Public sentiment is predominantly critical regarding the rising public debt among Indian states. Concerns about fiscal sustainability are widespread, with many expressing frustration over government accountability and transparency in financial management. While some commenters show cautious optimism about economic growth if debt is managed wisely, there is a significant apprehension about long-term economic consequences and a general sense of disconnection among others who feel indifferent or confused about the issue.

Indian Government

State Governments

Citizens

Bihar

Getting free money

Still having high loans

Individual-Bird-556

Cow belt states  :  who needs loan when we get unlimited fund from center that too after we failed in everything including birth control

707yr

Why does Arunachal have a darker shaded of blue than bihar despite having just 26% debt to gdp ratio? I wonder if this low 12% rate will stay for Odisha under the new government.

Few_Bet_8952

Odisha quietly tops yet barely gets a mention.

Special_Gold5224

B..b..but freebies in Tamil Nadu! Big debt! :(

-sendmemes-

Why arunachal is more dark as it has less %than UP

phantasmagoria04

That-Bag6033

30 percent is RBI’s hard limit. Anyone above 30 is bad.

vedantbajaj

Gujarat, even without the alcohol tax income, able to keep such low debt to gdp is commendable

Gujjus sure are good with money.

setrekus_ra

Please make sure you use good news sources. If you are posting a screenshot, please comment a news source link. Please change the flair if this isn't News. Not sure which flair to use? Check out our guide to post flairs [here](https://www.reddit.com/r/IndianStreetBets/wiki/index/postflair)


*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IndianStreetBets) if you have any questions or concerns.*

AutoModerator

This is Nehru's fault as he might be the one to take the first kind of loan. And Aurangzeb was the culprit because he descendents might have given this loan to Nehru.

/s

Now we understand where do these schemes, ration, advertisement hoardings, sponsorship for rioting and IT cells, bribes, etc. comes from.

Professor_Moraiarkar

Damn AAP in punjab with iitan behind topped the list ? Say it ain't so 


Also any guesses what their spend pattern is?

shangriLaaaaaaa

Overall-Ad965

where does any money come into system if not from debt

Deep_Potential_5622

India’s states are sitting on a mountain of debt that has tripled in a decade, according to a first-of-its-kind decadal analysis by the Comptroller and Auditor General of India (CAG).

As reported by The Indian Express, the total public debt of all 28 states rose from Rs 17.57 lakh crore in 2013-14 to Rs 59.60 lakh crore in 2022-23. That means debt grew more than 3.3 times in ten years, eating up a bigger share of states’ economic output.

Measured against Gross State Domestic Product (GSDP), debt went up from 16.66 percent in 2013-14 to nearly 23 percent by 2022-23. The findings were released on Friday by CAG K Sanjay Murthy during the State Finance Secretaries Conference.

Where the burden is heaviest

Not all states are equally indebted. At the end of FY23, Punjab recorded the highest debt-to-GSDP ratio at 40.35 percent, followed by Nagaland (37.15 percent) and West Bengal (33.70 percent).

At the other end of the spectrum, Odisha kept its debt ratio at just 8.45 percent, while Maharashtra (14.64 percent) and Gujarat (16.37 percent) also managed relatively lower levels.

Overall, eight states had public debt above 30 percent of GSDP, six states below 20 percent and the rest between 20 percent and 30 percent, The Indian Express noted.

The states’ combined debt was equivalent to 22.17 percent of India’s GDP, which stood at Rs 268.9 lakh crore in FY23.

Why the numbers matter

Public debt isn’t just about headline figures—it shows how governments are funding their spending. According to the report, state debt as a share of revenue receipts has hovered between 128 percent and 191 percent in the past decade. On average, debt stood at around 150% of states’ annual revenues.

A sharp jump was seen in FY21, when debt rose to 25 percent of GSDP from 21 percent the previous year, largely because the Covid-19 pandemic hit economic activity, even as states borrowed more.

Much of the additional borrowing between 2020-21 and 2022-23 came from the Union government through back-to-back GST compensation loans and special assistance packages for capital expenditure.

Borrowing for day-to-day spending

The report also flagged a breach of the so-called 'golden rule' of borrowing, which says governments should raise debt only for investment, not to fund operating costs.

In FY23, 11 states, including Andhra Pradesh, Punjab, West Bengal, Kerala, Bihar, and Tamil Nadu, spent part of their borrowings on meeting revenue deficits instead of capital expenditure.

In Punjab and Andhra Pradesh, capital spending was as low as 26 percent and 17 percent of net borrowings, respectively. In Haryana and Himachal Pradesh, only about half of the debt went into capital projects.

States borrow in many ways, through market securities like bonds and treasury bills, loans from banks, Ways and Means Advances from the RBI, and funding from institutions like LIC and NABARD. Together, these form the public debt that CAG has mapped.

opinion_discarder

Will CAG come out with the reports like 2G scam, CWG scam, Coal scam and claim corruption now?

DonaldTrumpReborn

This is a very huuuge issue which no one's talking about.

Let's also talk about National debt which is also rising at an alarming rate.

The national debt has increased so much without any significant visible changes in economy, infrastructure, manufacturing, agriculture or any other thing. Like, for what are we even incurring more debt, and how are we going to repay it considering how the clown foreign policy of this government has already isolated us?

The worrying part is not even a single debate on this in parliament or any large scale discussion.

This clown government will ensure demise of Indian economy.

ShittyHuman1999

This subreddit is actively moderated and has strict posting &amp; commenting rules. You may be banned without warning if you fail to follow them.

All rules are listed in the sidebar on New Reddit — it is your responsibility to read and follow them.

r/AskIndia is an inclusive space. Hate speech, bigotry, or harassment will result in a permanent ban. Please utilise the report option if a post or comment breaks our rules.


*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskIndia) if you have any questions or concerns.*

lol they study for the position for themselves , thats 99% of the people who aspire to be "civil servant"

Klutzy_Pool2712

Roj 12 ghante parhai kia, fir selection hone k baad politicians k talve chaate, ab thora paisa kamana to banta h. 

infinite-Joy

She's actually helping the poor. By keeping them poor she's allowing them to apply for various government schemes and take up financial benefits. She's a great lady building a great nation. Who the hell believes in honesty. Officers with honesty and integrity only follow rules and regulations and try to reduce corruption and provide support to the needy ones. But look at these corrupt ones. They do everything so fast it's faster than China's bullet train and cheaper than Add-ani's coal price.

Positve_bro_9120

This article may be paywalled. If you encounter difficulties reading the article, try [this 12ft.io link](https://12ft.io/https://www.moneycontrol.com/news/business/economy/state-debt-triples-in-a-decade-touches-rs-59-6-lakh-crore-cag-flags-worrying-trends-13562625.html) &amp; [this archive link](https://archive.is/?run=1&amp;url=https://www.moneycontrol.com/news/business/economy/state-debt-triples-in-a-decade-touches-rs-59-6-lakh-crore-cag-flags-worrying-trends-13562625.html) for a non paywalled version.


*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/unitedstatesofindia) if you have any questions or concerns.*

Day after day reality check of where we are heading towards

Chaiwala_69_

Making states dependent on union aid by fucking up their balance sheets with debt, by not releasing funds on time. What a lovely tactic to undermine federalism.

kilaithalai

our CAG has been tied down like shit since 2018 good know when other goverment comes how many skeletons are going to come out on record.

sharkpeid

Can our state govts grow a spine and take hard measures -&gt; austerity, accountability, fiscal prudence and zero freebies

Sir_Kasum

A report highlights a significant surge in public debt among Indian states, raising concerns about fiscal sustainability.

Rising Public Debt of Indian States

Why This Matters

Public Sentiment Summary

Highlighted Comments

Parties Involved

What the people want