NEW DELHI: Karnataka, Madhya Pradesh, Tamil Nadu and Punjab have emerged as the largest dole givers, with subsidies accounting for over 13.5% of their complete expenditure in 2024-25, Comptroller & Auditor Common has stated in its newest report on state funds.In absolute phrases, subsidies provided by states have jumped threefold, with 28 of them spending practically Rs 4.4 lakh crore in 2024-25, in contrast with 1.4 lakh crore in 2015-16. Throughout this era, their complete expenditure rose 2.3 instances.As a proportion of income spending, subsidies elevated from 1.1% to 1.4%, the report identified. Equally, as a share of state GDP, it rose to 10.2% in FY 25, in contrast with 7.7% in FY16.
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The numbers point out that in FY25, as increasingly more states, no matter political affiliation, handed out direct money transfers, the share of subsidies in income expenditure went into double digits for the primary time.The CAG report is, nevertheless, silent on money transfers, which have emerged because the go-to choice in each meeting in addition to normal election, with events promising direct fund transfers to girls, farmers and different teams.The federal auditor’s information confirmed that vitality – largely energy subsidies – accounted for 43% of the subsidy funds in FY25, adopted by 30% for agriculture, comprising worth help, arrear waivers, fertiliser and seeds.Rajasthan provided the best subsidy for energy – in absolute and proportion phrases – adopted by Karnataka. Maharashtra, Tamil Nadu, Karnataka, MP and Rajasthan accounted for Rs 2.3 lakh crore or 54% of the state subsidies. Six states spent over 10% on subsidies, whereas an equal quantity spent underneath 1%.Six states within the North-East – Arunachal Pradesh, Sikkim, Nagaland, Meghalaya, Tripura and Assam – had been at lower than 1% when it got here to subsidies as a proportion of their expenditure. Kerala, Mizoram, Uttarakhand, Mizoram and Manipur spent underneath 2% on subsidies.“The comparatively low subsidy ranges in these states is attributable to smaller client bases, and restricted ind-ustrial and irrigation exercise. In these states, subsidies are primarily dir-ected in direction of transport, meals, and social-sector help somewhat than en-ergy or agriculture,” the report stated.
