STATES
States’ combined public debt trebles to Rs 59.60 lakh crore in 10 years
- IBJ Bureau
- Sep 20, 2025
The combined public debt of all 28 States has trebled in 10 years, rising from Rs 17.57 lakh crore in 2013-14 to Rs 59.60 lakh crore in 2022-23, according to a report of the Comptroller and Auditor General of India (CAG).
The report highlights the increasing strain on States’ fiscal health, partly due to increased spending responsibilities outpacing revenue generation and increased borrowing to sustain expenditure during economic slowdowns and the COVID-19 pandemic.
The total outstanding liabilities of State governments have grown substantially over the past decade, from Rs 17.57 lakh crore in 2013-14 to Rs 59.60 lakh crore in 2022-23. The CAG’s comprehensive CAG report, which has put out this data, provides a decadal analysis of states’ fiscal health, including the factors that have led to the surge in debt.
States have faced growing developmental responsibilities, particularly after the 14th Finance Commission increased their fiscal autonomy, which also gave rise to their expenditure manifold.
Besides, economic slowdown and the COVID-19 shock led to decline in the States’ revenue collections, forcing them to increase borrowing to fund essential expenditures.
The rising debt levels suggest a period of fiscal strain on the States' economies.
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