Overview

• At the end of FY 2022-23, the combined public debt of 28 states stood at Rs 59,60,428 crore, equal to 22.96% of their aggregated GSDP.
• Debt burdens vary widely, with eight states above 30% of GSDP and the highest ratios in Punjab (40.35%), Nagaland (37.15%) and West Bengal (33.70%).
• Odisha (8.45%), Maharashtra (14.64%) and Gujarat (16.37%) recorded the lowest debt-to-GSDP ratios.
• The CAG reports that state public debt has averaged about 150% of revenue receipts, and the ratio climbed from 21% to 25% of GSDP in 2020-21 due to the pandemic slump and GST-related central loans.
• In 11 states—including Andhra Pradesh, Assam, Bihar, Haryana, Himachal Pradesh, Kerala, Mizoram, Punjab, Rajasthan, Tamil Nadu and West Bengal—capital expenditure was lower than net borrowings, with Andhra Pradesh at 17% and Punjab at 26%.