Guwahati, November 30, 2025 – The Comptroller and Auditor General of India (CAG) has delivered a critical assessment of the Assam government’s finances for the fiscal year 2023-24, describing the state’s budgetary assumptions as “unrealistic and overestimated.” The audit, presented in the Assam Assembly on Saturday, also raised concerns over excessive supplementary grants, poor financial management, and delays in submission of Utilisation Certificates (UCs) and annual accounts by autonomous councils and public sector units.

The CAG’s report comes amid ongoing scrutiny of state finances, highlighting structural inefficiencies and a pattern of overestimation in resource mobilisation that has persisted over several years. According to the report, the Assam government approved grants and appropriations totaling ₹1,69,966.13 crore for 2023-24. However, actual expenditure amounted to ₹1,39,449.66 crore, leaving overall savings of ₹30,516.47 crore, which represented nearly 18 percent (17.95%) of the total grants and appropriations.

Unrealistic Budgetary Assumptions

The report emphasised that the savings were largely notional, as the state’s actual receipts were ₹1,38,830.79 crore against an estimated ₹1,65,215.70 crore. In other words, the funds were simply not available to spend. While savings may, on paper, suggest prudent financial management, the CAG noted that the meager surrender of funds — only 0.35 percent of total savings — deprived other departments of the opportunity to use the unutilised resources. This pointed to “poor financial management” within the government, according to the auditors.

The CAG stressed that the Assam government must formulate a realistic budget grounded in reliable assumptions about resource mobilisation, departmental needs, and the capacity of departments to utilise allocated funds. Inflated or overestimated budgeting, the auditors noted, not only distorts financial planning but also impacts governance by misrepresenting the availability of resources for actual expenditure.

Excessive Supplementary Grants

One of the key findings of the CAG report was the excessive approval of supplementary grants. For the fiscal year 2023-24, the state legislature approved supplementary grants amounting to ₹30,210.86 crore. However, audit analysis revealed that only 74.19 percent of these grants were actually required. The remaining portion was essentially redundant, highlighting inefficiencies in budgetary planning and execution.

“Seeking supplementary grants without an actual requirement is indicative of poor budgetary management by the state government,” the report said. It further noted that such practices reflect a lack of allocative efficiency and utilisation efficiency among departments. While some departments incurred excess expenditure, others had unspent allocations, indicating an imbalance in how resources were planned and deployed.

The CAG recommended that the Finance Department review departments with persistent savings and calibrate future budget allocations based on actual utilisation capacity. Doing so would enhance the effectiveness of resource deployment and reduce the need for unnecessary supplementary grants.

Delayed Submission of Utilisation Certificates and Annual Accounts

The report also highlighted long-standing administrative gaps in compliance and accountability. From 2005-06 to 2022-23, a total of 6,335 Utilisation Certificates aggregating ₹18,669.55 crore were not submitted. In the absence of these UCs, auditors could not verify whether the funds provided to departments, autonomous councils, and other bodies were used for the intended purposes.

Similarly, the CAG pointed out delays in the submission of annual accounts. As of March 31, 2024, 485 annual accounts from 75 autonomous councils, development councils, and other government bodies, as well as 245 annual accounts from 39 public sector undertakings (PSUs), were still pending submission for audit.

The auditors noted that the non-submission of UCs and annual accounts severely impacted effective budgetary management and diluted accountability. Without timely and accurate financial reporting, it becomes difficult for both the government and external oversight bodies to track expenditure, identify inefficiencies, and take corrective action.

Implications for Governance and Fiscal Management

The CAG report paints a picture of persistent structural and procedural weaknesses in Assam’s fiscal management. Overestimated budgets, unnecessary supplementary grants, and delays in documentation collectively indicate systemic issues that could affect public service delivery and long-term fiscal health.

Inflated budget assumptions may also lead to misallocation of resources, as departments anticipate more funding than is actually available. In practice, this can result in delays or interruptions in essential programs, undermining public confidence and governance effectiveness. Furthermore, excessive reliance on supplementary grants reduces the predictability of the budget and complicates fiscal planning.

The report also highlights that despite the large notional savings, very little of these funds were surrendered or reallocated. This has a direct impact on allocative efficiency, as other departments with pressing requirements are deprived of resources that remain locked in unspent allocations.

Recommendations by the CAG

In its recommendations, the CAG urged the Assam government to adopt a more realistic and disciplined approach to budgeting. Key suggestions included:

1. Formulating realistic budgets based on reliable estimates of resources and departmental capacity to spend, avoiding inflated figures that do not match actual financial capabilities.
2. Reviewing departments with persistent savings to ensure that future allocations are based on historical utilisation patterns and realistic assessment of needs.
3. Monitoring utilisation of supplementary grants to ensure that additional allocations are genuinely required and used effectively.
4. Timely submission of Utilisation Certificates and annual accounts to maintain transparency, accountability, and audit compliance.
5. Ensuring allocative and utilisation efficiency, where resources are directed towards areas of genuine need and expenditure is monitored closely to avoid surpluses or deficits.

Broader Context

The CAG’s audit report on Assam’s finances for 2023-24 is part of a larger effort to ensure fiscal accountability across Indian states. Over the years, several states have faced criticism for overly optimistic revenue projections and underutilisation of allocated funds. The Assam report serves as a reminder of the importance of realistic financial planning, timely reporting, and rigorous oversight to maintain fiscal discipline.

By highlighting both the scale of supplementary grants and the issue of unsubmitted UCs, the report underscores the need for a comprehensive financial management framework. Such a framework would not only ensure that public funds are used efficiently but also bolster confidence among citizens and investors in the state’s governance.

Conclusion

The CAG report’s findings present a clear warning to the Assam government about the consequences of unrealistic budgeting, poor fiscal planning, and delayed reporting. With overall savings of nearly ₹30,500 crore largely unrealised, and supplementary grants exceeding actual requirements, the report highlights gaps that must be addressed to improve financial accountability.

Effective implementation of the CAG’s recommendations — including realistic budget formulation, timely submission of accounts, and monitoring of supplementary grants — will be crucial for Assam to achieve better budgetary discipline and efficient public service delivery. As fiscal pressures continue to grow across states in India, the emphasis on transparent and efficient financial management becomes increasingly critical, not just for administrative efficiency but for sustainable development and public trust.

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