CAG: Union Govt Liabilities Soar in FY25 Due to Public Debt Surge

• Union government liabilities increased in FY25, primarily driven by a rise in public debt, as per a CAG report.
• Internal debt grew by 8.35% and external debt by 9.83% compared to FY24, with internal debt reaching Rs 1,59,25,949 crore.
• Repayment of debt constituted 62.57% of the total outgo from the Consolidated Fund of India in FY25.
• Revenue deficit (1.78% of GDP) and fiscal deficit (4.62% of GDP) both declined, indicating prudent fiscal management.
• CAG noted irregularities in CGEGIS accounting, misclassification of Rs 12,754.47 crore, and injudicious re-appropriations.

Key Questions Answered

How will increased public debt impact India's economy?

Increased public debt led to a rise in the Union government's overall liabilities in FY25. Internal and external debt grew by 8.35% and 9.83% respectively.

What steps can the government take to reduce liabilities?

The government can reduce liabilities by addressing irregularities in accounting schemes like CGEGIS, and by controlling expenditure, especially capital expenditure and welfare schemes.

Could accounting irregularities affect public trust?

Accounting irregularities can erode public trust, as indicated by concerns over financial management and accountability.