Assams Debt Burden: Outstanding Liabilities Exceed Rs 1.15 Lakh Crore

The total outstanding liabilities of the Assam government have reached a staggering Rs 1,15,751.32 crore as of March 31, 2023, according to Finance Minister Ajanta Neog. Despite this significant debt burden, Neog assured the state Assembly that the debt-to-GSDP ratio remains within the prescribed limits.

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Debt Repayment and Financial Health

Neog emphasized that the government has been diligently repaying debts as per schedule and has achieved self-reliance in covering salary, pension, and loan interest payments from its own resources. She highlighted the substantial increase in capital expenditure, which has risen from Rs 4,543 crore in 2014-15 to Rs 16,338 crore in 2022-23, as evidence of the state's robust financial health.

Historical Debt Data

The minister provided a detailed breakdown of the state government's debt over the years. In 2016-17, the total debt stood at Rs 5649.45 crore, followed by a steady increase in subsequent years. The debt burden reached Rs 25902.16 crore in 2022-23. Neog also mentioned that the state government had availed loans amounting to Rs 35,433 crore from 2001-02 to 2013-14, while an amount of Rs 22,790 crore was repaid till 2022-23.

Concerns and Questions

Despite the government's assurances, concerns were raised by Independent legislator Akhil Gogoi and Congress MLA Bharat Chandra Narah. Gogoi expressed apprehension over the growing debt burden, pointing out that states like Tamil Nadu, Maharashtra, and Uttar Pradesh, which have higher debt levels, also have significantly higher revenue from their own sources compared to Assam. Narah sought information on the total interest payment and revenue received in the years 2022-23 and 2023-24.

Government's Response

In response to these concerns, Neog clarified that all loans were taken as per rules and that availing loans is essential for infrastructure development. She assured the House that the latest data on interest payments and revenue received would be available at the end of the 2023-24 fiscal year.

The Assam government's outstanding liabilities have indeed reached a substantial level, but the state's debt-to-GSDP ratio remains within permissible limits. The government's efforts to repay debts and achieve self-reliance in meeting essential expenditures are commendable. However, concerns about the growing debt burden and the need for prudent financial management must be addressed to ensure the state's long-term fiscal sustainability.