CAG flags Kerala’s borrowing predicament
The Comptroller and Auditor General (CAG) report reveals that the majority of Kerala's borrowings are used to repay old debts rather than for capital expenditure. The report warns that this fiscal trend limits the state's long-term growth and infrastructure development.
Why it matters
It highlights a critical fiscal sustainability issue in Indian state governance that impacts public infrastructure investment.
The Comptroller and Auditor General’s (CAG) report on State Finances for 2024-25, tabled in the State Assembly on Tuesday (June 23), has drawn attention to how little of the State’s borrowings actually go towards capital expenditure, or asset creation that benefits a State in the long-term.
The article relies on official government audit data to report on fiscal policy.
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