New Delhi, June 16 -- Finances of Indian states are under strain, with rising debt levels and many breaching fiscal discipline norms, indicating greater borrowing pressures to meet spending needs.

The combined liabilities of India's 28 states rose to Rs.90.51 trillion in 2024-25, while 18 states overshot the 15th Finance Commission's fiscal deficit ceiling of 3% of gross state domestic product (GSDP), according to the Comptroller and Auditor General's (CAG) State Finances 2024-25 report released on Tuesday.

The report presents a mixed picture of state finances, with revenues continuing to grow but debt levels, fiscal deficits and committed expenditure remaining elevated.

As of 31 March 2025, total liabilities - which includes public de...