Lok Sabha Question No. 105 (STARRED), answered on 2022-07-25
Subject: Debt Burden of States
Ministry: FINANCE
Asked by: Kishan Kapoor

FINANCE MINISTER

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF EXPENDITURE

## LOK SABHA

## STARRED QUESTION NO. †*105

## TO BE ANSWERED ON MONDAY 25 th  JULY, 2022

[3 SRAVANA, 1944 (SAKA)]

## Debt Burden of States

## †*105. SHRI KISHAN KAPOOR:

Will the Minister of FINANCE be pleased to state:

- (a) the  steps  taken  by  the  Government  to  control  the  increasing  amount  of  debt  in respect of various States in the country; and
- (b) the details of the said debt, at present, State-wise?

## ANSWER

(SHRIMATI NIRMALA SITHARAMAN)

(a) to (b):  A statement is laid on the Table of the House.

## Position No. 5

## Statement referred to in reply to Lok Sabha Starred Question No. †*105 for answer on July 25, 2022 raised by Shri Kishan Kapoor regarding 'Debt Burden of States':

(a) All  States  have  enacted  their  Fiscal  Responsibility  and  Budget  Management (FRBM)  Act.  Compliance  to  the  State  FRBM  Act  is  monitored  by  the  respective  State Legislatures.

Department of Expenditure, Ministry of Finance generally follows the fiscal limits mandated by the accepted recommendations of the Finance Commission while exercising the powers to approve borrowings by States under Article 293 (3) of the Constitution of India. The normal Net Borrowing Ceiling (NBC) of each State is fixed by the Union Government in the beginning of each financial year. Adjustments for the over-borrowing by  States  during previous years, if any, are made in the borrowing limits of subsequent year.

Instances of borrowings by certain State Public Sector companies, Special Purpose vehicles (SPVs) and other equivalent instruments, where principal and/or interest are to be serviced  out  of  the  State  Budgets,  had  come  to  the  notice  of  the  Ministry  of  Finance. Considering the effect of bypassing the NBC of the States by such borrowings, it was decided and  communicated  to  the  States  in  March  2022  that  borrowings  by  State  Public  Sector companies/corporations, Special purpose vehicles (SPVs) and other equivalent instruments, where  principal  and/or  interest  are  to  be  serviced  out  of  the  State  Budgets  and/or  by assignment  of  taxes/cess  or  any  other  State's  revenue,  shall  be  considered  as  Borrowings made by the State itself for the purpose of issuing the consent under Article 293(3) of the Constitution of India.

(b) As per Reserve Bank of India's report titled 'State finances: A study of budgets of 2021-22', the State-wise details of total outstanding  liabilities of  State  Governments at  the end of March 2020,  March 2021(RE) and March 2022 (BE) are given in Annexure.

*****

## Annexure referred to in the answer of part (b) of Lok Sabha Starred question no. †*105 for 25.07.2022

## State-wise details of total outstanding liabilities of State Governments at the end of March 2020, March 2021(RE) and March 2022 (BE)

(Rs. In crore)

|                   | (at the end-March)   | (at the end-March)   | (at the end-March)   |
|-------------------|----------------------|----------------------|----------------------|
| State             | 2020 (Actual)        | 2021 (RE)            | 2022 (BE)            |
| Andhra Pradesh    | 3,07,671.5           | 3,60,333.4           | 3,98,903.6           |
| Arunachal Pradesh | 12,125.1             | 13,841.1             | 15,122.6             |
| Assam             | 73,527.8             | 90,764.9             | 1,07,719.5           |
| Bihar             | 1,93,534.3           | 2,23,645.8           | 2,46,413.1           |
| Chhattisgarh      | 86,005.7             | 1,00,150.8           | 1,14,200.8           |
| Goa               | 22,645.7             | 25,765.3             | 28,509.9             |
| Gujarat           | 3,29,351.8           | 3,78,734.3           | 4,02,785.4           |
| Haryana           | 2,19,245.9           | 2,34,917.7           | 2,79,022.8           |
| Himachal Pradesh  | 62,218.4             | 66,939.4             | 74,686.4             |
| Jharkhand         | 94,504.5             | 1,05,570.9           | 1,17,789.8           |
| Karnataka         | 3,38,665.7           | 4,01,227.1           | 4,61,832.8           |
| Kerala            | 2,67,585.4           | 3,05,351.7           | 3,35,989.1           |
| Madhya Pradesh    | 2,11,489.0           | 2,66,899.1           | 3,17,736.8           |
| Maharashtra       | 4,80,955.2           | 5,30,310.4           | 6,08,999.7           |
| Manipur           | 11,405.8             | 12,334.4             | 13,510.6             |
| Meghalaya         | 12,320.7             | 14,027.1             | 15,125.0             |
| Mizoram           | 9,001.4              | 10,401.8             | 11,830.4             |
| Nagaland          | 13,836.1             | 14,586.3             | 15,620.8             |
| Odisha            | 1,43,800.3           | 1,56,985.1           | 1,67,205.8           |
| Punjab            | 2,29,629.9           | 2,59,901.8           | 2,82,864.6           |
| Rajasthan         | 3,53,182.0           | 4,08,526.6           | 4,77,177.2           |
| Sikkim            | 7,954.0              | 9,560.3              | 11,285.3             |
| Tamil Nadu        | 4,62,201.8           | 5,59,232.6           | 6,59,868.9           |
| Telangana         | 2,25,418.0           | 2,67,530.7           | 3,12,191.3           |
| Tripura           | 18,178.9             | 20,797.5             | 23,624.5             |
| Uttar Pradesh     | 5,49,559.2           | 6,00,006.2           | 6,53,307.5           |
| Uttarakhand       | 67,544.7             | 75,351.4             | 84,288.7             |
| West Bengal       | 4,45,790.4           | 5,01,837.2           | 5,62,697.2           |

Source:

RBI report titled 'State finances: A study of budgets of 2021-22'