Overview
- The Comptroller and Auditor General’s State Finances Audit Report, tabled on July 10, 2026, identified Rs 28,325 crore of off‑budget borrowings largely routed through the Maharashtra State Road Development Corporation (MSRDC) using HUDCO loans.
- The CAG found Rs 15,586 crore drawn in January–March 2025 was placed into Virtual Personal Deposit Accounts (VPDAs) and DDO bank balances, a practice the report says amounted to parking funds without immediate use and weakened budget discipline.
- Accounting misclassifications flagged by the audit include Rs 4,069.91 crore of revenue spending booked as capital and interest/principal items charged to capital heads, changes that raise the corrected revenue deficit to Rs 36,342.29 crore and the fiscal deficit to Rs 1,44,926.46 crore (3.20% of GSDP).
- The report singled out systemic control failures across departments, noting Rs 11,040.06 crore of outstanding utilisation certificates in Urban Development, nearly Rs 8,000 crore of idle DDO balances, long‑pending contingent bills, and Rs 3,541.16 crore of excess spending in the Mukhyamantri Majhi Ladki Bahin Yojana without specific departmental justification.
- The CAG recommended full disclosure of off‑budget borrowings, return of unspent balances to the consolidated fund, tighter linkages between fund release and actual need, and a medium‑term fiscal consolidation roadmap, steps that are likely to prompt legislative questions and demands for remedial action.