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CAG Report: Kerala's Revenue Arrears Hit ₹41,188.44 Cr, 44% of Own Revenue

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
23 Jun 2026
~2 min
Source: The Hindu
Key Data:₹41,188.44 crore₹12,951.77 crore44.23%₹93,128.81 crore₹57,887.85 crore₹18,907.56 crore
Bodies:Comptroller and Auditor General (CAG)Kerala Assembly
Practice MCQs from today's news ▸
What This Article Covers

1.CAG report on State Finances for 2024-25 shows Kerala's revenue arrears at ₹41,188.44 crore as on March 31, 2025.

2.Included ₹12,951.77 crore unrecovered for over five years; cumulative arrears including loan principal stand at ₹57,887.85 crore.

3.Arrears amount to 44.23% of state's own revenue (₹93,128.81 crore), with State GST (₹18,907.56 cr) being the largest component.

The Big Picture
Prelims · HighMains · Medium

CAG report tabled in Kerala Assembly reveals revenue arrears of ₹41,188.44 crore as on March 2025, which is 44.23% of the state's own revenue. Over ₹12,951 crore remains unrecovered for more than five years, indicating weak tax enforcement. This is critical for understanding state fiscal health and examiner focus on CAG reports.

Exam Lens

Quick Exam Facts From News

Total Revenue Arrears₹41,188.44 crore
As % of State Own Revenue (2024-25)44.23%
Arrears >5 years unrecovered₹12,951.77 crore
Cumulative Arrears (incl. loans)₹57,887.85 crore
Largest ComponentState GST: ₹18,907.56 crore

1-Minute Revision

  • ›Total Revenue Arrears: ₹41,188.44 crore
  • ›As % of State Own Revenue (2024-25): 44.23%
  • ›Target this Data: ₹41,188.44 crore (total revenue arrears as on March 31, 2025)
  • ›Target this Nodal Body: Comptroller and Auditor General (CAG) – constitutional body under Article 148
  • ›Target this Legal Point: CAG report on State Finances for 2024-25 tabled in Kerala Assembly

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which constitutional body is responsible for auditing the accounts of state governments and submitting reports to the Governor?

Q2Statement-basedHard

Consider the following statements:

1. Kerala's revenue arrears as on March 31, 2025 stood at ₹41,188.44 crore.

2. The arrears accounted for 50% of the state's own revenue for 2024-25.

3. The CAG report on state finances was tabled in the Kerala Assembly on June 23, 2026.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the CAG report, what amount of revenue arrears remained unrecovered for more than five years?

Q4Application/ImpactMedium

Which of the following factors did the CAG identify as contributing to subdued revenue growth for Kerala?

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