Lok Sabha Question No. 3384 (UNSTARRED), answered on 2024-12-16
Subject: Debt burden on State Governments
Ministry: FINANCE
Asked by: Shri Dinesh Chandra Yadav

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA

## UNSTARRED QUESTION NO. 3384

TO BE ANSWERED ON MONDAY, 16 th  DECEMBER, 2024 25 AGRAHAYANA, 1946 (SAKA)

## DEBT BURDEN ON STATE GOVERNMENTS

## 3384.   SHRI DINESH CHANDRA YADAV

Will the Minister of Finance be pleased to state:

- (a) the debt on various State Governments across the country, State-wise;

(b) whether the debt burden of most of the State Governments has reached around 32 per cent of their GDP and the interest to be paid against the debt would cost 13-15 per cent to the States;

- (c) whether the Government is taking any steps to make the States self-reliant; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a) and (b) As per the Reserve Bank of India's report titled 'State Finances: A Study of Budgets of  2023-24',  the  details  of  Total  Outstanding  Liabilities  and  Debt  to  GSDP  ratio  (as  at  end March-  2024,  Budget  Estimates  (BE))  of  States  is  attached  at  Annexure-I.  As  per  the  data available  in  the  Report,  the  ratio  of  interest  payment  to  total  outstanding  liabilities  of  State Governments for the year 2023-24 (BE) ranges from 4.21 percent to 7.01 percent.

(c)  and  (d)  The  Union  Government  provides  funds  to  States  under  the  heads  viz.  Tax Devolution,  Finance  Commission  Transfers  including  Revenue  Deficit  Grants,  Scheme  for Special  Assistance  to  States  for  Capital  Expenditure/Investment.  Details  of  the  fund  transfer under these heads by the Union Government to the State Governments are given in AnnexureII.

*****

Annexure-I Statement Showing State-wise data on Total Outstanding Liabilities and Debt to

## GSDP Ratio  (As at end March-2024, BE)

|   Sl. | State             | Total Outstanding Liabilities   |   Debt to GSDP Ratio |
|-------|-------------------|---------------------------------|----------------------|
|     1 | Andhra Pradesh    | 4,85,491                        |                 33.5 |
|     2 | Arunachal Pradesh | 21,654                          |                 50.4 |
|     3 | Assam             | 1,50,900                        |                 26.6 |
|     4 | Bihar             | 3,19,618                        |                 37   |
|     5 | Chhattisgarh      | 1,22,164                        |                 24   |
|     6 | Goa               | 34,758                          |                 38.3 |
|     7 | Gujarat           | 4,67,464                        |                 18.2 |
|     8 | Haryana           | 3,36,253                        |                 29.9 |
|     9 | Himachal Pradesh  | 94,992                          |                 44.2 |
|    10 | Jharkhand         | 1,31,456                        |                 30.1 |
|    11 | Karnataka         | 5,97,618                        |                 22.7 |
|    12 | Kerala            | 4,29,271                        |                 36.9 |
|    13 | Madhya Pradesh    | 4,18,056                        |                 28.7 |
|    14 | Maharashtra       | 7,22,887                        |                 18.6 |
|    15 | Manipur           | 19,246                          |                 39.5 |
|    16 | Meghalaya         | 20,030                          |                 42.1 |
|    17 | Mizoram           | 14,039                          |                 36.2 |
|    18 | Nagaland          | 18,166                          |                 44.3 |
|    19 | Odisha            | 1,20,987                        |                 13.9 |
|    20 | Punjab            | 3,51,130                        |                 47.6 |
|    21 | Rajasthan         | 5,62,495                        |                 35.7 |
|    22 | Sikkim            | 15,530                          |                 31   |
|    23 | Tamil Nadu        | 8,34,544                        |                 31   |
|    24 | Telangana         | 3,89,673                        |                 27.8 |
|    25 | Tripura           | 26,506                          |                 32   |
|    26 | Uttar Pradesh     | 7,69,245                        |                 28.6 |
|    27 | Uttarakhand       | 89,466                          |                 26.9 |
|    28 | West Bengal       | 6,58,426                        |                 38.3 |

Source: State Finances: A Study of Budgets of 2023-24, Reserve Bank of India

Annexure-II

Scheme-wise  details  of  funds  released  by  the  Union  Government  to  the  State Governments.

(Rs. in crore)

| Heads                                                                       | 2021-22     | 2022-23     | 2023-24      | 2024-25 (As on 10.12.2024 )   |
|-----------------------------------------------------------------------------|-------------|-------------|--------------|-------------------------------|
| Tax Devolution                                                              | 8,82,903.79 | 9,48,405.82 | 11,29,493.71 | 9,01,149.51                   |
| Finance Commission Transfers                                                | 2,14,777.05 | 1,74,284.53 | 1,49,391.05  | 71,612.08                     |
| Scheme for Special Assistance to States for Capital Expenditure /Investment | 14,185.78   | 81,195.35   | 1,09,554.30  | 63,699.61                     |