CAG releases states Finances 2022-23 report

Current Context: The Comptroller and Auditor General (CAG) of India released the report “State Finances – 2022‑23: A Decadal Analysis” on 22 September 2025.

• It reviews the revenue, expenditure, debt, and fiscal position of all 28 states for FY 2022‑23.
• Out of these, 16 states recorded a revenue surplus (highest: Uttar Pradesh – ₹37,263 crore) while 12 states posted a revenue deficit (highest: Andhra Pradesh – ₹43,488 crore).
• Overall, states’ revenue receipts stood at ₹35.13 lakh crore (22.96% of combined GSDP), while total expenditure was ₹42.43 lakh crore.
• The report highlights that 85% of expenditure was revenue in nature, with only 15% capital spending.
• States’ combined debt burden reached ₹59.6 lakh crore (≈23% of GSDP), raising concerns on fiscal sustainability.
• It also noted that Finance Commission grants of ₹1.72 lakh crore were released, half of which were revenue deficit grants.

Question:

Q.1 According to the CAG report “State Finances – 2022-23: A Decadal Analysis”, which state had the highest revenue surplus in FY 2022-23?
a) Maharashtra
b) Uttar Pradesh
c) Tamil Nadu
d) Gujarat

Answer: b) Uttar Pradesh recorded the highest revenue surplus of ₹37,263 crore.