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CAG report reveals underutilised funds, falling capital spending in Delhi

CAG report reveals underutilised funds, falling capital spending in Delhi
Explained: CAG report exposes former Arvind Kejriwal-led-govt in Delhi · opindia.com

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.

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."”
opindia.com

Sources

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