State Finances Audit Report for the year ended 31 March 2024, Himachal Pradesh

CAG's audit of Himachal's finances for 2023-24. Debt, fiscal deficit and revenue deficit all breached the state's own FRBM targets; committed spending on interest, salaries and pensions took most of revenue expenditure; and the report concludes in its own words that the state's finances are heavily stressed.

State: Himachal Pradesh
Audit period: 1 Apr 2023 — 31 Mar 2024
Presented: 29 Aug 2025

Findings

Debt reached 43.98 per cent of GSDP against an FRBM target of 38.98 per cent; the fiscal deficit was 5.43 per cent against a 3.5 per cent target; and the state ran a revenue deficit of 2.68 per cent of GSDP where the target was a surplus.
“In 2023-24, the percentage of Revenue Deficit to GSDP was 2.68 per cent as against the target of being Revenue Surplus; Fiscal Deficit/GSDP was 5.43 per cent as against the target of 3.5 per cent; Debt/GSDP was 43.98 per cent as against the target of 38.98 per cent.”Executive Summary
Committed expenditure — interest, salaries and pensions — took 64 to 70 per cent of revenue expenditure over 2019-24, rising from ₹21,466 crore to ₹30,213.59 crore. With inflexible expenditure added it was ₹32,262.37 crore in 2023-24, or 72.12 per cent of revenue expenditure.
“Committed expenditure on interest payments, salaries and pensions constituted 64-70 per cent of Revenue expenditure between 2019-20 and 2023-2024... Taken together, committed and inflexible expenditure in 2023-24 was ₹ 32,262.37 crore; 72.12 per cent of the Revenue expenditure.”Executive Summary
The state reverted to the Old Pension Scheme with effect from 1 April 2023; the report flags the resulting burden as something to be reckoned with in assessing debt sustainability.
“The State Government had also notified and reverted to the Old Pension Scheme (OPS) with effect from 01.04.2023. The imminent financial burden on account of implementation of OPS, in coming years, also needs to be reckoned while assessing debt sustainability of the State.”Executive Summary

Findings

Debt reached 43.98 per cent of GSDP against an FRBM target of 38.98 per cent; the fiscal deficit was 5.43 per cent against a 3.5 per cent target; and the state ran a revenue deficit of 2.68 per cent of GSDP where the target was a surplus.

“In 2023-24, the percentage of Revenue Deficit to GSDP was 2.68 per cent as against the target of being Revenue Surplus; Fiscal Deficit/GSDP was 5.43 per cent as against the target of 3.5 per cent; Debt/GSDP was 43.98 per cent as against the target of 38.98 per cent.”Executive Summary

Committed expenditure — interest, salaries and pensions — took 64 to 70 per cent of revenue expenditure over 2019-24, rising from ₹21,466 crore to ₹30,213.59 crore. With inflexible expenditure added it was ₹32,262.37 crore in 2023-24, or 72.12 per cent of revenue expenditure.

“Committed expenditure on interest payments, salaries and pensions constituted 64-70 per cent of Revenue expenditure between 2019-20 and 2023-2024... Taken together, committed and inflexible expenditure in 2023-24 was ₹ 32,262.37 crore; 72.12 per cent of the Revenue expenditure.”Executive Summary

The state reverted to the Old Pension Scheme with effect from 1 April 2023; the report flags the resulting burden as something to be reckoned with in assessing debt sustainability.

“The State Government had also notified and reverted to the Old Pension Scheme (OPS) with effect from 01.04.2023. The imminent financial burden on account of implementation of OPS, in coming years, also needs to be reckoned while assessing debt sustainability of the State.”Executive Summary