Lok Sabha Question No. 3940 (UNSTARRED), answered on 2025-08-18
Subject: Utilisation of Loans by State Governments
Ministry: FINANCE
Asked by: Shri Arun Kumar Sagar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA UNSTARRED QUESTION NO. †3940 TO BE ANSWERED ON MONDAY, 18 th  AUGUST, 2025 27 SRAVANA, 1947 (SAKA)

## UTILISATION OF LOANS BY STATE GOVERNMENTS

## †3940.  SHRI ARUN KUMAR SAGAR:

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  the  loan  taken  by  the  State  Governments  from  the  Central  Government during the last three years and the current financial year;
- (b) whether  the  State  Governments  have  utilised  the  above  loan  for  the  purpose  it  was availed;
- (c) whether the Government has received any complaints regarding misuse of loan taken by the State Governments;
- (d) if so, the details thereof; and
- (e) the action taken/being taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) As per information provided by the Reserve Bank of India, details of the loan taken by the State Governments from the Central Government during the last three years i.e. 2021-22, 202223, 2023-24 (Revised Estimates-RE) and 2024-25 (Budget Estimates-BE) are at Annexure .

(b) to (e) All States have enacted their Fiscal Responsibility and Budget Management (FRBM) Act, which makes the State Government responsible to ensure prudence in fiscal management and  fiscal  stability  by  progressive  elimination  of  revenue  deficit,  reduction  in  fiscal  deficit, prudent  debt  management  consistent  with  fiscal  sustainability,  greater  transparency  in  fiscal operations of the government. Compliance to the Fiscal Responsibility and Budget Management

Act  is  monitored  by  the  State  Legislature.  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.

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## Annexure referred to in the answer of part (a) of Lok Sabha unstarred question no. †3940 for 18.08.2025

## Details of the loan taken by the State Governments from the Central Government during the last three years and FY 2024-25 (BE)

(Rs. in crore)

|   S.No. | States            | 2021-22   | 2022-23   | 2023-24 (RE)   | 2024-25 (BE)   |
|---------|-------------------|-----------|-----------|----------------|----------------|
|       1 | Andhra Pradesh    | 4,896     | 8,411     | 5,011          | 18,250         |
|       2 | Arunachal Pradesh | 371       | 1,564     | 2,557          | 2,000          |
|       3 | Assam             | 757       | 4,436     | 5,211          | 4,258          |
|       4 | Bihar             | 9,527     | 10,155    | 11,933         | 2,500          |
|       5 | Chhattisgarh      | 5,777     | 3,700     | 4,600          | 4,000          |
|       6 | Goa               | 1,013     | 573       | 586            | 465            |
|       7 | Gujarat           | 13,675    | 5,870     | 7,634          | 11,000         |
|       8 | Haryana           | 7,537     | 1,270     | 1,093          | 1,093          |
|       9 | Himachal Pradesh  | 3,588     | 740       | 890            | 902            |
|      10 | Jharkhand         | 3,246     | 3,627     | 5,274          | 4,800          |
|      11 | Karnataka         | 20,179    | 5,266     | 6,254          | 6,855          |
|      12 | Kerala            | 9,465     | 2,524     | 850            | 2,100          |
|      13 | Madhya Pradesh    | 12,614    | 10,665    | 14,500         | 12,500         |
|      14 | Maharashtra       | 18,625    | 10,236    | 16,354         | 9,721          |
|      15 | Manipur           | 254       | 575       | 450            | 600            |
|      16 | Meghalaya         | 515       | 1,105     | 70             | 90             |
|      17 | Mizoram           | 310       | 300       | 768            | 510            |
|      18 | Nagaland          | 315       | 518       | 912            | 37             |
|      19 | Odisha            | 7,606     | 1,019     | 5,572          | 6,713          |
|      20 | Punjab            | 12,586    | 963       | 972            | 2,500          |
|      21 | Rajasthan         | 9,336     | 7,084     | 10,199         | 10,283         |
|      22 | Sikkim            | 304       | 553       | 1,124          | 1,037          |
|      23 | Tamil Nadu        | 13,642    | 10,255    | 13,123         | 18,532         |
|      24 | Telangana         | 4,784     | 2,501     | 1,948          | 3,900          |
|      25 | Tripura           | 526       | 358       | 762            | 961            |
|      26 | Uttar Pradesh     | 10,748    | 8,823     | 20,939         | 21,539         |
|      27 | Uttarakhand       | 3,686     | 1,219     | 1,500          | 1,660          |
|      28 | West Bengal       | 8,515     | 5,111     | 7,416          | 9,330          |

BE-Budget Estimates

RE-Revised Estimates