CAG Report Highlights Rising Fiscal Stress and Debt Concerns in Punjab

The Comptroller and Auditor General (CAG) report on Punjab's 2023-24 finances highlights rising fiscal stress due to increasing debt, deficits, and liabilities. Despite revenue growth, expenditure outpaced receipts, leading to growing revenue and fiscal deficits. The debt-to-GSDP ratio rose, raising concerns about debt sustainability. The report warns that reliance on economic growth alone is insufficient to manage debt and urges expenditure rationalization, revenue expansion, and investment in revenue-generating assets to improve fiscal health.