New Delhi, July 21 -- India's national auditor, Comptroller and Auditor General of India (CAG), has flagged several fiscal inconsistencies in the Union government's compliance with the Fiscal Responsibility and Budget Management (FRBM) Act, including a substantial Rs.21.3 trillion in unrealized tax revenues at the end of 2022-23.

The CAG's latest report, presented in Parliament on Monday, comes at a time when the government has committed to reducing India's fiscal deficit to below 4.5% of gross domestic product (GDP) by 2025-26, as reiterated in recent medium-term fiscal policy statements.

However, the audit observations suggest gaps in transparency and data consistency that may undermine its fiscal credibility.

The CAG's Report No. 3 ...