<h1>CAG warns state government's off-budget borrowings jumped from Rs 51 crore to Rs 10,135 crore undermining fiscal transparency</h1> The Comptroller and Auditor General raised concerns over a state government's increasing reliance on off-budget borrowings for capital expenditure, warning these practices undermine fiscal transparency and bypass legislative oversight. The audit report revealed that while official budget documents disclosed only minimal off-budget borrowings, actual outstanding amounts increased dramatically from Rs 51 crore in 2019-20 to Rs 10,135 crore by 2023-24. The CAG emphasized that such borrowings through state-owned entities create substantial public liabilities that could lead to debt traps without legislative knowledge. The report stressed that all government borrowings should be included in respective budgets and subject to legislative scrutiny, noting violations of state fiscal responsibility laws requiring full disclosure of liabilities in budget documents.