CAG Highlights Key Trends in State Expenditure and Subsidies

The latest CAG report has revealed that a significant portion of expenditure in several Indian states is being spent on employee salaries and pensions. According to the report, in six states, more than 25 percent of annual government expenditure is allocated to employee salaries. Gujarat recorded the lowest salary expenditure in the country at 6.25 percent of total spending, while Telangana allocated around 14 percent towards salaries.

The report also highlighted variations in pension and subsidy expenditures among states. Telangana spent 7.7 percent of its expenditure on pensions, whereas Chhattisgarh reported the lowest pension expenditure at 6 percent. In terms of subsidies, Karnataka topped the list, allocating nearly 14 percent of its total expenditure to subsidies. Telangana's subsidy spending was nearly half that of Karnataka, reflecting a comparatively lower subsidy burden on the state's finances.