The latest Comptroller and Auditor General (CAG) report on state finances for 2024-25 has exposed a stark fiscal disparity in Assam. The state government has invested a staggering ₹10,903 crore across 31 State Public Sector Enterprises (SPSEs). However, these investments yielded a dismal return of just 0.11%. Out of the 31 enterprises—which include 27 government companies and four statutory corporations—only the Assam Power Generation Corporation Limited managed to register a profit, generating a modest ₹15 crore.
This minimal return becomes deeply concerning when contrasted with the state’s borrowing patterns. The CAG highlighted that while Assam’s public enterprises are failing to generate revenue, the government has been borrowing capital at an average interest rate of 6.76%. Essentially, the state is spending significantly more to service its mounting debt than its own commercial entities are earning.
This financial strain comes at a time when Assam’s Gross State Domestic Product (GSDP) is otherwise thriving, growing at an annual average of 18% to reach ₹6,43,667 crore. Capital expenditure has also more than doubled over five years. However, the CAG’s analysis warns that this growth is being undermined by rigid liabilities. Pension expenditures have climbed to 19.37% of revenue receipts, and interest payments have risen to 9.77%. With the fiscal space shrinking, the state faces a hard reality of aggressive borrowing tied to non-performing public assets. The report has now been referred to the Public Accounts Committee for urgent review.
