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APSC Answer Writing (Daily) based on Assam Tribune – 26/05/2026

For APSC CCE and other Assam Competitive examinations aspirants, practicing Daily Answer Writing is vital. This blog covers the most important Main question and its model Answer from the Assam Tribune today (26-05-2026).

📘 GS Mains Model Question (APSC CCE)

📝 Question

“Fiscal sustainability is essential for ensuring long-term economic stability and developmental governance.”
Discuss the major fiscal challenges faced by states like Assam in maintaining fiscal sustainability. Examine the role of institutions such as the Comptroller and Auditor General (CAG) and fiscal reforms in strengthening public finance management.
(250 words)

✍️ Model Answer

Fiscal sustainability refers to the ability of a government to maintain stable public finances without excessive debt accumulation or financial instability. For developing states like Assam, maintaining fiscal sustainability is critical for ensuring infrastructure development, welfare delivery, and long-term economic growth.

Recent observations in the CAG report on Assam’s finances have highlighted several fiscal concerns.

Major Fiscal Challenges

1. Rising Public Debt

Increasing borrowings have expanded the State’s debt burden, leading to higher interest payment obligations.

2. High Committed Expenditure

A significant portion of expenditure is devoted to:

Salaries,
Pensions,
Interest payments,
leaving limited fiscal space for developmental activities.

3. Weak Revenue Mobilization

Dependence on central transfers and relatively lower own-tax revenue constrain fiscal autonomy.

4. Off-Budget Borrowings

Hidden liabilities outside the formal budget framework reduce transparency and may create long-term repayment pressures.

5. Low Capital Expenditure

Insufficient investment in infrastructure and productive sectors affects growth potential and employment generation.

Role of CAG & Fiscal Reforms

The Comptroller and Auditor General (CAG) strengthens:

Financial accountability,
Audit transparency,
Legislative oversight.

Fiscal reforms such as:

FRBM compliance,
Digital tax administration,
Expenditure rationalization,
Transparent budgeting,
can improve fiscal discipline and governance efficiency.

Conclusion

Sustainable public finance management is essential for balancing developmental needs with economic stability. Assam must strengthen revenue systems, improve expenditure efficiency, and maintain fiscal transparency to ensure long-term inclusive growth and financial resilience.

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