IIOJK: CAG report highlights fiscal weakness, GDP growth slows
Srinagar: The Comptroller and Auditor General (CAG) report on Indian illegally occupied Jammu and Kashmir (IIOJK) has revealed a slowdown in the territory’s economic growth, with the Gross State Domestic Product (GSDP) rising 11.18% in 2024–25, down from 12.51% the previous year.
According to Kashmir Media Service, presented in the legislative assembly by IIOJK Chief Minister Omar Abdullah, the report flagged financial irregularities, unjustified expenditures, and a rising debt burden, raising serious concerns about the territory’s fiscal stability.
While per capita income improved from INR 101,645 in 2020–21 to INR 154,826 in 2024–25, it remains below the national average. Experts note that gradual increases over the past three years are insufficient, stressing the need for further reforms to strengthen IIOJK’s financial foundations.
The report highlighted that over 85% of revenue spending is absorbed by committed expenses and subsidies, leaving little room for development and investment. Despite spending more than INR 82,000 crore, infrastructure investment fell short, and budgeted targets were not fully achieved, pointing to structural fiscal weaknesses.
A particularly concerning trend is the territory’s rising debt, which grew from 8.87% of GSDP in 2020–21 to 17.21% in 2024–25.
