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flag Indian states' fixed spending surged, straining budgets and limiting new investments.

flag A Comptroller and Auditor General report released on September 21, 2025, shows that Indian states' committed spending on salaries, pensions, and interest rose 2.49 times from 2013-14 to 2022-23, reaching ₹1.56 trillion. flag These fixed expenses made up over 83% of total revenue expenditure, which totaled ₹3.60 trillion in 2022-23, or 13.85% of combined state GDP. flag Subsidies more than tripled, and interest payments surpassed pensions in nine states, indicating growing debt burdens. flag Of 17 states aiming for revenue surpluses, only 12 achieved them, while five ended in deficit, with nine receiving Finance Commission grants. flag The report, the first comprehensive review by the CAG, highlights increasing fiscal strain from rising fixed obligations limiting room for new spending.

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