The report of the Comptroller and Auditor General (CAG) of India on Maharashtra State finances for the year 2023-24 has Said that “Off-Budget Browings” Fiscal Transparent. Issuing a warning that off-buddget browings records the public liabilities of the state substantially over a period of time, leading to a debt-drant, it has been made of maharashtra government Legislative Control to Ensure Sustainable Financial Management.
“Financing Expenditures Through Off-Buddget Browings Accreases The Public Liabilities of the State Substantically over a Period of Time Leading To a Debt-Praps, Without the Legislature Eve Knowlities Liabilities. Created, “The report said.
“Government of Maharastra’s increasing use of off-buddget broowings not only affects fiscal transparent but also Risks Circumventing Budgetary Controls and Legislative Ovperogue. Improve its fiscal accountability by all liabilities are reported in the unnual finance statements, these Afget browns should be browhhhht. Control to ensure Sustainable Financial Management, “Said the Report.
Off-buddget Items are government browings and expenditures that do not get reflected in the government budget.
The observations of the cag hold importance at a time when the maharashtra government has been relying on raising obb. In an exclusive interview with the Indian express in april 2025, Maharashtra Chief Minister Devendra Fadnavis’ Chief Economic Advisor (CE) Praveen Pardeshi Had Said Said Said Said Said Said This State Government has Decided to Fundal. Expenditure through off-buddget source of funding and has planned to raise and spend around Rs 30,000 crore on Several key projects.
The report maintained that “All Government Browings and Expenditure should legitimately be covered with the Respective Budgets and the Governance Must Instality Through Various Agencies of the State Government in the Budget and Accounts.
The cag report said that the off-buddget brorowing allows the government to meet its expenditure requestout recording these debts in the budget, theareby Bypassing Legislative Scruutiny. “Such Browings are of the raised through state-yogen or state-consololled entities, with the subjects ultimately covered by the state government’s buddle. These browings, whichever burrowings, whichever budet. Are effectively considering as the state’s own liabilities under article 293 (3) of the constitution, ”it said.
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The cag report pointed out that as outlined in the maharastra fiscal responsibility and budget management (Mfrbm) act and the rules (2006, amended in 2008), Including off-buddget in form B-6 of the Medium-Term Fiscal Policy Statement (MTFPS) of that participular year.
“However, Audit has observed that despite the request for transparent, off-buddget brorowings were not disclosed in the budget documents. Off-buddget borrowing of Rs 19.40 Crore only (outstanding prior to 2004-05), ”it said.
The outstanding off-buddget broadget significantly from Rs 51 crore in 2019-20 to Rs 10,135 croore by the end of 2023-24, indicating the institute in the state’s reliance on off-buddle barrowing. Capital expenditures.