Lok Sabha Question No. 4004 (UNSTARRED), answered on 2025-08-18
Subject: Debt and Liabilities of States
Ministry: FINANCE
Asked by: Shri Sunil Bose

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 4004 TO BE ANSWERED ON MONDAY, 18 th  August, 2025 27 SRAVANA, 1947 (SAKA)

## DEBT AND LIABILITIES OF STATES

## 4004.  SHRI SUNIL BOSE :

Will the Minister of FINANCE be pleased to state:

- (a) the quantum of debt and other liabilities of the Government and State Governments along with the total combined debt and liabilities of all the States as on March 31, 2025, State-wise;
- (b) the details of the five States  in the country which have the highest and the lowest debt-to GSDP ratio, respectively;
- (c) the manner in which the combined debt-to-GDP ratio of all States compares to that of the Government during the last five years; and
- (d) whether the Government has conducted any assessment of the impact of off-budget borrowings and contingent liabilities on State finances, if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a)  to  (b)  As  per  the  information  published  by  the  Reserve  Bank  of  India  (RBI)  in  'State Finances:  A  Study  of  Budgets',  the  estimated  'debt  &  other  liabilities'  of  all  State Governments  and  State  wise  'debt  to  Gross  State  Domestic  Product  (GSDP)  ratio'  in descending order as on March 31, 2025 are given in Annexure-I .

As per the information provided by RBI, the estimated combined liabilities of the Central & State Governments as on March 31, 2025 is Rs. 2,67,35,462 Crore.

- (c)  The  comparison  of  Debt  to  Gross  Domestic  Product  (GDP)  ratio  of  the  Central Government and Debt to GSDP ratio of all States & Union Territories (UTs) with Legislature for the last five years is given in Table below:

(in percent)

| Year               |   2019-20 |   2020-21 |   2021-22 |   2022-23 |   2023-24 (Revised Estimates) |
|--------------------|-----------|-----------|-----------|-----------|-------------------------------|
| States and UTs     |      26.6 |      31   |      29.1 |      28.2 |                          28.5 |
| Central Government |      52.3 |      61.4 |      58.8 |      57.9 |                          58.1 |

- (d) 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. Instances of off-budget 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 Net Borrowing Ceiling (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. The off-budget borrowings declared by States since 202122 are given in Annexure-II .

*****

## Annexure-I referred to for the answer of part (a) to (b) of Lok Sabha Unstarred question no. 4004 for 18.08.2025

Estimated outstanding liabilities of all State Governments and Debt to GSDP ratio in descending order as on March 31, 2025

|   Sl. No. | States            | Estimated outstanding Liabilities (Rs. in crore)   |   Debt-to GSDP ratio (in percent) |
|-----------|-------------------|----------------------------------------------------|-----------------------------------|
|         1 | Arunachal Pradesh | 25,464                                             |                              57   |
|         2 | Punjab            | 3,78,453                                           |                              46.6 |
|         3 | Himachal Pradesh  | 1,02,594                                           |                              45.2 |
|         4 | Nagaland          | 20,197                                             |                              40   |
|         5 | Meghalaya         | 23,145                                             |                              39   |
|         6 | West Bengal       | 7,14,196                                           |                              38   |
|         7 | Bihar             | 3,61,522                                           |                              37.3 |
|         8 | Kerala            | 4,71,091                                           |                              36.8 |
|         9 | Manipur           | 19,917                                             |                              36.7 |
|        10 | Rajasthan         | 6,37,035                                           |                              35.8 |
|        11 | Sikkim            | 19,038                                             |                              35   |
|        12 | Andhra Pradesh    | 5,62,557                                           |                              34.7 |
|        13 | Uttar Pradesh     | 8,57,844                                           |                              31.8 |
|        14 | Madhya Pradesh    | 4,80,976                                           |                              31.6 |
|        15 | Mizoram           | 14,201                                             |                              31.6 |
|        16 | Haryana           | 3,69,242                                           |                              30.4 |
|        17 | Tamil Nadu        | 9,55,691                                           |                              30.3 |
|        18 | Goa               | 35,724                                             |                              30.2 |
|        19 | Chhattisgarh      | 1,63,266                                           |                              29.1 |
|        20 | Tripura           | 26,607                                             |                              27.9 |
|        21 | Assam             | 1,77,983                                           |                              27.5 |
|        22 | Jharkhand         | 1,34,867                                           |                              26.6 |
|        23 | Karnataka         | 7,25,456                                           |                              26.5 |
|        24 | Telangana         | 4,42,298                                           |                              26.2 |
|        25 | Uttarakhand       | 95,408                                             |                              24.2 |
|        26 | Maharashtra       | 8,12,068                                           |                              19   |
|        27 | Gujarat           | 4,94,436                                           |                              17.9 |
|        28 | Odisha            | 1,54,960                                           |                              16.3 |

## Annexure-II referred to for the answer of part (d) of Lok Sabha Unstarred question no. 4004 for 18.08.2025

## Year wise details of Off-Budget Borrowings declared by State Governments

(Rs. in crore)

|   Sl. No. | State             | 2021-22   | 2022-23   | 2023-24   | 2024-25   |
|-----------|-------------------|-----------|-----------|-----------|-----------|
|         1 | Andhra Pradesh    | 6,288     | 1,976     | 613       | -         |
|         2 | Arunachal Pradesh | -         | -         | -         | -         |
|         3 | Assam             | 239       | 853       | 1,102     | 542       |
|         4 | Bihar             | 520       | 687       | 53        | -         |
|         5 | Chhattisgarh      | 618       | 2,283     | 780       | 584       |
|         6 | Goa               | 77        | -         | -         | -         |
|         7 | Gujarat           | -         | -         | -         | -         |
|         8 | Haryana           | 21        | 22        | -         | -         |
|         9 | Himachal Pradesh  | -         | -         | -         | -         |
|        10 | Jharkhand         | -         | -         | -         | -         |
|        11 | Karnataka         | 2,350     | 4,029     | -         | 5,438     |
|        12 | Kerala            | 14,312    | 6,709     | 4,688     | 983       |
|        13 | Madhya Pradesh    | 533       | 564       | 374       | 568       |
|        14 | Maharashtra       | -         | 2,500     | 7,700     | 13,990    |
|        15 | Manipur           | -         | 293       | 228       | 109       |
|        16 | Meghalaya         | -         | 64        | 6         | 12        |
|        17 | Mizoram           | -         | -         | -         | -         |
|        18 | Nagaland          | -         | -         | 39        | -         |
|        19 | Odisha            | -         | -         | -         | -         |
|        20 | Punjab            | 770       | 484       | 1,675     | 4         |
|        21 | Rajasthan         | -         | -         | -         | -         |
|        22 | Sikkim            | 454       | 121       | -         | -         |
|        23 | Tamil Nadu        | 595       | 1,121     | 1,560     | 28        |
|        24 | Telangana         | 35,258    | 9,597     | 2,546     | 2,697     |
|        25 | Tripura           | -         | -         | -         | -         |
|        26 | Uttar Pradesh     | 3,951     | 3,488     | -         | -         |
|        27 | Uttarakhand       | -         | -         | -         | -         |
|        28 | West Bengal       | 1,089     | 1,089     | -         | -         |