Public sentiment regarding India's state debt crisis is characterized by significant concern over fiscal sustainability, with a majority expressing frustration towards government policies and management of debt. While some comments highlight the potential benefits of borrowing when managed well, the prevailing tone is one of skepticism and fear about future economic stability. There are calls for greater transparency, accountability, and a shift away from populist spending practices.

Indian Government

State Governments

Political Leadership

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

DonaldTrumpReborn

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

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

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

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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

where does any money come into system if not from debt

Deep_Potential_5622

Who cares?

Neither the politicians nor the baboons. They know they're safe &amp; would keep enjoying the perks and power. Common man be damned.

rsinghal1965

Overall-Ad965

Debt isn't bad per-se unless the underlying thing is wasteful.


Home loan ✅️

Business, Education, Car loan ⚠️⚠️

Personal, Consumable loans, Marriage loans ❌️❌️❌️

[deleted]

Pulling income tax data isn't way to detect the earning. You know, I know, we all know.

  
ofcourse not denying the fact that people love EMI, showing up apple logo when they can't even afford a proper meal

rickysanchez_

Gareeb aur gareeb hota jaa raha hai and ameer super ameer.

DeadIndianDemocracy

This is not news ....this is happening to middle class in every country. Wages stagnated and Living expenses going up.

BeingHuman30

Is it safe to invest in senior secured bonds of finance companies then? Via stable money or wint wealth?

MrPancholi

Home loan EMI or renting and school fees has increased a lot. Also due to peer pressure and show off, people spend much more on travel( hotel/ flights) and phone &amp; accessories.

risk_1988

michael_sinclair

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The southern states imposed population control measures in good faith and managed to successfully convince the local population that family planning is important or at the very least managed to get people to stop with 2 kids per couple in the mid 80s and early 90s. Now that has dropped to 1 child. All while states like UP have been tottering along at 4 or 3 children till date per woman. So of course, this is bound to happen. But then, this is multivariate - education, lifestyle issues, stress, infertility, late marriages, migration away from India etc. all contribute to this population crisis.

Fancy-Use-8392

Competitive_Print92

This is just the consequences of the Southern States becoming more developed and richer.

Demographic studies have shown that people who are richer, and better educated, will typically have less children and children at an older age. Another thing is that it's proven that when women are given the choice, on average they have children at an older age focusing on other things in their lives. This is doubly true for career/working women. 

This is seen on a national scale all over the world. It's likely that the same thing is happening in the Southern States too. Nothing that bad to be worried about. In fact it could be seen as a positive indicator of the Southern States getting more developed and more progressive with their rights.

Darthjinju1901

Irony is, declining birth rate and death rate is also an important indicator of progressive development in the region. Once it hits the alarming level, govt introduces perks and subsidiaries to try to boost the birth rate, which is already happening in many countries like Japan, France, South Korea, etc.

quanta777

The immediate problem for TN will be the BJP using the current census figures to reallocate the seats in the Lok Sabha. If they manage to do so, then TN will have less representation and, consequently, less control over the central budget.

Careless-Bed-9853

I believe India will have a far, far worse demographic crisis in comparison to China.

pootis28

This is a very good thing. The only issue is that people from North India, especially Bihar and Uttar Pradesh, breed like rabbits so we still have an issue.

caesarkhosrow

Projections say India is set to hit close to 2 billion in 2060 and only then will it decline. We have a very long way to go before any sort of crisis.

womalone99

Every state in India has a declining fertility rate since independence. And the population of every state has been increasing ever since then, it's just that South's fertility rate dropped faster (better implementation of policies and increasing standards of life) compared to the Gangetic plains, the population share declined, it's just an obvious mathematical fact, there's nothing to worry about other than people here fear mongering and spreading hatred against other states. Most of the India has fertility rate under replacement rate of 2 as of now.

CarmynRamy

we are cooked! Time to enjoy being a colony.

It's a natural response to higher education and later marriages, which are good. Things we consciously wanted. What will happen next is, like Japan, we will have a high ageing population, and we will have to come up with policies that incentivizes earlier marriages.

Practical_Ant_9676

Many people not having more than one kid now a days.

Certain_Plan_5819

sarathy7

Guys , that is not a population crisis

It's sensible that you guys aren't overproducing, Population is a mess in India already.

Hope, It's not rathole type of population in south Atleast

Please be like that. We should follow in this particular field Atleast.

Sincerely,
A North Indian

manishdas2905

Could be migration to other countries as well

Moodyblackcat

Well well…. Let the central fund all the taxes money to more populated states in north india….We follow rules and regulations at the end what we get lol nothing…

Motor_Instance5278

AL2390

This is what expected to happen across India but since we followed what’s suggested by centre we facing decline but our north bros did not follow the suggestion so they are flourishing as usual….

Livid_Strawberry9304

Every states is declining except UP &amp; Bihar

https://preview.redd.it/z8647ge2dhaf1.jpeg?width=1080&amp;format=pjpg&amp;auto=webp&amp;s=d787f253f72c57372d7d47c8d3f1997bf2582f64

pahadigothic

While education is one thing, diabetes, obesity, PCI’s are other factors. Many of my friends n relatives have failed pregnancy due to their unhealthy lifestyle n they make drastic changes to fix it in 6 months for sake of having a child

Living_Buy_310

Lower fertility rate is partially true, because unemployment and alcohol abuse is rampant in Tamilnadu, but not fully true because people have also taken family planning seriously and hence the cumulative result is: decline in population.

Mudaliyar

https://preview.redd.it/cpuai7us9gaf1.jpeg?width=1080&amp;format=pjpg&amp;auto=webp&amp;s=c8cdf928c95cf25a1e575fdcc3a2b4d97e18b27e

up mp rj have higher decrease in fertility rate in percentage term compared to any southern state

latest data is from 2021 so even up and jharkhand might be below 2 at this time

failure_joker

It's always bound to happen. We should focus on how to convert the migrant workers into Tamil. That's how it works. How fast they adapt to Tamil culture and embrace it will only show if we are fcuked or not. If we allow the to live in their own caste, ethnic ghettos like the marwaris or gujjus, this won't go well at all. Marwaris  will never embrace Tamil culture, they won't even marry, forget marriage they won't even be BFF with tamils outside business. We shouldn't let the other vadakkans live the same life. Missionaries mari ellarayum, thirukural, periyarism, Bhakt literature, murugan worship, cinema idolo worship ndra mari avanungala convert pannanum.

fuluthikumar

Throughout most of the first half of our lives, we already had children who call themselves our parents, so we don't want actual children anymore. Thanks to our education and the movements started by Babasaheb and Periyar, we just know that we have that choice.


Pets are the new children. 


Plants are the new pets.

puyalbao

As a UP guy, I still haven’t scored a single chick.

Unlucky_Locksmith941

Replacement rate should be at 2.1 so.."நாம் இருவர் நமக்கு இருவர்" should be the slogan from now...

Downtown-Village-908

Demography is destiny, Ellarum vallara keerai sapdunga, niraya kulandhai selvam petru inputru valga. வாழ்க வளமுடன்

whatnakesmanspl

We in Maharashtra facing same issue.


We all need to unite. We need a visa system internally so that we can stop migrants.

dorito521

After caste census sc/st reservation percentage must be revised , all other caste that have controlled thier population  especiobc should get more reservation than now. Reservation should not be population based.

BrownndDeliciouAdam

No-Carrot5531

sathya619sk

There is only one solution to a peaceful and stable future. But atha sonna nammala "Secessionist" nu solluvanga. So namma gammunu iruppom 🤐

Random_Redditter_25

Shut up man

It's not crisis .

 It's in your head

Ok_Historian_1262

what do you mean by crisis..we are on track!!!

Turbulent_Cat_7082

That's why many south states are on verge of being islamic republics

Wake up babe, the daily dose of propaganda just dropped!!!

Embarrassed_Cold_856

A report reveals India's public debt has tripled in a decade, raising concerns about fiscal sustainability and governance.

India's State Debt Crisis

Why This Matters

Public Sentiment Summary

Highlighted Comments

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