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CAG Flags Rajasthan Fiscal Deficit Breaches Across Successive Governments
Rajasthan’s government has been spending more than its financial plans allowed in many years.
This difference between spending and income is called a fiscal deficit.
The state aimed to keep the deficit at 3% or less of its economic output.
However, the deficit was higher than that in most of the years studied.
It reached 9.25% in 2015-16 and stood at 4.25% in 2024-25.
Rajasthan has also relied on money transferred from the Central Government.
The CAG said the state should improve its income estimates and watch departmental spending more closely.
It also recommended better debt management and a special fund for old-scheme pension payments.
The report says borrowed money should mainly be used for long-term projects rather than everyday expenses.
Rajasthan’s fiscal deficit exceeded prescribed limits through most years examined by the CAG.
The deficit was 9.25% in 2015-16, 3.04% in 2017-18, and 4.25% in 2024-25.
The state has depended heavily on Central Government transfers as revenue receipts fell below budget estimates.
Rajasthan recorded a revenue surplus only in 2011-12 and 2012-13 before returning to revenue deficits.
The CAG recommended stronger revenue forecasting, debt management, pension funding, and monitoring of government spending.
- Who
- The Comptroller and Auditor General of India examined Rajasthan’s finances across the tenures of Vasundhara Raje, Ashok Gehlot, and Bhajan Lal Sharma governments.
- What
- A CAG report found repeated breaches of fiscal-deficit targets and recommended measures to strengthen Rajasthan’s fiscal management.
- Where
- Rajasthan, India.
- When
- The data covers 2015-16 through 2024-25, with estimates and projections extending from 2025-26 through 2028-29.
- Why
- The deficit remained above the prescribed limit in most examined years, while revenue receipts underperformed budget estimates and borrowing pressures continued.
Key facts
- Fiscal-deficit target
- The Fiscal Responsibility and Budget Management framework sought to limit the fiscal deficit to 3% or less of GSDP.
- Highest listed deficit
- The fiscal deficit reached 9.25% in 2015-16.
- Latest actual figure
- The deficit was recorded at 4.25% in 2024-25.
- 2025-26 estimate
- The revised estimate places the fiscal deficit at 3.89%.
- 2026-27 estimate
- The budget estimate projects the deficit at 3.69%.
- Revenue surplus
- Rajasthan recorded a revenue surplus only in 2011-12 and 2012-13.
- Recommended debt use
- The CAG recommended using borrowed funds primarily to create capital assets rather than finance revenue expenditure.
Sources
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