State’s Debt Surges Tenfold in a Decade, Reaches ₹24,118 Crore in 2023-24
Why in News?
- Assam’s debt has surged tenfold over the past decade, reaching ₹24,118 crore in 2023-24, raising concerns about the state’s financial health and economic sustainability. The sharp rise in debt has sparked discussions on fiscal mismanagement, increasing reliance on borrowings, and long-term economic risks.
Important Key Points:
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Significant Increase in State Debt: Assam’s total outstanding liabilities escalated from ₹82,741.09 crore in 2021 to ₹1,15,751.32 crore by March 31, 2023, marking a rapid rise in the state’s debt burden.
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Annual Borrowings Growth: The state’s average annual borrowings increased by nearly 78% over three years from 2019-20, indicating a growing reliance on loans to finance expenditures.
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Recent Loan Acquisition: In the financial year 2023-24, the Assam government took a provisional loan of ₹24,118 crore.
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Debt Repayment Efforts: The state government has been repaying its loans, with repayments of ₹6,924 crore in 2023-24, ₹4,863 crore in 2022-23, and ₹5,177 crore in 2021-22.
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Economic Growth Projections: Despite the rising debt, the Chief Minister projected a 13% growth for Assam, surpassing the national growth rate of 10%, suggesting optimism about the state’s economic prospects.
