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7h ago

CAG Flags States’ Debt Tripling to ₹59.6 Lakh Crore by FY23

The decadal audit warns that salaries, pensions, interest costs now dominate state budgets, squeezing capital outlay.

CAG: States' salary, pension, interest burden up 2.5 times in 10 years
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Overview

  • The combined public debt of 28 states reached ₹59,60,428 crore in 2022-23, equal to 22.96% of their aggregated GSDP, up from ₹17,57,642 crore in 2013-14.
  • Eight states carried debt above 30% of GSDP, led by Punjab at 40.35%, with Nagaland at 37.15% and West Bengal at 33.70%, while Odisha (8.45%), Maharashtra (14.64%) and Gujarat (16.37%) were lowest.
  • In 11 states, including Andhra Pradesh, Punjab, Haryana, Rajasthan and Tamil Nadu, capital outlay fell short of net borrowings, indicating loans were used to meet revenue needs.
  • Committed expenditure on salaries, pensions and interest rose to ₹15,63,649 crore in 2022-23, and together with subsidies and grants accounted for over 83% of revenue spending.
  • Congress cited the report to accuse the Centre of coercive federalism over cess and GST compensation practices, alleging shrinking state revenues.