States' salary bills balloon 2.5 times in 10 yrs: CAG

THE salary bills of states have ballooned 2.5 times in the 10 years to 2022-23, reaching ₹16.6 lakh crore, while subsidy bills have more than trebled to ₹3.09 lakh crore, according to a report published by the Comptroller and Auditor General (CAG) of India.

- DIPAK MONDAL @ New Delhi

The State Finances Publication 2025 further shows that public debt raised by states grew 3.4 times over the same period to ₹59.6 lakh crore.

In FY 2022-23, states' committed expenditure on salaries, interest payments, and pensions constituted a significant portion of their finances, accounting for about 43.49% of total revenue expenditure. Salaries formed the largest component of this spending.

Expenditure on salaries, pensions, and interest payments as a percentage of revenue expenditure varied widely-from as high as 74% in Nagaland to 32% in Maharashtra. In 2022-23,

15 states reported committed expenditure exceeding 50% of their revenue expenditure, seven states between 40-50%, and six states below 40%.