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11 August 2026

Delhi infrastructure and CAG report

The topic involves a CAG report on state finances and specific legislative bills, which are standard subjects for questions on fiscal federalism, public expenditure management, and governance reforms.

1 min read Day 12 of 15 2 questions 1 prelims

Notes

  • CAG report on State Finances (2024-25) highlights a declining trend in capital expenditure in Delhi (2015-2025).
  • Capital expenditure as a percentage of total expenditure ranged from 7% to 15% during the decade.
  • Revenue expenditure grew by 88.38% between 2015-2025, driven by committed costs and subsidies.
  • Subsidies increased by ₹3,222 crore (172.48%), with electricity subsidies accounting for a ₹2,033 crore (128.83%) rise.
  • Fiscal space for long-term infrastructure investment and capital formation has been constrained by rising revenue expenditure.
  • Legislative developments include the Delhi Urban Shelter Improvement Board (Amendment) Bill, 2026, proposing to update the slum rehabilitation cut-off date to January 1, 2026.
  • The Delhi (Right of Citizen to Time Bound and Ease of Delivery of Services) Bill, 2026, was introduced to streamline public service delivery.

Part of a longer story

This is day 12 of 15 in Delhi urban infrastructure and civic management initiatives, which has been running since 24 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Analyze the impact of rising revenue expenditure on the fiscal capacity of state governments to undertake long-term infrastructure projects. Discuss with reference to the trade-off between social subsidies and capital formation. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The Comptroller and Auditor General (CAG) plays a pivotal role in ensuring fiscal accountability in India. Examine the significance of CAG reports in evaluating the quality of public expenditure and their role in guiding state-level fiscal policy reforms. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following best describes 'Capital Expenditure' in the context of state government finances?