State Finances Audit Report of the Government of West Bengal for the year ended March 2025

The audit of West Bengal's finances for 2024-25, covering deficits and liabilities, revenue receipts and expenditure, budgetary management, transfers to single nodal agencies, outstanding utilisation certificates and unadjusted contingent bills, with a ten-year trend analysis from 2015-16.

State: West Bengal
Audit period: 1 Apr 2024 — 31 Mar 2025
Presented: 25 Jul 2026

Findings

Total liabilities reached 38.66 per cent of GSDP in 2024-25, breaching the 38.00 per cent target set by the state's fiscal responsibility law, though the fiscal deficit of 3.41 per cent stayed within its 3.50 per cent limit.
“During FY 2024-25, the State recorded a Revenue Deficit of ₹ 39,727 crore (2.19 per cent of GSDP). The Fiscal Deficit of the State was ₹ 61,924 crore (3.41 per cent of GSDP), which was within the FRBM target of 3.50 per cent of GSDP. Total liabilities stood at 38.66 per cent of GSDP in 2024-25, breaching the FRBM target of 38.00 per cent.”Executive Summary
West Bengal recorded a revenue deficit in every one of the ten years from 2015-16 to 2024-25, as revenue expenditure grew faster than revenue receipts and the fiscal deficit expanded at 12.83 per cent a year.
“Ten year trend analysis, covering the period from 2015-16 to 2024-25, of major fiscal and economic parameters of the State showed that Revenue Expenditure increased at a faster pace (CAGR of 8.78 per cent) vis-a-vis Revenue Receipts (CAGR of 7.69 per cent). Consequently, the State incurred Revenue Deficits throughout the period from 2015-16 to 2024-25. During this decade, Fiscal Deficit also expanded sharply at a CAGR of about 12.83 per cent leading to greater dependence on borrowings.”Executive Summary
In 2024-25, 41 per cent of revenue expenditure was met from net borrowing, and committed expenditure of ₹1,39,202 crore plus subsidy of ₹19,444 crore absorbed nearly 74 per cent of revenue receipts, leaving 26 per cent for development and capital spending.
“It was noted that in FY 2024-25, 41 per cent of the revenue expenditure was met from net borrowings adding to future liabilities... The committed expenditure (` 1,39,202 crore) coupled with Subsidy expenditure (₹ 19,444 crore) absorbed nearly 74 per cent of Revenue Receipts of West Bengal in FY 2024-25 leaving only 26 per cent fiscal space for developmental and capital spending.”Executive Summary
Capital expenditure fell 25 per cent to ₹21,622 crore — 1.19 per cent of GSDP — and even that was inflated, because ₹1,031.84 crore of revenue expenditure was misclassified as capital.
“Capital expenditure (₹ 21,622 crore) during FY 2024-25 constituted only 1.19 per cent the GSDP of the State. In FY 2024-25, it fell by 25 per cent (₹ 7,341 crore) vis-à-vis the previous financial year (₹ 28,963 crore). Audit found that, during FY 2024-25, the State Government misclassified ₹ 1,031.84 crore of expenditure of Revenue nature as Capital Expenditure, which inflated the Capital Expenditure to that extent.”Executive Summary
Excess expenditure of ₹13,486.92 crore under seven grants and one appropriation requires regularisation under Article 205 of the Constitution; unregularised excess from 2009-24 stands at ₹57,263.62 crore.
“Though there was overall savings, during FY 2024-25, excess expenditure of ₹ 13,486.92 crore was incurred under seven grants and one appropriation which requires regularisation as per Article 205 (1) (b) of the Constitution. Such unregularised excess expenditure pertaining to the FYs 2009-24 came to ₹ 57,263.62 crore.”Executive Summary
Cess proceeds of ₹1,809.66 crore credited to the Consolidated Fund were never transferred to the Public Account because the state created no funds to receive them, understating both the revenue and the fiscal deficit.
“Cess proceeds amounting to ₹ 1,809.66 crore, credited to the Consolidated Fund of the State, during FY 2024-25, had not been transferred to the Public Account as the GoWB did not create specific funds to transfer these proceeds. This resulted in understatement of Revenue Deficit, Fiscal Deficit and cumulative liabilities in Public Account.”Executive Summary
Utilisation certificates worth ₹1,35,686 crore were still outstanding at 31 March 2025, down 47 per cent from ₹2,56,106 crore a year earlier.
“As of 31 March 2025, UCs amounting to ₹ 1,35,686 crore were outstanding compared to ₹ 2,56,106 crore in the beginning of FY 2024-25 registering a decline of 47 per cent pointing to positive efforts taken by the Government.”Executive Summary
Supplementary provisions of ₹4,489.31 crore in 16 grants proved unnecessary and ₹5,119.18 crore in 13 grants proved excessive, while overall savings of ₹70,662.25 crore — 18.09 per cent of the budget — went unspent.
“During FY 2024-25, against the total budget provision of ₹ 3,90,638.04 crore, the State incurred an expenditure of ₹ 3,19,975.79 crore, resulting in an overall savings of ₹ 70,662.25 crore (18.09 per cent)... It was noticed that during FY 2024-25, supplementary provisions of ₹ 4,489.31 crore in 16 grants proved unnecessary, as the expenditure did not come up to even the original provisions.”Executive Summary

Findings

Total liabilities reached 38.66 per cent of GSDP in 2024-25, breaching the 38.00 per cent target set by the state's fiscal responsibility law, though the fiscal deficit of 3.41 per cent stayed within its 3.50 per cent limit.

“During FY 2024-25, the State recorded a Revenue Deficit of ₹ 39,727 crore (2.19 per cent of GSDP). The Fiscal Deficit of the State was ₹ 61,924 crore (3.41 per cent of GSDP), which was within the FRBM target of 3.50 per cent of GSDP. Total liabilities stood at 38.66 per cent of GSDP in 2024-25, breaching the FRBM target of 38.00 per cent.”Executive Summary

West Bengal recorded a revenue deficit in every one of the ten years from 2015-16 to 2024-25, as revenue expenditure grew faster than revenue receipts and the fiscal deficit expanded at 12.83 per cent a year.

“Ten year trend analysis, covering the period from 2015-16 to 2024-25, of major fiscal and economic parameters of the State showed that Revenue Expenditure increased at a faster pace (CAGR of 8.78 per cent) vis-a-vis Revenue Receipts (CAGR of 7.69 per cent). Consequently, the State incurred Revenue Deficits throughout the period from 2015-16 to 2024-25. During this decade, Fiscal Deficit also expanded sharply at a CAGR of about 12.83 per cent leading to greater dependence on borrowings.”Executive Summary

In 2024-25, 41 per cent of revenue expenditure was met from net borrowing, and committed expenditure of ₹1,39,202 crore plus subsidy of ₹19,444 crore absorbed nearly 74 per cent of revenue receipts, leaving 26 per cent for development and capital spending.

“It was noted that in FY 2024-25, 41 per cent of the revenue expenditure was met from net borrowings adding to future liabilities... The committed expenditure (` 1,39,202 crore) coupled with Subsidy expenditure (₹ 19,444 crore) absorbed nearly 74 per cent of Revenue Receipts of West Bengal in FY 2024-25 leaving only 26 per cent fiscal space for developmental and capital spending.”Executive Summary

Capital expenditure fell 25 per cent to ₹21,622 crore — 1.19 per cent of GSDP — and even that was inflated, because ₹1,031.84 crore of revenue expenditure was misclassified as capital.

“Capital expenditure (₹ 21,622 crore) during FY 2024-25 constituted only 1.19 per cent the GSDP of the State. In FY 2024-25, it fell by 25 per cent (₹ 7,341 crore) vis-à-vis the previous financial year (₹ 28,963 crore). Audit found that, during FY 2024-25, the State Government misclassified ₹ 1,031.84 crore of expenditure of Revenue nature as Capital Expenditure, which inflated the Capital Expenditure to that extent.”Executive Summary

Excess expenditure of ₹13,486.92 crore under seven grants and one appropriation requires regularisation under Article 205 of the Constitution; unregularised excess from 2009-24 stands at ₹57,263.62 crore.

“Though there was overall savings, during FY 2024-25, excess expenditure of ₹ 13,486.92 crore was incurred under seven grants and one appropriation which requires regularisation as per Article 205 (1) (b) of the Constitution. Such unregularised excess expenditure pertaining to the FYs 2009-24 came to ₹ 57,263.62 crore.”Executive Summary

Cess proceeds of ₹1,809.66 crore credited to the Consolidated Fund were never transferred to the Public Account because the state created no funds to receive them, understating both the revenue and the fiscal deficit.

“Cess proceeds amounting to ₹ 1,809.66 crore, credited to the Consolidated Fund of the State, during FY 2024-25, had not been transferred to the Public Account as the GoWB did not create specific funds to transfer these proceeds. This resulted in understatement of Revenue Deficit, Fiscal Deficit and cumulative liabilities in Public Account.”Executive Summary

Utilisation certificates worth ₹1,35,686 crore were still outstanding at 31 March 2025, down 47 per cent from ₹2,56,106 crore a year earlier.

“As of 31 March 2025, UCs amounting to ₹ 1,35,686 crore were outstanding compared to ₹ 2,56,106 crore in the beginning of FY 2024-25 registering a decline of 47 per cent pointing to positive efforts taken by the Government.”Executive Summary

Supplementary provisions of ₹4,489.31 crore in 16 grants proved unnecessary and ₹5,119.18 crore in 13 grants proved excessive, while overall savings of ₹70,662.25 crore — 18.09 per cent of the budget — went unspent.

“During FY 2024-25, against the total budget provision of ₹ 3,90,638.04 crore, the State incurred an expenditure of ₹ 3,19,975.79 crore, resulting in an overall savings of ₹ 70,662.25 crore (18.09 per cent)... It was noticed that during FY 2024-25, supplementary provisions of ₹ 4,489.31 crore in 16 grants proved unnecessary, as the expenditure did not come up to even the original provisions.”Executive Summary