CAG report flags dismal returns for Raj govt on equity infusion in PSUs

Jaipur: Despite pumping Rs 62,818 crore into various public sector undertakings (PSUs) over the years, the Rajasthan govt earned meagre returns of just Rs 6 crore in 2024–25, the latest report of the Comptroller and Auditor General of India (CAG) has revealed.The audit report, recently tabled in the state Assembly, highlighted the weak financial performance of state-run enterprises even as public investment continued to rise. According to the report, the govt made a fresh equity infusion of Rs 1,047 crore into state-owned companies, joint ventures and cooperative institutions during the last financial year.
Of this, Rajasthan State Road Transport Corporation received the largest share of Rs 855 crore, while Rs 170 crore was invested in Rajasthan Power Finance Corporation Ltd.The report also pointed to a sharp rise in borrowing, together with increased capital spending over the past five years. "Total debt stood at Rs 48,941 crore in 2020–21 with capital expenditure of Rs 15,271 crore, slipped to Rs 45,235 crore in 2021–22 as spending rose to Rs 24,152 crore, and fell further to Rs 34,828 crore in 2022–23 with a capex of Rs 19,798 crore," the report read. "However, borrowing surged to Rs 58,268 crore in 2023–24 while capital outlay touched Rs 26,646 crore, and climbed further to Rs 59,098 crore in 2024–25 alongside a record Rs 30,727 crore in capital expenditure," it added.Against this backdrop of rising liabilities, the state increasingly relied on short-term borrowing to meet routine expenditure. The govt availed special advances from the Reserve Bank of India on 133 separate occasions, amounting to Rs 91,251 crore over 271 days, and paid Rs 161 crore in interest. "In 57 instances alone, advances worth Rs 31,029 crore were drawn for 100 days, resulting in an interest burden of Rs 19 crore," the report mentioned.The audit further noted that grants to panchayati raj institutions and urban local bodies increased by nearly Rs 15,000 crore over the last five years. This expansion in fiscal support, however, coincided with a rapid rise in the state's overall debt, which touched Rs 6.32 lakh crore in 2024–25, or 37.1% of Rajasthan's gross state domestic product (GSDP).