UP, Gujarat, Jharkhand, 10 other States record revenue surplus in FY25: CAG report

📌 Summary:

• Comptroller and Auditor General (CAG) K. Sanjay Murthy released the 'State Finances 2024-25' report on June 16, 2026
• 13 States recorded a revenue surplus in FY 2024-25 (including Uttar Pradesh, Gujarat, Jharkhand, Manipur); the remaining 15 States ran a revenue deficit
• Budget targets vs outcomes: 18 States had targeted a revenue surplus, 3 targeted a revenue deficit, and 7 targeted zero revenue deficit for FY25
• Report highlights fiscal divergence among States and the gap between budgeted targets and actual fiscal outcomes

🎯 UPSC Relevance: GS3 — Government Budgeting, fiscal federalism and State finances; underscores the CAG's constitutional audit role.

📝 Prelims Facts:

• CAG is a constitutional body under Article 148; the present CAG is K. Sanjay Murthy
• Revenue surplus arises when revenue receipts exceed revenue expenditure
• Report title: 'State Finances 2024-25'

🔑 Key Term: Revenue Deficit — the excess of revenue expenditure over revenue receipts, signalling borrowing to meet day-to-day (non-capital) expenses.