Nagpur, Dec 14 (NationPress) The Comptroller and Auditor General of India (CAG) has highlighted significant flaws in the Maharashtra government’s management of borrowed funds allocated for capital assets, the handling of internal debt, and debt servicing for the fiscal year 2024-25.

In its report titled “Accounts at a glance 2024-25”, the CAG pointed out that it is crucial to fully utilize borrowed funds for creating capital assets and to employ revenue receipts for the repayment of both principal and interest. However, it noted that the State Government failed to fully utilize these funds for capital assets in 2024-25.

According to the document presented to the state legislature on Saturday, out of the borrowed funds amounting to Rs 1,43,635 crore, the state could only allocate Rs 82,773 crore for capital expenditure. In the previous year, 2023-24, with borrowed funds of Rs 1,25,988 crore, the capital expenditure was Rs 72,573 crore. In 2022-23, against Rs 94,702 crore borrowed, it was Rs 61,644 crore, and in 2021-22, from Rs 90,587 crore, it was only Rs 46,670 crore. The year 2020-21 saw the state borrowing Rs 1,85,516 crore, yet capital expenditure was a mere Rs 29,687 crore.

The CAG also expressed dissatisfaction regarding the management of internal debt. It reported that the internal debt of Rs 1,23,000 crore raised during 2024-25 was predominantly utilized for settling debt obligations (Rs 40,440 crore) and a portion for interest payments (Rs 53,455 crore).

Regarding debt servicing, the CAG observed an upward trend until 2022-23, followed by a decline up to 2024-25. “However, all public debt receipts were directed towards debt servicing,” the auditor remarked. The Gross Capital expenditure for 2024-25 fell short by Rs 56,590 crore compared to the Budget Provision, primarily due to a lack of capital outlay (Rs 39,265 crore).

Moreover, the CAG criticized the state government for its hurried spending in the last month of the financial year, referencing the Bombay Financial Rules, 1959, which stipulate that such rushes should be avoided.

“In contrast, 18 departments incurred expenditures exceeding Rs 100 crore, accounting for more than 25% of total expenditures during March 2025. Notable departments engaging in this rapid spending included Housing (90%); Environment and Climate Change (77%); Planning (65%); Minorities Development (53%); and Tourism and Cultural Affairs (50%),” stated the CAG.

Additionally, to maintain a minimum balance of 5% of outstanding guarantees, which equates to Rs 3,974.35 crore as of March 31, 2025, the government was required to contribute Rs 2,304.96 crore during 2024-25, but only Rs 430.74 crore was contributed, leading to an understatement of revenue expenditure.