Assam Government Debt Surges Over 107%

The Assam government's outstanding debt has surged by over 107% from ₹59,425.61 crore in 2018-19 to ₹1,23,214.80 crore in 2022-23, as revealed in a recent Comptroller and Auditor General (CAG) report. This increase is attributed to heightened borrowings from the open market, leading to a rise in the outstanding liabilities-to-GSDP ratio from 19.21% to 24.98% during the same period. While Assam's Gross State Domestic Product grew at an average rate of 11.89%, the public debt grew at a higher average rate of 27.18%, raising concerns about future interest payment pressures. Additionally, capital expenditure decreased by over 20% in FY'23 compared to the previous year, which may impact infrastructure development. The report also highlighted misclassifications in expenditures, contributing to an overstated capital expense figure. Overall, the fiscal trends indicate increasing stress on the state's finances.