India, June 22 -- Indian states spent nearly Rs 1.9 lakh crore on energy subsidies in 2024-25, making power support the largest component of their subsidy bill, according to the CAG.

The report says energy accounted for 43.4% of total state subsidy spending, followed by agriculture and allied activities.

States spent Rs 4.37 lakh crore on subsidies during the year, but interest payments on old loans were higher at about Rs 5.67 lakh crore.

The CAG says rising debt, salaries, pensions and interest payments are reducing the fiscal space available for development and capital investment.

Indian state governments spent nearly Rs 1.9 lakh crore on energy subsidies in 2024-25, making power support the largest component of their subsidy bill,...