39% CAGR
- India per capita GDP growth (2015-25)
- 8.14%
- Capital expenditure 2024-25
- ₹3,695 crore (6.53% of total expenditure)
- Capital expenditure 2021-22
- ₹8,311 crore
- Budget estimate vs actual spend 2024-25
- ₹80,798.81 crore vs ₹61,911.19 crore
- Unutilised budget
- 23.38% (savings of ₹18,887.62 crore)
- Subsidy share of revenue expenditure
- 10.18%, with power subsidies at 67-73% of the outgo
Quotes
Comptroller and Auditor General report
Official audit report on Delhi government finances
“"There is a need for revenue augmentation, better expenditure control and structural reforms to ensure long-term fiscal health."”
opindia.com
“"Estimating expenditure much more than actual requirement was indicative of a deficient budgeting exercise."”
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