Key Highlights of the CAG Review:
The Comptroller and Auditor General (CAG) presented its 2023-24 annual review of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, in Parliament.
- The review shows that India is moving steadily towards long-term macroeconomic stability.
- Key Highlights of the CAG Review of the FRBM Act for FY 2023-24:
- Central Government Debt: Declined to 57% of Gross Domestic Product (GDP) (March 2024) from 61.38% in FY 2020-21.
- General Government Debt (GGD): GGD declined slightly from 83% of GDP in March 2022 to 81.3% in March 2023, still far above the 60% target.
- Debt Sustainability Analysis (DSA): DSA assesses the government’s ability to service debt, with the debt-to-GDP ratio as the key measure.
- A sustainable fiscal policy is one where the debt-to-GDP ratio is stable or declining over the long term.
- The Centre’s debt-to-GDP ratio peaked at 61.38% in FY 2020-21 and declined to 57% in FY 2023-24.
- Unrealised Taxes: At the end of FY 2023-24, Rs 31.11 lakh crore in taxes remained unrealised, up Rs 9.81 lakh crore from the 2022-23.
