Uttar Pradesh — what the CAG audit found

Financial audit · State finances

This is the CAG’s annual report on the finances of the whole State. It analyses the State Government’s own accounts for the year — what came in, what was spent, the deficit, the debt and how closely spending followed the budget. It is not a compliance audit (were the rules followed in a particular department?) or a performance audit (did a scheme meet its goals?); the CAG publishes those as separate reports.

“Finance Accounts and Appropriation Accounts of the State together with the Budget document of the State constitute the core data for this Report.” — Uttar Pradesh report, p. 26

1. Revenue surplus vs FRBM target

   Report p. 15

   The State recorded a revenue surplus of about ₹36,013 crore in 2023-24 against the FRBM target of nil revenue deficit, lower than the ₹68,512 crore projected in its medium-term policy.

   “In 2023-24, the State has registered revenue surplus of ₹ 36,013.28 crore against target of nil revenue deficit under FRBM Act.” — CAG report

2. Subsidies

   Report p. 15

   Subsidies rose from ₹14,092 crore in 2019-20 to ₹24,736 crore in 2023-24, with power subsidies forming 52 to 68 per cent of the total.

   “subsidies, which increased from ₹ 14,092 crore in 2019-20 to ₹ 24,736 crore in 2023-24” — CAG report

3. Committed expenditure

   Report p. 14

   Interest, salaries and pensions took 56 to 62 per cent of revenue expenditure over 2019-24; with inflexible items, 71 per cent of revenue expenditure in 2023-24, limiting room for other priorities.

   “Committed expenditure on interest payments, salaries and pensions constituted 56 to 62 per cent of revenue expenditure” — CAG report

4. Extra-budget borrowings

   Report p. 127

   Outstanding borrowings routed through State-owned entities outside the Consolidated Fund were ₹38,464.14 crore at 31 March 2024; including them, liabilities were 31.09 per cent of GSDP against 29.58 per cent.

   “the outstanding extra budget borrowing of the State Government was ₹ 38,464.14 crore as on 31 March 2024” — CAG report

5. Guarantees

   Report p. 97

   Outstanding guarantees fell 4.32 per cent to ₹1,63,399.82 crore, equal to 6.41 per cent of GSDP, mostly for three power sector companies; no guarantee was invoked.

   “The outstanding guarantees decreased by 4.32 per cent from ₹1,70,780.52 crore in the year 2022-23 to ₹ 1,63,399.82 crore in the year 2023-24.” — CAG report

6. Debt sustainability

   Report p. 16

   Public debt-GSDP ratio rose from 24.50 to 26.18 per cent over five years; the audit says debt-to-GSDP has fluctuated so it is early to conclude that debt is stabilising.

   “Debt/GSDP ratio in the past five years remained fluctuating and thus, it is early to conclude that debt is on the path of stabilisation.” — CAG report

7. Debt stock target

   Report p. 34

   Total outstanding debt was 29.58 per cent of GSDP, within the Finance Commission indicative limit of 40.20 per cent, though the State Act sets no debt-stock target for recent years.

   “the ratio of total outstanding debt to GSDP (29.58 per cent) was within the limit (40.20 per cent of GSDP) recommended by 15th Finance Commission” — CAG report

   State Government’s reply, as recorded: In October 2024 the State Government informed that action to fix debt-stock-to-GSDP targets would follow Government of India directions on the Fifteenth Finance Commission fiscal road map.

8. Capital spending shortfall

   Report p. 16

   Capital expenditure fell 29.99 per cent short of the budget estimate in 2023-24, while capital spending was ₹1,10,555 crore, about 75 per cent of the budgeted amount.

   “In the Capital section, deviation in outturn compared with BE was (-) 29.99 per cent.” — CAG report

9. Savings and surrenders

   Report p. 121

   Of ₹1,78,373.98 crore of savings, ₹44,104.54 crore was surrendered, almost all on the last day of the financial year, and about 75 per cent was not surrendered.

   “Remaining savings of ` 1,34,269.44 crore (75.27 per cent) was not surrendered.” — CAG report

10. Unnecessary supplementary grants

    Report p. 118

    Supplementary provisions of ₹3,312.20 crore in 72 cases proved unnecessary because spending did not reach even the original provision.

    “Supplementary provisions (₹ 1.00 crore or more in each case) made in 72 cases of 37 Grants amounting to ₹ 3,312.20 crore proved unnecessary” — CAG report

11. Excess expenditure over grants

    Report p. 110

    Excess disbursements of ₹32,533.56 crore over grants and appropriations from 2005-06 to 2023-24 had not yet been regularised by the State Legislature.

    “Excess disbursements amounting to ` 32,533.56 crore under 104 grants and 49 appropriations pertaining to the years 2005-06 to 2023-24” — CAG report

12. Pending utilisation certificates

    Report p. 132

    17,963 utilisation certificates worth ₹11,872.95 crore were outstanding at 31 March 2024 for grants released from 2001-02 to September 2022.

    “17,963 UCs aggregating ₹ 11,872.95 crore were outstanding as on 31 March 2024” — CAG report

13. Unspent central scheme funds with nodal agencies

    Report p. 18

    Funds transferred to Single Nodal Agencies for centrally sponsored schemes left ₹19,478.31 crore unspent in bank accounts outside the Government account at 31 March 2024.

    “₹ 19,478.31 crore is lying unspent in the bank accounts of SNAs as on 31 March 2024.” — CAG report

14. Delayed accounts of autonomous bodies

    Report p. 144

    388 annual accounts of 56 autonomous bodies and authorities due for audit had not been submitted as of 31 July 2024.

    “388 annual accounts of 56 Autonomous Bodies and Authorities (due up to 2023-24) for audit as on 31 July 2024 have not been submitted” — CAG report