Debt grows slower than GDP, CAG says; revenue lapses persist

Central government debt's growth has slowed compared to the expansion of India's GDP, according to an audit report by the Comptroller and Auditor General (CAG). The report analyzed the fiscal years 2022-2023 and 2023-2024 (FY23 and FY25). The CAG stated that the central government's ability to service its debt has remained positive during this period. This suggests that the Indian economy has grown sufficiently to absorb and manage the accumulated debt.

However, the report also exposed significant irregularities and lapses in various government schemes. Under the export incentive scheme, the CAG identified irregularities amounting to ₹603 crore. This included ₹472.69 crore in inadmissible benefits under the Rebate of State and Central Taxes and Levies scheme and ₹130.39 crore from system failures in issuing scheme scrips.

The audit further highlighted recurring issues in the government's tax dispute scheme, Vivaad se Vishwas. The CAG found systematic lapses in tax calculations, leading to revenue loss and prolonged delays in settling cases. Specifically, the tax department failed to withdraw interest paid to taxpayers in 55 cases involving ₹1,168.27 crore, resulting in a revenue loss. This information was submitted to Parliament as part of the audit report.