Gujarat’s 2023–24 finances show a revenue surplus of ?33,477 crore and a fiscal deficit within FRBM limits. But ABC Live’s performance audit reveals that this stability is more cosmetic than real. The surplus is overstated by ?7,480 crore, the true deficit closer to ?31,000 crore, and subsidies have climbed to ?28,033 crore. With ?11,869 crore in pending utilisation certificates, ?289 crore in unadjusted bills, and ?12,782 crore parked outside the treasury, Gujarat’s fiscal story is one of stability on paper, fragility in practice.
New Delhi (ABC Live): Gujarat is often presented as India’s fiscal role model: fast GSDP growth, buoyant revenues, and fiscal discipline within FRBM limits. The CAG’s State Finances Audit Report (2023–24), tabled as Report No. 1 of 2025, seems to support this image.
But fiscal prudence is not only about compliance — it is about credibility and accountability. That is why ABC Live publishes this Performance Audit, showing where we agree with the CAG and where we diverge sharply. Our unique role is to move beyond technical reporting and interpret fiscal numbers through a lens of citizen impact, political economy, and transparency.
Performance Audit Dashboard — CAG vs ABC Live
| Dimension | CAG’s Finding (2023–24) | ABC Live’s Interpretation | Audit Flag |
|---|---|---|---|
| Revenue Surplus | ?33,477 cr (1.36% GSDP), overstated by ?7,480 cr. | Cosmetic surplus — true balance closer to ?26,000 cr. | ? |
| Fiscal Deficit | ?23,493 cr (0.95% GSDP), within FRBM limits. | Legally compliant, not credible. Adjusted deficit ~?31,000 cr. | ? |
| Debt–GSDP Ratio | 14.31%, below ceiling (27.1%). | Sustainable, but excludes ~?22,000 cr GST loans. | ?/? |
| Budgetary Control | ?2,414 cr unnecessary provisions; ?12,002 cr excess pending since 2009. | Crisis of legislative control over the purse. | ? |
| Utilisation Certificates | 4,745 pending (?11,869 cr). | Collapse of accountability. | ? |
| Contingent Bills | 2,981 pending (?289 cr). | Misappropriation risk. | ? |
| Subsidies | ?28,033 cr (14.8% RE), ?11,706 cr to agriculture. | Subsidy trap, crowding out development. | ? |
| Funds Outside Treasury | ?5,040 cr in PD; ?7,742 cr idle in SNA accounts. | Fiscal window dressing. | ? |
| Accounting Standards | Partial IGAS compliance. | Deliberate opacity. | ? |
Where CAG and ABC Live Agree
On several fundamentals, we and the CAG converge:
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Gujarat enjoys macro stability — a low debt ratio and manageable fiscal deficit.
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Budget credibility is weak — excess expenditure and avoidable provisions undermine fiscal discipline.
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Accountability failures are chronic — crores remain unverified in pending UCs and contingent bills.
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Subsidies are rising unsustainably — subsidies now absorb 15% of revenue expenditure.
Where ABC Live Differs
But where the CAG uses cautious phrasing, ABC Live provides sharper judgment:
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Revenue Surplus: CAG says overstated; ABC Live calls it cosmetic and misleading.
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Fiscal Deficit: CAG stresses FRBM compliance; ABC Live says compliance ? credibility — true deficit understated.
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Debt: CAG calls it sustainable; ABC Live agrees but adds that hidden GST loans distort the picture.
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Funds Management: CAG flags risks; ABC Live calls it window dressing — inflating surplus by parking funds off-budget.
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Accountability: CAG calls pending UCs/AC bills a risk; ABC Live calls it a collapse of accountability.
Gujarat Finances: 5-Year Trend (2019–20 to 2023–24)
| Indicator | 2019–20 | 2020–21 (COVID) | 2021–22 | 2022–23 | 2023–24 | ABC Live Reading |
|---|---|---|---|---|---|---|
| GSDP Growth | 10.3% | -0.5% | 13.4% | 12.3% | 10.5% | Gujarat consistently outpaces national GDP. |
| Revenue Surplus (+)/Deficit (-) | +?8,315 cr | -?6,201 cr | +?11,029 cr | +?25,763 cr | +?33,477 cr (overstated) | Rising surpluses, but 2023–24 is cosmetic. |
| Fiscal Deficit | ?24,581 cr (1.52%) | ?36,326 cr (2.41%) | ?21,849 cr (1.28%) | ?20,102 cr (0.83%) | ?23,493 cr (0.95%; ~?31,000 cr true) | Deficit understated in 2023–24. |
| Debt–GSDP Ratio | 19.7% | 21.6% | 18.2% | 16.2% | 14.3% | Declining, but excludes off-book liabilities. |
| Subsidies | ?18,420 cr (13%) | ?21,738 cr (13.8%) | ?23,515 cr (14.2%) | ?25,312 cr (14.3%) | ?28,033 cr (14.8%) | Clear subsidy trap. |
| Capital Expenditure | ?27,213 cr | ?24,685 cr | ?31,405 cr | ?30,106 cr | ?47,206 cr | 56.8% jump in 2023–24; positive. |
| Pending UCs | ~?8,000 cr | ~?9,400 cr | ~?10,200 cr | ~?11,200 cr | ?11,869 cr | Worsening backlog. |
| Funds in PD/SNA | ?1,123 cr | ?1,857 cr | ?2,990 cr | ?4,381 cr | ?12,782 cr | Exploding — systemic fund parking. |
Why This Report is Unique from the CAG Audit
The CAG gives facts in neutral tones; ABC Live delivers judgment in public-interest language.
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CAG highlights overstatements; ABC Live names them cosmetic surpluses.
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CAG records compliance; ABC Live tests credibility.
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CAG notes idle funds; ABC Live calls it fiscal window dressing.
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CAG mentions risks; ABC Live calls them systemic failures.
? CAG provides evidence. ABC Live provides accountability.
Why This Matters for Citizens
For citizens, these gaps matter directly:
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A paper surplus means less money for schools, hospitals, or welfare.
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Idle funds in PD/SNA accounts mean money remains unused.
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A subsidy trap eats away at long-term growth investment.
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Pending UCs mean taxpayers cannot be sure their money reached its purpose.
Editor’s Note
At ABC Live, audits are not mere technical reports. They are mirrors of governance. The CAG’s role is to collect evidence; our role is to interpret it, sharpen it, and hold governments accountable.
This Performance Audit shows Gujarat is stable in appearance but fragile in substance. Macro stability masks micro-level fragility. Citizens deserve fiscal truth, not fiscal cosmetics.
ABC Live Verdict Box
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Macro-stable, Micro-fragile: Debt and deficit look sound, but credibility is undermined by cosmetic accounting.
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Accountability Collapse: ?11,869 cr in pending UCs and ?289 cr in unadjusted bills reveal systemic neglect.
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Cosmetic Prudence: Idle funds and rising subsidies turn fiscal discipline into window dressing.
Conclusion
The CAG confirms Gujarat’s macro stability, but ABC Live shows that stability is cosmetic, not credible. Surpluses are overstated, deficits understated, subsidies spiralling, and accountability gaps widening.
The challenge for Gujarat is not in raising revenues but in ensuring fiscal credibility, transparency, and service to citizens. Until then, its fiscal story remains stable on paper, fragile in practice.
References (Exact Links)
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Comptroller and Auditor General of India, State Finances Audit Report of Gujarat for the year ended 31 March 2024, Report No. 1 of 2025. Link to Report PDF on CAG site
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Gujarat Fiscal Responsibility Act, 2005 – Full Text (Gujarat Law)
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Ministry of Finance, FRBM Act and Rules – FRBM Framework, MoF India
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RBI, State Finances Study of Budgets 2024–25 (for comparative debt and deficit trends). RBI State Finances Report
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PIB, Union Finance Accounts 2023–24 (FRBM Targets). PIB Finance Accounts Release
